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RESOLUTION 22-19
A RESOLUTION OF CITY OF MCCALL, IDAHO, ADOPTING THE 2022 MCCALL AREA
LOCAL HOUSING ACTION UPDATE, PROVIDING FOR RELATED MATTERS, AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the McCall Area Comprehensive Plan was prepared in accordance with the Idaho
Local Planning Act, Idaho Code Sections 67-6508 and 67-6509, and was adopted by the McCall
City Council and Valley County Commission in 2018;
WHEREAS, In conjunction with the Comprehensive Plan, the City of McCall has conducted an
extensive planning process involving members of the McCall community, and examined the
vision, goals and objectives, the applicable law, and future land map;
WHEREAS, the Comprehensive Plan identified Local Housing as a top priority and the Local
Housing Strategy estimated that a minimum of 730 Local Housing units were needed at that time
to address housing shortages for local residents and employees;
WHEREAS, City staff utilized the Comprehensive Plan and Housing Strategy to develop a specific
Housing Program which includes six housing initiatives;
WHEREAS, as the Local Housing Program was implemented, it became apparent that McCall
needed a community plan to share ideas, resources and to set a specific course of action for the
next five years to ensure successful implementation of local housing policies, programs, funding
mechanisms, organizations and projects;
WHEREAS, the City of McCall developed out a Request for Qualifications and WSW Consulting
was selected as the project lead with a technical team consisting of SMR Development, LLC,
Navigate, LLC and Logan Simpson for outreach and facilitation;
WHEREAS, a Steering Committee made up of diverse groups of organizations from the private,
public and non-profit sector were formed to meet over six months and each put in over 20 hours
to develop and review the Action Plan between January and June 2022;
WHEREAS, the Action Plan sets goals established that will continue to be tracked to ensure
progress is made related to income levels, number of units, and local occupancy;
WHEREAS, such suggestions are appropriate as a 2022 McCall Area Local Housing Action Plan;
WHEREAS, the draft Local Housing Action Plan was presented at a special meeting on June 10,
2022 to the City Council, Valley County and other community partners;
Resolution 22-19 McCall Local Housing Action Plan
June 30, 2022
Page 1 of 2
WHEREAS, the 2022 Local Housing Action Plan is a guiding document intended to provide for
local housing for the McCall Area. As a guiding document, specific implementation efforts may
require future City Council and/or County Commissioner approval;
WHEREAS, the City of McCall held a duly noticed public meeting regarding adoption of the
McCall Area Local Housing Action Plan was held on June 30, 2022;
WHEREAS, it is recommended that the participating partners bring the final Plan for acceptance
or by their respective organizations; and
NOW, THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of McCall,
Valley County, Idaho that:
The City Council for the City of McCall does hereby approve and adopt the McCall Area Local
Housing Action Plan, attached hereto as Exhibit 1, and does hereby direct McCall City Staff to
pursue the development of affordable local housing according to the provisions therein and
according to the Provisions of the Local Housing Action Plan and McCall area Comprehensive
Plan.
This resolution shall be in full force and effect upon its passage and approval.
Adopted this 30th day of June, 2022.
ATTEST:
°�•��0 74 • ICC I ' �' ►
•
BessieJo W.,:'er, City lerk
Resolution 22-19 McCall Local Housing Action Plan
June 30, 2022
CITY OF MCCALL
Valley County, Idaho
Robert S. iles, Mayor
Page 2 of 2
EX
BIT 1
CCALL kREA
LOCAL HOUSING ACTION PLAN
PREPARED BY: WSW CONSULTING, INC., SMR DEVELOPMENT, LLC; NAVIGATE, LLC; LOGAN SIMPSON
Wald
DEVELOPMENT
NAVIGATE
R M
Y
CONTENTS
Executive Summary 3
McCall Area Local Housing Action Plan 6
1. Plan Objectives and Goals 7
2. Housing Action Strategies 9
Timeline for Implementation 11
Roles and Responsibilities 13
Action Strategy Descriptions 15
Strategies for Future Consideration 32
3. Core Components 37
Housing Organization 38
Action Plan Administration and Coordinator 39
Financing 40
Public Education and Engagement 41
APPENDIX A — Action Plan Process, Definitions and Acknowledgments 42
Definitions 44
Acknowledgments 45
APPENDIX B — Local Housing Incomes and Affordable Price Points 46
APPENDIX C — Local Housing Deed Restriction Recommendations 47
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
WSW Consulting, Inc., SMR Development, LLC; Navigate, LLC; Logan Simpson
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EXECUTIVE SUMMARY
Purpose of the Action Plan
The McCaII Area Local Housing Action Plan outlines a partnership framework to address Local Housing
needs in the McCall Area over at least the next five years. Local Housing is defined as:
Dwellings of all types, that those who live and/or work in the McCall Area can afford to purchase or rent,
serving the entire spectrum of housing needs that are not being met by the housing market.
This Plan was established through the recognition that having diverse and secure housing opportunities at
prices that residents making their living in the area can afford is essential to maintain the health, vibrancy,
and integrity of the McCall Area community, economy, and environment.
The Plan presents a variety of actions to address a range of Local Housing needs, recognizing that there is
no one solution to address the problem.The 2018 City of McCall Housing Strategy estimated that a minimum
of 730 Local Housing units were needed at that time to address housing shortages for local residents
and employees. Based on housing prices and incomes in the McCaII Area in the current year (2022), the
vast majority of Local Housing units need to be priced below current market prices, requiring substantial
subsidies combined with creative programs and incentives to produce needed homes. This should include
a mix of housing unit types to diversify options for residents. More specifically, prices for units intended for
ownership should range between $160,00 and $400,000, while rental units for locals should cost between
$500 and $1,500 in order to meet the range of needs that exist in the community. The actions identified within
this Local Housing Action Plan are oriented around these needs, recognizing that, as Local Housing needs
change, the Housing Action Plan will evolve accordingly.
The Plan is also built upon a partnership framework for accelerating Local Housing in the McCall Area,
recognizing that no one entity can solve the Local Housing challenges — it takes a community to build a
community. Involvement from the public, private, non-profit, institutional, and regional sectors are all needed
to ensure a diverse supply of homes for local residents and employees and sustain a diverse and vibrant
McCaII Area community and economy.
How the Plan was Created
A Local Housing Steering Committee, comprised of McCall Area local stakeholders, combined with technical
assistance from consultants and public input, created this Plan. The 2018 City of McCall Housing Strategy was
used as a base, along with updated local resident income and housing market information through 2022, to
understand the housing needs of residents and employees in the McCaII Area. Strategies to meet housing
needs have been identified and prioritized; roles and responsibilities have been assigned. A timeline for
achieving priority strategies has also been established, recognizing that this Plan will have life beyond this
timeline and will continue to evolve and meet changing Local Housing needs over the long term.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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3
Action Plan Goals
Goals established in the Plan that will continue to be tracked to ensure progress is made, include:
1. Income Levels
Ensuring Local Housing serves the full range of incomes that are not being met by the housing market.
This includes rental opportunities for households earning up to 1 00% of the area median income
("AMI"), or about $60,000 per year, and ownership opportunities for households earning up to 150% AMI
(about $100,000 per year);
2.Number of Units
Producing Local Housing at an aggressive, but achievable, rate of at least 50 units per year on average,
with this goal rising as housing program momentum, funding, and capacity increases; and
3. Local Occupancy
Striving to increase the local occupancy of homes to 40% (i.e., the level in 2010), from the current
estimated 27% of homes.
The graphic on the following page summarizes the strategies that will be pursued over the next five years,
mapped according to the primary or average affordability level that each strategy will address. This graphic
represents the provision of a diversity of housing for community members across multiple income levels and
in various life stages.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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McCaII Area Local Housing Action Plan Bridge
Ci
Low
Income
S35,700
kO
Very Low �
Income <4,
$19,690 Qv
Supportive
Housing
Strategies addressing all levels
,pccessory p Wellin9
uttts
.tax increment
Frna°cr�onvetsion
.Condo
polio( nd Home
.gtRl
Convetsion
Middle
Inc ome
Moderate $59,500
Income
$47,550
Core
Housing
Target
DensityBonu Deferral
e pr
glomebuS
•An exation Yer Assistance
'Land Bank/ y
Philanthrona�ons/
opy
Upper Middle
Income
$71,400
Entry 200%
Homeownership AMI
Source for income am ounts: 2021 US Dept of Housing & Urban
Development (HUD) area m edia n i nc ome limits for a 2 .5 -person
ho use ho ld (i.e ., the average household size in McCall)
" Source: Blue Ribbon Demographics, LLC
Step -Up
Homeownership
300%
High
End
Market
High
Income
$119,000
Sewer District Coordination
Legislative Lobby Group
Public Infrastructure Planning & Investment
Taxes Dedicated to Housing/General Fund
Public/Private/Institutional Partnerships
Deed Restricted Housing (varies based on program)
Above High
Income
$178,500
MCCALL AREA LOCAL HOUSING ACTION PLAN
This section presents the McCall Area Local Housing Action Plan. This Plan will focus Local Housing partners
and increase the ability to meet Local Housing needs in the McCall Area.
The primary components of the Plan include:
1. Objective and Goals
The Plan objective and goals are established to help monitor progress. Goals should be revisited as Local
Housing needs evolve.
2. Action Strategies
The action strategies represent the prioritized strategies that have been developed to meet the housing
objective and goals. The action strategies include defined roles and responsibilities and a timeline for
achievement. This is the "action" part of the Plan.
3. Core Components
The core components represent the core operational needs to implement strategies, administer an inventory
of Local Housing, and track the progress of the Action Plan. This structure is needed for successful
implementation and to ensure continued communication and collaboration of Local Housing partners to
increase the availability of Local Housing in the McCall Area.
The Appendix contains a summary of the Action Plan process, defined terms used in this Plan,
acknowledgments of Plan participants, and specific deed restriction recommendations.
Additional items that should be referenced include:
A. Appendices
The Appendices contain a summary of the Action Plan process, defined terms used in this Plan,
acknowledgements of Plan participants, and specific deed restriction recommendations.
B. Action Plan Work Session Packets
Local Housing Action Plan Committee Packets were created for each of the work sessions, which should
be referenced for more information on strategy best practices, other communities that have implemented
each strategy, and helpful contacts and references that will help inform strategy implementation. These
are available at https://www.mccall.id.us/LocalHousingActionPlan or by contacting the McCall Community
Development Department.
Scan the QR Code Below to See Committee Packets
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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1. PLAN OBJECTIVES AND GOALS
The strategies, partnerships, and actions identified in the McCall Area Local Housing Action Plan are oriented
to help carry forward the community's vision established in the McCall Area Comprehensive Plan, which
states:
McCall is a diverse, small town united to maintain a safe, clean, healthy, and attractive environment. It is a
friendly, progressive community that is affordable and sustainable.
The Action Plan recognizes that Local Housing is a necessary component for fulfilling the community vision
and, as such, presents a variety of actions that address a range of housing needs for employees and year-
round residents in the McCall Area. Because housing markets and Local Housing needs change over time, the
Housing Action Plan will evolve accordingly.
Grounded in this understanding, the following Action Plan objective and measurable goals were established
to monitor the Plan's progress over time and highlight when modifications may be needed.
Overall Objective
The overall objective of the McCall Area Local Housing Action Plan is:
`► To ensure that McCall remains a diverse resident community,
�•► by working together,
to provide a variety of quality housing types,
that are affordable for local residents and employees,
through a range of strategies and programs,
`► while recognizing local and regional impacts and opportunities.
The McCall Toaster was moved on June 6 to be used for workforce housing in the community
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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Measurable Goals
Measurable goals were established to provide aggressive, but achievable, targets for improving Local
Housing availability in the McCall Area. The following goals for meeting Local Housing needs will be tracked
to monitor progress and revisited as Local Housing needs evolve:
Income Levels'
Facilitate Local Housing for the full range of incomes in need and for various life stages to maintain a
complete and diverse community.
In McCall, this currently means:
» Rentals for households earning under 100% AMI, which is about $60,000 in 2021; and
» Ownership housing for households earning less than 1 50% AMI, which is about $100,000 in 2021.
Number of Units2
Provide an average of at least 50 Local Housing units per year over the next five (5) years (through 2027) in
the McCall Area, and more in the region, through a combination of new development, redevelopment, and
improving the condition and use of existing homes. Grow yearly average housing production over time as the
housing program gains capacity and momentum.
Local Occupancy'
Strengthen our local resident base by increasing the percentage of housing stock in the McCall Area that is
occupied by local employees and year round residents from the current 27% to 40% (i.e., occupancy levels in
the year 2010).
1. The "income levels" objective will be tracked by monitoring how much Local Housing is provided for the various income
levels and comparing this to the distribution of housing needs as identified in Housing Bridge, above. This objective will be
updated over time as housing markets, price points, and local resident and employee needs change.
2. Since 2010, less than 100 housing units per year have been constructed in the McCall Area. To achieve 50 Local Housing
units per year (which, by definition, will be priced below market), this will require a combination of new construction, as well
as preservation and conversion of current housing units into local occupancy. For the purpose of tracking progress toward
meeting this goal, any new units produced, converted to local occupancy, and preserved through the strategies identified in this
Plan, whether permanently deed restricted as Local Housing or not, should be included for the purpose of tracking progress
toward meeting this goal (see the Acton Plan Administration section, below).
3. The percentage of dwelling units in the McCall Area that are occupied by year-round residents dropped from 40% in 2010 to
27% in 2020 (source: Census ACS). This objective seeks to reverse the erosion of the year-round resident base, such that at
least 40% of the housing units in the area are again occupied by year-round residents.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022 _
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2. HOUSING ACTION STRATEGIES
Focused Strategy Refinement
Recognizing that there is no silver bullet — that no one housing strategy can do it all — the Local Housing
Committee considered about 40 different strategies that could be used to address Local Housing needs in
the McCall Area.
The reviewed options were based on strategies that have been used in high -amenity communities throughout
the nation to address a variety of Local Housing needs. This process is described in more detail in the
Appendix.
Of the different options reviewed, 25 of the options were prioritized for implementation over the next five
years. This includes a mix of new strategies, as well as existing strategies that can be modified for improved
effectiveness. Prioritization was required because neither the city nor the implementing partners have the
capacity or resources to implement every strategy at once, nor would every strategy necessarily be effective
in the McCaII Area. The non -prioritized strategies are not lost, however. As the city and partners expand their
capacity and successes, more strategies can be brought into the housing program to increase the Plan's
impact.
The strategies identified for implementation over the next five years cover a range of options and target a
variety of incomes and housing types, ensuring that Local Housing needs are being addressed from multiple
angles. This includes:
Homebuyer Assistance
Second Home Conversion to
Long Term Rental
Sewer District Coordination
Build Homes on Public/
Institutional and
Employer Assisted
Housing/Programs
USINt
ROGRAMS
etting peopll
into homes
LAND +
PARTNERSHIPS
Working together
Taxes Dedicated to Housing
State/Federal Grants/Loans
Tax Increment Financing
Private Donations/Grants
FUNDING
Paying for it
INCREASING
COMMUNITY
HOUSING
INVENTORY
I
REGULATIONSro
Making it Happen
INCENTIVES
Helping it
happen
PRESERVATION
Keeping what we
create
Annexation policy
Short Term Rental Management Policies
Legislative Lobby Group
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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Defer/Waive Fees to Build
Density Bonus
Remove Regulatory Barriers:
•Process/Scheduling/Ombudsman
•Streamlining
•City and Sewer Code Coordination
Accessory Dwelling Units
Public Infrastructure Planning
Permanent Deed Restrictions
Housing Organization
Acquisition/Deed Restriction of
Market Units
Condominium Conversion Policy
Mobile Home Park Affordability
9
Housing Needs Guide Implementation
The graphic on page five of this Plan (Executive Summary — McCall Area Local Housing Action Plan Bridge)
summarizes the housing strategies that will be implemented over the next five years and the primary
affordability level that each strategy will address.
This section provides more detail on the developed strategies, to -date, as follows:
» Timeline for implementation:
Shows the anticipated schedule for implementation for each Local Housing strategy over the next five
years.
» Roles and responsibilities:
Identifies the McCall Area entities, organizations, and stakeholders that will be responsible for
implementing each strategy. Lead and supporting roles are identified.
» Action strategy descriptions:
Provides more detail on each prioritized housing strategy, presented in the order shown on the
timeline. A definition is provided for each strategy, along with a summary of the proposed action steps.
A table of non -prioritized strategies is also provided, many of which will be revisited for potential
addition to the Action Plan as the housing program matures, funding and capacity is added, and
community needs change.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TIMELINE FOR IMPLEMENTATION
The housing strategies identified for implementation within the next five years are shown on the timeline
on the following page. Strategies will be monitored and modified as needed to ensure effectiveness. This
timeline was based on an interactive activity with the Action Committee to facilitate discussion about the
most appropriate time frames for strategy implementation.
Factors affecting timing
The timeline considers the current resource, management and capacity limits in the McCall Area, along with
existing momentum. It also considers stepping stones - what needs to happen before later strategies may
be implemented. In short, the timeline recognizes that it is not just what you do, but when you do it, that can
make or break the success of a particular strategy. Considerations factoring into the timing include:
1. Building blocks: some actions need to happen before others can be successful
2. Current capacity: what can we do now (e.g., available staff, funding)
3. Ease of implementation: political and capacity limits
4. Extent of impact: how much housing can it provide
5. Political capital: will this create a success we need in order to build up support for other strategies
Finally, the timeline is based on the premise that additional capacity - staffing, financing, resources, etc. -
will be added in the McCall Area over time. Once initiated, all strategies will require ongoing maintenance,
monitoring, reporting and management. Additional resources will be needed to operate and evolve the
program and implement more strategies.
Interpreting the timeline
The timeline on the following page shows when strategies will operate in "action phase" (dark blue) and
"ongoing phase" (light blue).
Strategies in the "action phase"
Partners are ramping up efforts, growing resources (e.g., staff, funding, etc.), building
collaborations, and doing the research and work necessary to get the strategy in place and
operational. This phase will require the most capacity.
Strategies in the "ongoing phase"
The strategy is in place and management and monitoring is occurring.
What this illustrates is that work on each strategy never stops - partners are either actively establishing the
strategy and ramping up its operation or are doing the day-to-day tasks needed to monitor and manage its
operation once established.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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1
2
3
4
5
6
7
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
Timeline of Priority Action Strategies
Strategies
8
9
0
1
2
3
TYPE
2022
2023
2024
2025
2026
Longer term
2027 ->
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sewer District Coordination (Pri oritize Local H ousing)
Partnerships
Key:
Action Phase
Housing Organizati on - create, fund, staff
Preservation
Ongoing Phase
State ARPA Funds
Funding
action phase
timing depends
depends upon
upon capacity
policy proposals,
(housing o
timing depends
legislative schedule
ganization) and funding
may depend upon
upon type of
may depend up on
cycle
new funding approval
tax/LOT vote year (2028?)
new funding approval
Deed Restricted H ousing (P ermanent)
Preservation
Employer Assisted Housing
Partnerships
Public/Private/Institutional Partnerships (land f or h ousing)
Partnerships
Existing LOT (and/or General Fund) D edicated to H ousing
Funding
STR/Second Ho me Co nversion to Long Term Rentals
Program
Annexatio n Po licy
Regulations
Fee Waivers & Deferrals
Incentives
Land Banking (Acquisitio n) fo r Housing - Evaluati on
Partnerships
Public infrastructure investmen t planning
Incentives
Density Bon us (code mo dification s, co mmunity support)
Incenti ves
Legislative Lo bby Gro up
Partnerships/Regulations
Federal an d State Funding Opportunities (Loans, Grants, LIHTC)
Funding
STR Rental Management Policies
Regulations
' Condo Co nversion Policy
Preservati on
I Tax Increment Financing (TIF) Participation Guidelines
Funding
) Mobile Home Park Affo rdability
Preservation
Remo val of Regulatory Barriers
Incentives
l Land Banking (Acquisition ) for Ho using - Purchase
Partnerships
Accesso ry Dweling Units (ADUs)
Incentives
3 Homebuyer Assistance
Programs
) New Taxes Dedicated to Hou sing
Funding
Acquisitio n of Deed Restriction on Market Rate Un its
Preservation
i Private Do nations / Philanthro py
Funding
7 Rehab and Weatherizatio n
Preservation
Timeline of Priority T ools
Abbreviations: ARPA = American Recovery Plan Act funds, LOT = Local Option Tax, LIHTC = Low Income Housing Tax Credits
*Strategies that are ongoing
N
ROLES AND RESPONSIBILITIES
The Housing Steering Committee recognized the need for a coordinating entity to facilitate implementation
and provide management and coordination for the Local Housing program. The city of McCaII and/or the
recommended new McCall Area Housing Authority are in the lead for all except two (2) of the strategies,
sometimes in combination with other entities. Leaders for the remaining strategies are engaged community
members with existing momentum, skills, and connections to facilitate implementation. In all cases, the
leader of each strategy will strive to form community -member work groups and committees with the skills,
contacts and interest to undertake implementation. Joint implementation by community members spanning
public, private, non-profit, and institutional entities provides the ability to share resources and capacity while
leveraging successes for a more robust and effective housing program.
Because several housing strategies rely upon additional capacity/staffing through the formation of a housing
organization, or, at a minimum, staff at the city, the above timeline may need to be adjusted based upon when this
capacity is added.
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2
3
4
5
6
7
8
9
1
1
1
1
1
1
1
1
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1
2
2
2
2
2
2
2
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Matrix of Responsibilities: Action Strategies
Strategies
TYPE
Lead
Support
Sewer District Coordination (Prioritize L ocal Ho using)
Partnerships
Sewer District/City
Sewer District/City
Housing Organization - create, fu nd, staff
Preservation
City
County
State ARPA Funds
Funding
Sewer District/City
Sewer District/City
Deed Restricted Housing (Permanent)
Preservation
City
Employer Assisted Housing
Partnerships
Chamber, West C entral EDC
Employers (large and small), The Housing
Company
Public/Private/Instit utional Partnerships (land for housing)
Partnerships
City/Housing Org. when formed
Forest Service, School District, St. Lukes,
Employers
Existing LOT (and/or General Fund) Dedicated to Housing
Funding
City/Housing Org. when formed
STR/Seco nd Home Conversion to Long Term Re ntals
Pr ogram
Property Mgt (Kelly Hill)
City/Housing Org . when formed, Employers,
Chamber
Annexation Po licy
Regulations
City
County
Fe e Waive rs & Deferrals
I ncenti ves
City
Developers, Sewer District
Land Banking (Acquisitio n) fo r Housing - Evaluation
Partnerships
City/Housing Org . when formed, County
Chamber/Employers, MRA, aligned with
public/private partnerships
Public Infrastructure Investment Plan ning
Incentives
City/Sewer District
MRA
Density Bonus (code modifications, community support)
Incentives
City (code)/H ousing Org. when formed (community)
Sewer District, Developers, Citizen Local
H ousing support group, County
Legislative Lo bby Grou p
Partnerships/Regulations
County, City
Federal and State Funding Opportunities (Lo ans, Gran ts,
LIHTC)
Funding
Housing Org. when formed
Developers, Stakeholders
STR Rental Management Policies
Regulations
City, County
Property managers, Realtors
Condo Co nversion Policy
Preservation
City
County
Tax Increment Financing (TIF) Participation Guidelines
Funding
MRA/City
1 Mo bile Home Park Affordability
Preservation
Housing Org. when formed
LEAP Housing/ROC USA
I Remo val of Regulatory Barriers
Incentives
City
Developers, County
Land Ban king (Acquisition) for Housing - Purchase
Partnerships
City/Housing Org ., County
Various partners
Accessory Dwelling Units
Incentives
City
Homebuyer Assistance
Programs
Housing Org . when formed
City, IHFA, Property Management, Realtors
I New Taxes Dedicated to Ho using
Funding
City/Housing Org. when formed
Citizen supp ort group, Employers,
Developers
Acquisition of Deed Restrictio n on Market Rate Units
Preservation
Housing Org. when formed
City, Property Management, Realtors
Priv ate Donations / Philanthropy
Funding
Housing Org. when formed
Chamber
' Rehab and Weatherizatio n
Preservation
Housing Org. when formed
Strategies are sorted in the same order of the timeline presented above.
Abbreviations: City = elected officials, advisory boards, and staff; Sewer District = Board and staff; Housing Org. = housing organization;
MRA = McCall Redevelopment Agency
ACTION STRATEGY DESCRIPTIONS
This section provides a summary of the Action Strategies.
Strategies are presented in the same order as the timeline and roles tables and summarized as follows:
Priority Action Strategies:
Each priority action strategy is summarized and presented in order of implementation. A definition is provided
for each strategy, along with a summary of the proposed actions.
Potential Strategies for Future Consideration
A list of strategies that were evaluated, but not yet prioritized for implementation. These strategies may be
considered for later updates to the Plan or as opportunities arise.
Note: The strategies with a (*) indicate that the strategy currently exists, meaning that suggested actions are
intended to improve the reach or effectiveness of the strategy.
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TOOL DEFINITION PROPOSED ACTIONS
Sewer District
Coordination
Aligning sewer
district capacity
and capital
improvements
planning with Local
Housing needs and
City Local Housing
initiatives.
1. Continue facilitated discussions between City and Sewer
District.
2. Form committee to explore city and sewer district code
inconsistencies and disconnects. Concerns raised:
» When a hookup is required: City and Sewer District
definitions differ. They should be aligned.
» Evaluate metering policies to allow shared metering for
apartments, multi-plexes (i.e., units that will not be sold
individually). See also Condominium Conversion strategy.
» Coordinate sewer modeling/capacities with zoning, density
bonus incentives, ADU policy, Local Housing needs within the
City.
3. Coordinate to raise funds for sewer improvements (DEQ,
ARPA, tax, bond, etc.)
» Big Sky, MT, example (1 % resort tax increase for sewer
district infrastructure with 500 connections reserved for Local
Housing)
4. Coordinate sewer Master Plan with McCall Area
Comprehensive Plan for consistency.
5. Prioritize Local Housing:
» Gather data to inform policy. overlay sewer basin capacities
with Local Housing development opportunities and expected
rate of development to illustrate ability for flexibility in sewer
density policy, and where.
» City Planning Department to introduce policy to Incorporate
Local Housing and Local Housing incentive programs (e.g.,
density bonus, ADU, etc.) in sewer district capacity/modeling.
» Explore changes to sewer policies. City shall provide
direction to the District to prioritize Local Housing. This may
include:
• Adopt more flexible policy that reflects realistic building
rate and planned system improvements rather than requiring
one connection per lot be available at all times in City limits.
This change may occur throughout the District or at least in
primary Local Housing locations/basins.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL DEFINITION PROPOSED ACTIONS
Sewer District
Coordination
Cont.
• If necessary, provide assurance that sewer capacities will
not be exceeded by new development prior to completing
planned improvements (e.g., connection transfers between
basins, build -out rate/modeling, near -term development
limits).
6. Scale sewer hookup fees to incentivize smaller units — per
square foot or per bedroom fees rather than per unit. Work
with City on fee reimbursement or reduction program for Local
Housing (see Fee Waiver/Deferral strategy).
7. Annexation should be consistent with the McCall Area's Future
Land Use Plan map from the Comprehensive Plan. Projects
should include Local Housing as a requirement for extension
of sewer services per an Annexation Policy.
Housing
Organization
An organization
dedicated to
addressing
a community's
housing needs and
stewarding housing
units created.
Responsibilities may
include action
plan administration,
portfolio
development,
stewardship of units
created, fundraising,
and community
outreach.
Organizational
structure
can be a
governmental
department, Housing
Authority, or non-
profit
organization (e.g.,
Community Land
Trust).
1. Establish a McCall Area Housing Authority to provide
geographically targeted services within the city and the city's
area of impact and avoid any history associated with the
former regional efforts.
» City resolution declaring the need for a Housing Authority,
including full spectrum of need (example: Blaine County
Housing Authority)
» City Council appoints commissioners. Explore appointing a
commissioner to represent area of impact
» Establish funding source: at least 3 -years of seed money
(est. $250,000/year) to start and staff.
2. Determine clear roles and responsibilities of the Housing
Authority, including:
» Manage/steward Local Housing units
» Develop Local Housing/acquire land
» Raise funds/issue bonds
» Education and outreach; support Local Housing advocacy
leaders
» Action Plan administration
» Specified action plan strategy implementation
3. City and Housing Authority enter into an intergovernmental
agreement defining roles and responsibilities of each party.
» City may provide funding, use of City Attorney for legal
counsel, etc.
» County will do the same if they desire services from the
Housing Authority.
4. Secure funding and hire a full-time Executive Director (ED)/
Housing Professional providing dedicated staff to implement
defined roles and responsibilities.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL DEFINITION
PROPOSED ACTIONS
State ARPA
Funds*
Deed
Restricted
Housing*
(Permanent)
State has allocated
Federal American
Rescue Plan Act
funds for a $50M
Workforce Housing
Fund. The Fund
is intended to be
administered by
Idaho Housing
Finance Agency
(IHFA). Applications
are due in August
2022 and expire at
the end of 2026.
Preference is given
to projects that need
gap financing and
have committed
local matching
funds.
Dwelling units
permanently
restricted to protect
the purpose of the
investment used
to create the unit.
Restrictions vary
based on policy
intent. In rising and
high -cost housing
markets, deed
restrictions often
include limitations
on occupancy (local
employee/resident),
income level, and
rent/resale prices to
retain affordability.
Research and Advocate for ARPA and Infrastructure Funds
for McCall. This is a short-lived program and funds are now
available.
Explore ability to tie funds for sewer needs along with Local
Housing.
Reach out to IHFA to learn the rules of ARPA and how it may
relate to Local Housing projects, including those that may be
stalled due to high costs.
Identify sites and projects in McCaII or Valley County that
could utilize ARPA funds. This includes working with the
School District to determine if their parcel at Stibnite St. would
be a good fit to apply for these funds.
Identify a source of matching funds to improve
competitiveness (LOT, general fund, etc.).
Modify existing deed restrictions to make more user friendly,
improve clarity of terms, increase transparency to developers
and owners, and provide ability to manage the desired
occupancy, use, and resale of units.
Establish a methodology to set initial rental rates and sales
prices to ensure initial affordability and set expectations for
developers seeking incentives to produce Local Housing.
Utilize a unique deed restriction for ownership vs. a rental
product to eliminate management challenges. Maintain a
permanent restriction on ownership and consider a term -limit
on rental apartments.
Align deed restrictions with other policies (e.g., ADU, fee
waiver and density bonus incentives)
Maintain the general occupancy criteria, minimum hours
worked for a McCall business, prohibition from short-term
or vacation renting, and caps on rental rates and sales price
appreciation.
Increase management capacity by reconstituting a McCaII
Area housing organization (see Housing Organization
strategy).
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL
DEFINITION
PROPOSED ACTIONS
Deed
Restricted
Housing*
(Permanent)
Emphasize customer service to end users (e.g., buyers,
lenders, sellers, renters, etc.), such as through one point of
contact.
Establish Housing Guidelines to define and guide deed
restriction administration (see Appendix C for more
information)
Employer
Assisted
Housing*
Employer Assisted
Housing (EAH)
means providing
housing support
to employees.
Employers can
provide land
and partner in
development of
housing. EAH
is often direct
employee support,
such as help with
finding housing,
down payment,
rent/mortgage,
relocation, housing
stipend, or master
leasing/providing
rentals
Designate a leader/convener to bring employers of all sizes
together.
Learn from and build upon existing partnerships and
programs, such as Brundage and Shore Lodge — development,
shared seasonal housing, housing staff/coordinator.
3. Educate/ message/ outreach to the community.
4. Help smaller employers address housing issues:
» Technical assistance
» Match with programs (rent/down payment assistance, etc.)
» Match employees with units (see STR Conversion strategy)
Track/educate on progress, opportunities, and outcomes.
Provide technical assistance to produce housing — City
Ombudsman.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL DEFINITION PROPOSED ACTIONS
Public/Private/
Institutional
Partnerships*
Public/institutional
organizations
partnering with
the private sector
for development
expertise to build
Local Housing on
publicly owned
land. May be vacant
or under-utilized
land. May also
include institutional
properties.
In Idaho, Cities and
public agencies have
limited flexibility
when selling land.
IHFA (Idaho Housing
and Finance
Association), a
public housing
authority, or a
redevelopment
agency have
more flexibility to
dispose of land at
below market rates
with restrictions
to incentivize
Local Housing
development.
Facilitate partnerships between public agencies/institutions:
School District, MRA, City; USFS; state; St. Luke's; IHFA; future
housing organization.
Establish criteria to prioritize site(s) for Local Housing from all
partners.
Understand partner and site constraints with respect to land
disposition, acquisition, development for Local Housing.
Issue Request for Proposals with specific Local Housing
outcomes. Complete due diligence before issuing proposals;
learn from Davis RFP process.
Through RFP, provide clear developer expectations, desired
development/Local Housing requirements, and assistance/
incentives that can or will be provided (e.g., City fee
reimbursement, site improvements, tax reductions, etc.).
Keep prioritized list for future housing opportunities.
Considerations:
» School District has identified lands for sale. Reevaluate
for Local Housing potential, partnerships, feasibility. Selling
land will likely not provide enough funds to buy/build
Local Housing units in the McCall Area. Investigate long
term ground lease at below market rate for Local Housing
development/partnership with another public agency.
» USFS potential; typically long process, requires local
champion to ensure success. Learn from other successful
partnerships (e.g. Summit County, CO).
In regard to "The Toaster;" confirm that it will not adversely
impact the future developability of the city site on which it will
be located.
General Funds* An annual or
occasional budget
allocation often to
support staffing, pre -
development, and
gap financing.
In lieu of or in addition to LOT allocation (below), allocate a
dedicated amount of city's general fund to Local Housing each
year — form a Local Housing Fund.
Establish allocation criteria to inform use of the city's Local
Housing Fund.
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2 0
TOOL DEFINITION PROPOSED ACTIONS
Taxes
Dedicated to
Local Housing*
A dedicated funding
source for Local
Housing. May
include local option
sales tax (LOT),
sales tax, property
tax, short-term rental
tax, real estate
transfer, excise
tax, vacancy tax,
unit demolition or
conversion fees.
Voter approval
required in most
states. Approval
requires extensive
public education.
LOT approved in
2019 on lodging
that can be used for
housing in McCall.
Use for housing is
discretionary.
Near term:
1. Allocate a specified percentage of the annual LOT allocation
towards Local Housing for the life of the LOT (through 2028 to
create more funding certainty. City Council action required.
Create a transparent process for LOT housing fund application
and distribution.
» Educate LOT Allocating Board on Local Housing and its
importance to McCall.
» Ensure a member of the Housing Committee is appointed to
the LOT Allocation Board.
» Establish allocation criteria that considers: scoring system,
leverages funds, requires Local Housing deed restriction that
prioritizes long-term affordability.
Make sure to use all funds from the LOT locally and ensure
there are not unused funds that will revert to the State.
Consider creative processes, such as selecting first and
second tier housing projects from funding applications. If the
first tier project does not move forward, then award funds to
the second tier project so that the funds do not go unused
(legal review).
Longer term:
When the LOT is up for a vote (2028, if not before), consider an
increase LOT with the increased portion specifically for Local
Housing or an additional LOT dedicated to housing. Evaluate
whether LOT can be increased on short-term rentals alone
(legal review).
Explore other opportunities for consistent local source of
funds — for example sales tax, property tax, real estate
transfer tax, etc.
Coordinate vote with a comprehensive education campaign;
start early!
When fixed amount of LOT for housing is established through
administrative or voter approval, establish how to (criteria) and
who administers funds.
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Z
TOOL
DEFINITION
PROPOSED ACTIONS
Short-term
Rental/
Second Home
Conversion
Program
Unlocking short term
rentals and second
homes for long
term rental to local
residents through
outreach, education,
and/or incentives.
Learn from successful programs:
» Landing Locals (Truckee, CA); technical assistance available
» Big Sky Community Housing Trust (MT), rent local programs
Expand success of existing property managers — scale up
program to reach more potential properties.
Partnership opportunity among employers/chamber, local
property managers, city. pre-screened tenants, employer rent
guarantees to property owners, incentives (property tax break,
paid subsidy)
Evaluate Local Option Tax in relation to STR:
» Potential source for financing STR-to-long term rental
conversion incentive
» Can LOT be increased on STR alone (legal review)
Explore other incentives (e.g., reduced property tax, vacancy
bridge loans etc.).
City
Annexation
Policy
Negotiating
restricted Local
Housing as part
of annexation
agreements. Policy
based.
Annexations of land
upon request by the
property owner(s)
for residential
development
offer the greatest
opportunity to
ensure that new
development
includes Local
Housing.
Develop and adopt annexation policy requiring at least 30%
of homes developed on annexed property be deed restricted
Local Housing.
Considerations:
» Include affordability requirements in deed restriction to
ensure Local Housing is affordable for intended occupants
» Produce Local Housing for ownership, not just rentals
» Balance the Local Housing percentage policy (e.g., 30% or
more) with state regulatory concerns/conservative legislature
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL DEFINITION PROPOSED ACTIONS
Fee Waivers/
Deferrals*
Water/sewer,
building permit,
impact or other fees
waived in part or
whole or deferred
until occupancy/
sale to reduce
upfront cost to build.
General funds or
other source need
to cover cost if fees
waived or reduced
and/or for the
deferral period.
Current Local
Housing Incentive
reimburses up to
$10,000 in fees to
deed restricted Local
Housing units. Has
been used, but can
be improved.
Review for other fees that are suitable to reimburse/defer.
» If the city adopts other impact fees (schools, roads, etc.),
include deferral/reduction/exemption for Local Housing.
» Work with sewer district to allow reduced fees for Local
Housing. Options:
• Sewer district to model fees for Local Housing and see if
lower cost is justified;
• Fee still paid to sewer district, but from a source other than
the developer (e.g., city reimbursement)
Identify and secure a funding source to replace waived/
reduced fees: see Funding strategies (taxes, etc.)
Set qualifications to receive reimbursement. Ensure homes
that get reduced/reimbursed fees benefit the community
(affordable Local Housing, LIHTC, etc.).
Consider best practice fee modifications to incentivize desired
development (e.g., smaller, lower cost homes)
» City planning fees are charged on a per square foot basis,
which is a best practice to ensure smaller units pay lower
fees — evaluate other fees accordingly, including sewer permit
fees (e.g., per square foot or per bedroom).
Evaluate the ability to scale fees based on value/type of
development (e.g., higher fees for luxury and vacation homes,
lower fees for Local Housing)
Land/Land
Banking*
Acquiring land
for eventual
Local Housing
development.
Acquisition may
occur through
purchase, trades, life
estates, donation
(non -profits), in -lieu
requirements.
Reference table
below for current
identified lands.
Establish criteria to prioritize sites(s).
2. Inventory potential opportunities.
3. Understand constraints and costs of mitigation.
4. Complete due diligence (land use, Environmental Phase I, title
review, etc.)
Include sites that are vacant, underutilized or ripe for
redevelopment.
Keep prioritized list of sites for future housing opportunities.
Create an acquisition plan for sites.
Determine disposition plan for appropriate sites. Evaluate how
to use proceeds/leverage funds to create Local Housing units
before selling land. (Lenora property etc.)
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL
DEFINITION
PROPOSED ACTIONS
Public
Infrastructure
Planning/
Investment*
A Capital
Improvements Plan
(CIP) is a plan for
the repair and/or
extension of city
services such as
streets, sidewalks
and drainage
improvements; gas
and electric/ etc.,
where appropriate.
Would include
coordinating with
the Sewer District for
water/sewer needs.
Develop a CIP to address infrastructure in priority areas for
Local Housing development. This can pair well with the work
undertaken through the Sewer District Coordination strategy.
Alternative: identify/set aside funds to assist Local Housing
developments with infrastructure needs/improvements.
Consider planning for a public parking structure to open up
parking lots for housing; provide potential Local Housing
shared parking opportunity (e.g., Winter Park, CO, Hideaway
Place Apts utilized this strategy).
Density Bonus*
Providing additional
density in exchange
for Local Housing.
Must be large
enough to entice
development yet
small enough
for livability and
compatibility. Not
effective if existing
zoned densities
are high (e.g., when
zoned at a level
where developers
have trouble
building to existing
densities).
Existing City policy
allows up to double
density for Local
Housing.
City policy is effectively attracting Local Housing projects.
Primary barriers:
» Sewer District does not recognize added density. See Sewer
District Coordination strategy.
» Neighbor push back on density/Local Housing.
Remove density as a public discretion issue.
» Institute ministerial/administrative approval of additional
Local Housing density based on objective standards. See
Boise Housing Bonus Ordinance.
• Objective standards may be tied to location (city centers,
transition areas), available infrastructure (roads, parking),
etc. Density bonus may be scaled depending upon location/
objective criteria.
» Consider form -based codes/floor-area-ratio (FAR) standards
(focus on form/scale rather than density)
Proactively address concerns:
» Community education. Community support group.
Elected official education. Site visits, graphic representations
of density.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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TOOL
DEFINITION
PROPOSED ACTIONS
Legislative
Lobby Group
Form a coalition
to promote, or
influence legislation
supportive of
community and
Local Housing
needs.
Participate in the Idaho Mountain Resort Lobby Group.
Support more flexibility for jurisdictions to facilitate Local
Housing and discourage restrictive legislation. Considerations:
short term rentals, inclusionary zoning, local/flexible funding
options.
Federal and
State Grants/
Loans — LIHTC,
CDBG, HOME,
National
Housing Trust
etc.*
Federal and state
grants/loans
for affordable
housing, generally
for construction
of units. These
include CDBG,
HOME, and USDA/
Rural Development.
Can typically only
serve low-income
households at or
below 80% AMI.
The funds are
competitive and
require complicated
grant application
and administration
process.
Sophisticated
developer required.
"Prime the pump" by working with known developments or
developers to confirm projects meet funding requirements.
Educate developers to apply for and utilize these federal and
state grants/ loans (ombudsman approach).
Identify sites and projects in the McCaII Area, including those
that may be underutilized or ripe for redevelopment. HOME
and CDBG can be used for development, redevelopment.
Create relationship with IHFA, to understand their programs
and how to collaborate with them. This may include
educational seminars or training with IHFA.
Good role for city, county, and eventually the housing
organization when staffed.
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TOOL
DEFINITION
PROPOSED ACTIONS
Short-term
Rental
Management
Policies*
The ability to
regulate/prohibit
short term rentals is
limited in Idaho (see
Id. St. Code § 67-
6539). Regulations
typically seek to
preserve local
neighborhoods and
resident housing
opportunities,
reduce transient
occupant impacts,
and address
lodging/hotel
business concerns.
Short-term rental permit changes are in process.
Adopt additional changes:
» Prohibit short term rentals in new developments and
annexations
» Scale permit fees based on number of bedrooms and/
or whether properties are rented by an owner -occupant or
investor
» Limit the number of investor -owned rentals (i.e., conduct
legal review of Sandpoint, Idaho, requirements)
» Prohibit short-term rental of Local Housing
Work with Idaho Mountain Resort Lobby Group to support
more flexibility for jurisdictions to regulate short-term rentals
and discourage restrictive legislation.
Condominium
Conversion
Policy
Limiting or
prohibiting
conversion of
apartments to
condominiums
to retain rental
housing. May require
some portion of
converted units
to be restricted
Local Housing;
provide first right
of refusal of sales
to apartment
occupants; impose a
conversion fee that
goes into a housing
fund; among other
conditions.
There are only two apartment complexes in McCaII and
both are federal programs that are not at risk of losing their
restrictions until the late 2030's.
Tie a condo conversion policy to Local Housing incentive
programs to prohibit the conversion of multi -family rental to
ownership.
Can be linked with opportunity for shared sewer hookups
rather than requiring individual metering (see Sewer District
Coordination strategy).
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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26
TOOL DEFINITION PROPOSED ACTIONS
Tax Increment
Financing*
Tax Increment
Finance (TIF) is a
finance tool that
exists through
the McCall
Redevelopment
Agency (MRA)
and can be used
to invest in public
improvements and
stimulate economic
development.
Typically, property
taxes from a specific
urban renewal area
or district broadly
defined as "blighted"
are redirected for
a defined period of
time. MRA's recently
created Downtown
West Urban Renewal
Area includes
housing in its plan.
Plan for Local Housing opportunities within the existing and
future Urban Renewal Area(s).
Create a transparent application process (e.g., participation
guidelines) for developers seeking to utilize TIF that
prioritizes Local Housing. Review Boise, Idaho Urban Renewal
Participation Guidelines for ideas.
Educate interested developers and landowners (within URA) so
they understand the guidelines, when created.
Study additional URA areas, specific to whether other public
agencies (USFS, School District, or state) have land they are
going to sell and develop.
Mobile
Home Park
Affordability
Preserve long
term mobile home
affordability, quality,
and stability for
mobile home park
residents.
Several mobile home parks exist in the McCall Area providing
'naturally occurring' Local Housing and are at risk of
redevelopment into vacation or part-time occupancy.
Research options such as tenant empowerment and
opportunity for resident or public ownership. Seek Resident
Owned Communities (ROC) information/technical assistance;
LEAP charities began a ROC affiliate in Boise, ID.
Consider condition of mobile homes and infrastructure.
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TOOL DEFINITION PROPOSED ACTIONS
Removal of
Regulatory
Barriers
Updating/modifying
code provisions
and procedures
that impair housing
development.
For example,
removing dual
approval processes,
ensuring codes
are consistent,
simplifying
applications.
Complete code
review and rewrite
might be required.
Make process more predictable, transparent, useful and
ensure codes produce what is wanted.
Form committee to explore code inconsistencies and
disconnects.
Include all codes in review: City Building, Zoning, Subdivision,
etc. and Sewer District
Concerns raised:
» Public process and scheduling is complicated. A City
Ombudsman approach to navigating entitlements and
permits can help.
» Streamlining public approval processes. May include
ministerial/administrative approval of Local Housing
density bonus and objective design standards (i.e., reducing
components that require public input/review). Example: Boise,
Id, Housing Bonus Ordinance.
» Disconnect between City and Sewer District definitions,
requirements, policies. See Sewer District Coordination
strategy.
Accessory
Dwelling Units*
An ADU is a second
smaller home
sharing a lot with
a single-family
or townhome
residence. Some
examples of
ADUs include an
apartment over a
garage, a tiny house
in the backyard,
or a basement
apartment.
Increasing the number of lots on which ADUs are permitted
encounters the same sewer district barriers as the density
bonus policy. Density bonus will have more impact; move ADU
to lower tier if it is necessary to pick one. See Sewer District
Coordination strategy.
Best practices for an effective Local Housing ADU program
include:
» Deed restrict units that receive an incentive/public break to
build to ensure community benefit.
» Decrease the cost of ADUs (i.e., permitting, fees, parking
regulations, hookups).
» Make pre-engineered ADU designs available for free.
» Review building codes to allow tiny homes as ADUs
» Allow administrative approval; only building permit required.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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28
TOOL DEFINITION
PROPOSED ACTIONS
Accessory
Dwelling Units*
Cont.
Unless ADUs are
deed restricted to
require that they
be used for Local
Housing, their
impact on creating
more homes for
residents is low.
ADUs that are deed
restricted for use
by residents and
employees are
appropriate in many
neighborhoods,
yet compliance
monitoring is
needed.
Most mountain communities restrict ADU size to no more
than 800 to 1,200 square feet to minimize their impact on
neighborhoods. May allow larger ADUs if deed restricted Local
Housing.
Homebuyer
Assistance*
Down payment
assistance of
grants or second
mortgages for
qualified buyers.
Can be used for
restricted or market
units.
Research Idaho Housing and Finance Association (IHFA) down
payment program.
» IHFA house price cap and income limits likely too low for
housing stock in the McCall Area.
Establish a down payment assistance program unique to
McCall using the Big Sky, MT, and Truckee, CA, programs for
guidance. Program specifics:
» Seek local funding for this program to serve households up
to 150% AMI, such as Community Reinvestment Act funds
through local banks, local option tax, State Housing Trust
Fund, and philanthropy.
» Define program: loan or grant, amount, income caps, loan or
grant amount, repayment terms, etc.
» Consider combining with other incentive tools to increase
inventory.
» Work with employers to assist employees. Technical
assistance, loan/grant options, administration, etc.
City can manage until housing organization in place.
Outreach! Market program and availability - lenders, real
estate agents, employers/employees, property managers,
community.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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29
TOOL
DEFINITION
PROPOSED ACTIONS
Acquisition
of Deed
Restriction on
Market Units
Usually involves
investing public
funds to purchase
deed restrictions
on market rate
properties. Inability
to obtain condo
mortgages can
result in units being
rented. Public sector
purchases can drive
up prices for low -end
market units.
Explore acquiring market units to preserve occupancy of
existing housing stock for Local Housing.
Target middle -income households with this tool and consider
combining with down payment assistance.
Use to preserve both ownership and rental options, as well as
long-term affordability.
Seek local funding to serve households up to 150% AMI, such
as local option tax and philanthropy.
Considerations:
» Competition for a limited supply of inventory is a challenge.
» Example programs: Vail InDeed, Vail, CO; Big Sky Good
Deeds, Big Sky, MT
Private
Donations/
Philanthropy*
Tax deductible
contributions
to a non-profit
organization/
foundation for
the purpose of
providing funds for
housing. McCall and
Valley County have
examples of capital
improvements that
have been primarily
funded in this way
such as Kelly's
Whitewater Park or
the Ice Rink.
Do not yet have a Local Housing "plan" that can be sold to a
foundation or philanthropic organization.
Do not have capacity to pursue.
Potential role for housing organization when in place.
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TOOL DEFINITION PROPOSED ACTIONS
Rehabilitation/
Weatherization
Repairing, updating,
enlarging, improving
energy efficiency,
and providing
handicapped
accessibility in
existing homes.
Federal or State
grants are typically
used. Staff/time
intensive.
Program has demonstrated value in improving weatherization
and assisting seniors living in older homes, but not many
homes exist in need of improvement in McCall or that are
occupied by low-income seniors.
Availability of resources or partners is largely unknown.
Explore whether there is a potential partner, such as a senior
organization, that could implement
Federal funding could be accessed.
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STRATEGIES FOR FUTURE CONSIDERATION
TOOL
DEFINITION
COMMENTS
PARTNERSHIPS
Property Management
Support For Employer
Housing Programs
Contracting to manage rental units.
Could work both ways — public
sector hires private firm or private
sector hires public/non-profit. Could
be used with Employer Assisted
Housing.
Potential to wrap into Employer
Assisted Housing strategy.
Some existing employers have
in-house capacity that has
potential to be shared.
Revisit as employer
partnerships, involvement,
sophistication grows.
PRESERVATION
No Net Loss/Replacement
Policy
Requires replacement of below -
market dwellings occupied by
residents when redevelopment
occurs. Similarly -priced units should
be replaced on site or another site,
or a fee -in -lieu of replacement could
be allowed. Demolition tax may be
used to fund replacement.
Not a significant impact in
McCall at this time.
May disincentivize desired
rehabilitation or redevelopment
of substandard/unsafe
housing.
Flexible Development
Standards
Zoning For Affordability
Reductions in parking, setbacks,
open space, height limits, road
widths, etc. to reduce the cost to
build and encourage a specific or a
variety of dwelling types, including
small lots for modest/tiny homes,
live/work units, and mid -size multi-
family (duplex to 4-piex).
Small lots for modest/tiny homes,
complete neighborhoods, live/
work, multi -family rental allowed
in commercial/mixed-use zones,
by -right Local Housing in all or most
zones.
Many components are
incorporated as part of the
density bonus program.
Additional items may come
forth under review for "removal
of regulatory barriers".
Need to coordinate with Sewer
District capacity and policy
under existing incentives.
Revisit pending Sewer
District Master Plan and city
infrastructure progress.
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TOOL
DEFINITION
COMMENTS
REGULATIONS
Inclusionary Zoning (IZ)
Residential Linkage;
Commercial Linkage
A percentage of residential units 1.
in new subdivisions/ PUDs are
restricted to Local Housing. Market
homes support below market units.
McCall had a program in place prior
to Idaho legislation prohibiting
mandatory IZ.
Requires new residential and/
or commercial development to
provide housing or pay fees for a
portion of employees needed to
fill the new jobs generated by the
development. Nexus Study required.
State legislation does not allow for
housing.
Utilizing incentives to facilitate
Local Housing.
Changes to state legislation
required to pursue.
May be a topic for the
Legislative Lobby Group.
City evaluating impact fees for
non -housing infrastructure/
services.
Changes to state legislation
needed to pursue.
May be a topic for the
Legislative Lobby Group.
HOUSING PROGRAMS
Habitat for Humanity
Self Help Build
Public Sector Development
International organization with local
chapters that use volunteers and
donations to build modest homes.
Inventory of homes may not be
permanent.
Home buyers receive low interest
loans and technical assistance
for their construction of homes.
Requires large time commitment.
Initiating, designing, financing
and constructing dwelling units
by municipalities, counties and/
or housing authorities. Less
cost, greater quality control and
similar to developing other public
infrastructure. More financial risk
and specific expertise required.
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Not active in McCall; land/
prices limiting.
Not active in McCall; no
capacity. May reevaluate when
housing organization formed;
capacity to explore.
Wrapped into Public/Private/
Institutional partnerships and
land banking strategies.
Preferred role for new housing
organization.
TOOL
DEFINITION
Community Land Trust
Co-op or Co -housing
Senior Housing
COMMENTS
Non-profit, community -based
organizations that ensure
stewardship and perpetual
affordability by maintaining
ownership of the land and leasing it
to those who own the homes built
on the land. Often develop housing
and/or partner with businesses
and government entities to provide
stewardship services.
Common ownership and
management of purpose-built
communities. Co-op ownership can
be used to share large homes by
multiple employees and to preserve
mobile home parks.
High density, smaller, low
maintenance units designed for
retiring residents. Can free up
housing stock for employees, esp.
with strategies that help locals out -
compete second -home buyers or
STRs.
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McCall Area Housing Authority
being pursued.
Exists in the region in limited
capacity.
May be an option to explore for
employer assisted housing/
housing partnerships.
May be an option to preserve
mobile home parks (see Mobile
Home Park Affordability
strategy)
Understood as a need in the
McCall Area.
Current priority is Local
Housing for all resident
occupants (seniors, workforce,
etc.)
Revisit as need/capacity
allows.
Preference to assist local
seniors rather than in -coming
retirees.
3 4
TOOL DEFINITION COMMENTS
Permanent Supportive (PSH)
And Transitional Housing
PSH pairs housing assistance with 1.
case management and supportive
services to help chronically
homeless individuals and families
lead more stable lives and help them
transition to home security.
Transitional housing refers to a
supportive — yet temporary — type of
accommodation that bridges the gap
from homelessness to permanent
housing by offering structure,
supervision, support, life skills, and
training.
Not a high priority at this
time. Revisit as need/capacity
dictates.
FUNDING
Construction & Debt
Financing with Favorable
Terms
Special Improvement District
Impact (or Linkage) Fees
Low interest loans, tax exempt
bonds, certificates of participation
and other forms of development
financing available to housing
authorities, cities, counties and
some non profits to develop housing.
1.
Interest rates are currently low;
though rising. More effective in
high -interest rate environment.
Revisit as needed.
Special Improvement Districts 1. Requires approval by property
(SIDs) are typically formed to fund owners in the proposed
public improvements, typically district.
infrastructure (roads, sewer, etc.)
or maintenance of City facilities 2. Have TIF strategy in place;
or services. Costs are distributed monitor.
across the properties within the SID
that benefit from the improvements.
Use specifically for housing is not
common.
A fee directly linked to the need for
Local Housing generated by new
development through jobs created.
Nexus required.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
May be a future consideration.
See "Residential and
commercial linkage" regulation
strategy, above.
IMINSIMENE
35
TOOL
DEFINITION
COMMENTS
Opportunity Zones
The Opportunity Zones investment
incentive was established in
2017 to encourage long-term
private investments in low-income
communities. Two Opportunity
Zones are eligible to receive private
investments through opportunity
funds in the McCall Area. The
program does not explicitly address
below -market Local Housing; pairing
with traditional LIHTC/etc financing
has been difficult/few successes.
Program expires end of 2026.
1 Economic Development tool,
does not have any affordability
incentives or controls.
Has not shown effective for
attracting Local Housing
investment as the lead purpose
for investors.
Expiration date approaching
fast.
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3. CORE COMPONENTS
Several Local Housing programs and community initiatives are in place in the McCall Area. This Action Plan
presents the ability to evolve the housing program to better meet the needs of residents and employees by
creating, strengthening and defining a partnership framework to address housing needs. This will allow the
McCall Area to leverage resources and capacity throughout the community and region.
Core components are the tasks and structures needed to ensure that the community partners and Plan
continue to move forward. To ensure support and continuation of this partnership, a sound administrative
structure needs to be established, along with housing program support to manage community housing that
is produced through this Plan. Most of this structure needs to be in place within the first two -years of Action Plan
implementation.
Housing Organization
To be most effective, the Housing Committee recognized that additional administrative and programmatic
capacity is needed in the McCall Area to manage an inventory of permanently restricted Local Housing, as
well as facilitate partnerships and coordinate resources needed for Action Plan strategy implementation. It
was recognized that a Valley Adams Regional Housing Authority existed in the past; however, concern over
the prior history of this organization and a desire to simplify the organization to initially serve the McCall Area
were raised. The capacity for a housing authority to issue bonds and act as a quasi -governmental entity were
desirable attributes of this type of structure.
It is recommended that a McCall Area Housing Authority be established, preferably within the
tirstyear of Action Plan implementation. The Housing Authority should encompass the City
of McCall, plus the Area of Impact. Many strategies will benefit from the administrative and
managerial structure of this organization. Further, the additional staff capacity is needed to
accelerate Local Housing in the McCall Area.
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HOUSING ORGANIZATION
McCaII Area Housing Authority
As specified in the action strategy description, above, base needs will be to establish funding to create the
organization and hire an executive director. At least three (3) years of start-up funding, typically averaging about
$250,000 per year, should be dedicated to form, staff, and seed this organization.
/ Manage/steward Local Housing units, including deed restriction and housing guideline administration;
managing Local Housing unit qualifications, turnover, and resales; and tracking Local Housing
inventory.
✓ Develop Local Housing/acquire land
• Raise funds/issue bonds/housing tax initiative
✓ Community education and outreach
✓ Action Plan coordination/administration
s/ Specified action plan strategy implementation (see "Roles and Responsibilities" section)
✓ Prepare for and attend working group sessions and public workshops.
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ACTION PLAN ADMINISTRATION AND COORDINATOR
Action Plan Administration
This step includes procuring and managing the budget and staff to implement the Plan, which includes
providing assistance and coordination of all implementing partners (see "Action Plan Coordinator" section,
below).
The first steps of administration by the city will be to:
1. Submit the Action Plan for acceptance (or adoption) by the City Council;
2. Present the Plan to Valley County for recognition (in the area of impact);
3. Present the Plan to the Sewer District Board for acceptance (or adoption)
4. Budget for three (3) years of implementation (staff, contractors, etc.); and
5. Establish the capacity for Local Housing program management (i.e., the Housing Organization), and
make needed adjustments to Local Housing deed restrictions, housing guidelines, and unit management
processes to meet and manage Local Housing objectives.
Action Plan Coordinator
The city can undertake this role until the Housing Authority is established. The role of the action plan
coordinator is to convene Action Plan implementing partners to continue communication, support existing
and new partnerships, monitor progress toward meeting goals and objectives, track and report on successes
and challenges, and gather information for potential Plan modifications.
Tasks include:
» Facilitation of partner meetings (at least quarterly to begin);
» Summarize and advertise the "collective impact" of Action Plan partners (update quarterly and track
and advertise through a published document or website);
» Public outreach/communications tasks;
» Partnership development to build capacity of existing partners and recommend and bring in new
partners;
» Project management: work with partners on teams to implement strategies (research, facilitate teams,
data analysis, outreach, etc.) and collect data on unit production, conversion and preservation; and
» Assisting partners with strategy plan development; defining implementation steps.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
MIMIMII
39
FINANCING
Adding to the housing inventory and building programs requires funding. This Action Plan identifies multiple
sources of financing to achieve its goals, including:
1. Expanded federal/state grant/loan outreach and coordination;
2. Coordinating partner capacity and resources;
3. Specific General Fund and/or Local Option Tax (LOT) set -aside for Local Housing initiatives;
4. Exploring a voter -approved tax/LOT increase for Local Housing; and
5. Private donations/grants collection and other private investment.
Financing, although addressed in the Action Strategies, is reiterated as a core component to emphasize the
coordination needed to effectively compete for financing and generate access to more.
» Some projects are underway and the Action Plan partners will be ramping up programs. Helping
partners navigate financing options, coordinate applications, unify messaging, and improve McCall's
visibility for effectively competing for state and federal awards will be needed.
» Passing a tax for Local Housing is hard. Many communities with active housing programs and great
successes have failed. Learn from those that have been successful and take the steps necessary to
build the political capital and community support to succeed.
Identifying financing opportunities, finding new ways to combine and leverage resources, coordinating
regional needs, and managing multiple resources to support the strategies in this Plan needs to be a
continuous process.
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PUBLIC EDUCATION AND ENGAGEMENT
Public engagement and education is a component that is often overlooked in housing programs, to their
detriment. Public education and community engagement is essential for the major initiatives contained in
this Plan, including new housing developments, tax allocations, and changes to development regulations.
Outreach should:
1. Build Community Momentum and Awareness.
> Educate the community on the local and regional housing challenges; the need to take action; the
steps being taken, by whom, and outcomes; and how the community benefits.
2. Strengthen Community Engagement.
» Utilize a variety of tools and local organizations to reach out to and engage the community to learn
about the Action Plan process and share their feedback.
» Every achievement of the Action Plan, no matter how big or small, should be expressed to the
community.
3. Build Transparency
» Transparency builds trust, which builds support.
» Outreach and education is essential if support for additional revenue, capacity, land development,
code changes, or other resources are sought for housing.
» A community that supports housing and is informed of its benefits will help stabilize commitments to
housing when political winds shift or economic challenges cast doubt.
MCCALL LOCAL R • HOUSING NEEDS
Photos of the community engagement exercises done for this plan
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APPENDIX A - ACTION PLAN PROCESS, DEFINITIONS
AND ACKNOWLEDGMENTS
Local Housing Action Plan Process
JANUARY
•Project Orientation
•Housing Goals
(3 hours)
FEBRUARY
•Strategy Identification
•Prioritization
(3 hours)
PROJECT SCHEDUL
MARCH
Strategy Refinement
(5 hours)
APRIL
-Plan Refinement
(3 hours)
•Draft Plan
Review/Input
MAY
Final Plan/
Presentation
The Action Plan process began with a review of the 2018 City of McCall Housing Strategy and an updated
review of housing market and income trends through 2022 to:
1. Identify how much, what type, at which price points, and for whom Local Housing is most needed;
2. Inventory existing resources and capacity; and
3. Understand current housing achievements.
Beginning with the above information, the McCall Area Local Housing Action Plan process kicked off in
January 2022. The process included five work sessions with the Housing Committee over a four -month
period and online participation opportunities for public input. The consultant team provided technical
assistance and expertise on housing solutions in the intermountain west and, assisted by a professional
facilitator, worked with over twenty community members comprising the Housing Committee to decide upon
and craft strategies for the McCall Area. Input from the public helped ground the approach through online
opportunities for participation. This community -driven process resulted in the McCall Area Local Housing
Action Plan.
This information is publicly available within the Local Housing Committee Packets for this process and
summarized in the Housing Bridge on page five of this Plan.
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More specifically, the process:
1. Began with an overview of key findings from the 2018 City of McCall Housing Strategy, updated housing
market information, and overview of existing programs and active housing participants to shape initial
goals and objectives for the Local Housing Action Plan. Housing Committee members were additionally
apprised of the Action Plan process; core needs for housing plan implementation; and provided some
examples for how other communities have been addressing similar housing challenges.
2. At the second session, the Housing Committee was presented with about 40 tools that other
communities have used to address Local Housing needs. Through discussion and input from the
consultants, the Housing Committee identified tools they felt would be most effective for The McCall
Area.
3. The Housing Committee then spent two technical work sessions on the identified tools to confirm each
tool as a priority and develop action strategies. Through this process, the Housing Committee learned
about best practices in comparable communities, developed strategies, and discussed potential roles
for implementation. The outcome of these sessions was presented to the public through an online
questionnaire to understand public perception on potential priorities and solicit additional ideas and
input.
4. The final session modified the actions and priorities pursuant to strategy sessions and public input
received. Goals and objectives were reevaluated; a timeline for prioritized action strategies was
developed; and roles and responsibilities were identified among the various partners to implement the
Plan.
MCCALL LOCAL W ti HOUSING NEEDS
•
DRAFT GOAL NUMBER OF UNITS
.:fe •0 rage of al least 50100.1 nouyrp finds per year over the neat five (SI hems dle
tsughrerre et the oeg ort, through a cornhmation of room 110 C n the fa.Ca' area.
near fisting redevelopment. anM �mpovinq the con,h�en v..�.�,r-ai
_ .fisting homes
•
•
MCCALI LOCAI ^ 11 ' HOUSING NEEDS
ORAFE OBJECTIVE
The metal: oblectree of tee Plants to ensure that McCo®tamams a Myers,. r1SMent comrusetry by ne'wng ledridrer nm . . _ . ,aoet)• 01 Quality housing types,. list ate affordable for local nseienta and dor,—S.tl
rough strategies and programs- Ade r2 certrlg local and reguonat $1110205 and appotunitleey •rallp`lef..
Goals and objective statements evaluated for effectiveness by the Housing Action Committee
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DEFINITIONS
The following definitions are provided and coincide with those used in the City of McCall Area Local Housing
Needs Assessment (February 2019).
Affordable Housing
As used in this report, housing is affordable if the monthly rent or mortgage payment
does not exceed 30% of gross household income (before taxes).
AMI Area Median Income)
A term that generally refers to the median incomes published annually for counties by
the US Department of Housing and Urban Development (HUD). AMI varies by household
size. AMI is used to set income and rent limits for housing programs statutorily linked to
HUD income limits (e.g. low-income housing tax credit rentals).
Local Housing
Dwellings of all types that those who live and/or work in the McCall Area can afford to
purchase or rent, serving the entire spectrum of housing needs that are not being met by
the housing market. This currently means rentals priced for households earning 100%
AMI or less (about $60,000 for an average sized 2.5 -person household) and ownership for
households earning 150% AMI or less (about $100,000 for an average sized 2.5 -person
household).
Local Housing Action Plan
A partnership framework with actionable strategies to increase the inventory of Local
Housing — dwellings that McCall Area residents and employees can afford to purchase or
rent.
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ACKNOWLEDGMENTS
We would like to thank everyone who gave their time and assistance to create the McCall Area Local
Housing Action Plan. Input from local employers, Realtors, developers, organizations, regional entities, and
property managers, as well as over 360 community members through an online questionnaire, were central
to identifying the Local Housing needs and several strategies that are the focus of this Plan. Development
of the Plan relied on funding from the city of McCall along with extensive participation from city staff and
community and regional stakeholders, leaders, and residents that formed the Housing Committee:
McCaII Area Local Housing Action Plan Committee
Michelle Groenevelt
City of McCall
mgroenevelt@mccall.id.us
Meredith Todd
City of McCall
mtodd@mccall.id.us
Cynda Herrick
Valley County Planning & Zoning Director
cherrick@co.valley.id.us
Bill Weida
PLRWSD Sewer District Board Member
billweida2@gmail.com
Sasha Childs
Real Estate Broker/Developer
sashachilds83@gmail.com
Vince Beer
McCall Local Builder/Contractor
denverproperties@live.com
Kathryn Almburg
The Housing Company
kathryna@ihfa.org
Brian Harris
Payette National Forest - US Forest Service
brian.d.harris@usda.gov
Ken Rider
Brundage Mountain
ken@brundage.com
Nick Zello
McCall Housing Advisory Committee
nzello@gmail.com
Robert Lyons
McCall Area Planning & Zoning Chair
robertlyons@highmountaincountry.com
Colby Nielson
Urban Renewal Agency Representative/City Council
Member
cnielsen@mccall.id.us
Jill Morris Chapman
West Central Mountain Economic Development
Council
admin@wcmedc.org
Lyle Nelson
City Council
Inelson@mccall.id.us
Sherry Maupin
Valley County Commissioner
smaupin@co.valley.id.us
David Carey
Owner - Hotel McCall/Jug Mountain Ranch
davidcarey@hotelmccall.com
Steve Millemann
McCall Private Land Use Lawyer
sjm@mpmplaw.com
Lindsey Harris
McCall Chamber of Commerce
lindsey@mccal Ichamber.org
Tom Garcia
Shore Lodge & Whitetail Club
tgarcia@shorelodge.com
Tiffany Dobbs
St. Lukes Health Systems
dobbst@slhs.org
Eric Pingrey
MDSD Superintendent
epingrey@mdsd.org
Rick Fereday
Owner - May Hardware, Former Chair MRA
rfereday@mayhardware.com
Toni Curtis
Housing Advisory Committee Representative
toni@mountainlivingmanagement.com
Kelly Hill
DoneRight - Property Management
kelly@donerightmanagement.com
Lisa Beck
Architect - Epikos Design & Planning
(beck@epikosdesign.com
*Many Housing Committee members are affiliated with multiple organizations in The McCall Area. Only the primary affiliation
of each member is listed above.
We cannot thank the community enough for the wealth of insight and experience they brought
to this process. The McCall Area Local Housing Action Plan would not exist without this broad and
extensive participation.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
)}S ) i3On.,.-L nG, SNti n� ru���' �� �' Li (; �, ' LL(` Lo-;i;,'
45
APPENDIX B - LOCAL HOUSING INCOMES AND
AFFORDABLE PRICE POINTS
MCCALL AREA SPECTRUM OF HOUSING NEEDS
Low
Income
$35,700
Very Low p
Income
$19,690
G
Moderate
Income
$47,550
80%
AMI
Subsidized/
Lower -priced
Rentals
Deeply
30% Subsidized
AMI Rentals
Supportive
Housing
Ga`eAo< ��d�
\c,cfce kg' kCS`/
Middle
Income
$59,500
Core
Housing
Target
Upper Middle
Income
$71,400
Entry 200%
Homeownership AMI
Source for income amounts: 2021 US Dept of Housing & Urban
Development (HUD) area median income limits for a 2.5 -person
household (i.e., the average household size in McCall)
'Source: Blue Ribbon Demographics, LLC
Step -Up
Homeownership 300%
High
End
Market
High
Income
$119,000
Above High
Income
$178,500
AMI levels
2.5 person Household
Affordable Rent
Affordable Purchase
Price
30%
$19,690
$490
74,800
60%
$35,700
$890
135700
80%
$47,550
$1,190
$180,700
100%
$59,500
$1,490
$226,100
120%
$71,400
$1,790
$271,300
150%
$89,250
$2,230
$339,200
200%
$119,000
$2,980
$452,200
300%
$178,500
$4,460
$678,300
*Assumes 5% 30 -year fixed rate loan, 5% down, 20% of monthly payment for HOA/taxes/insurance
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APPENDIX C - LOCAL HOUSING DEED RESTRICTION
RECOMMENDATIONS
Introduction and Deed Restriction Purpose 49
Administrative Housing Guidelines 50
Common Deed Restriction Components 51
Occupancy Criteria 51
Employment* 51
Income 51
Assets 51
Residency 51
Household Size 52
Affordability 52
Initial Price Targets 52
Appreciation Caps* 52
Miscellaneous Provisions 53
Administration and Compliance 53
Other Considerations 54
Permanent vs. Time Limited Restrictions* 54
Occupancy Preferences vs. Absolute Requirements 54
Pricing Methodology 54
Helpful Resources 54
Deed Restriction Recommendations 56
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INTRODUCTION AND DEED RESTRICTION PURPOSE
This report evaluates the existing McCall deed restrictions, summarizes provisions common to deed
restrictions placed on below -market housing in similar communities, and provides best practice
recommendations on each component. It is intended to inform decisions about updates to the current deed
restriction templates to preserve the inventory of Local's Housing and progress implementation of the McCall
Area Local Housing Action Plan.
Deed Restriction Purpose
Deed restrictions ensure community goals are met and maintained for the long term when Local Housing
is created. A deed restriction is a legal document containing the rules and regulations that place certain
limitations on real estate. They are typically recorded with the County Clerk and have continuity with the
property regardless of ownership. Deed restrictions can be applied to new or existing housing inventory and
may be in place for a specified period of time or in perpetuity.
The reasons why communities choose to support housing vary.
Common goals include:
» Preserve community and neighborhoods,
» Provide an adequate labor force for a healthy economy,
» Maintain relationship between primary and second home (i.e., to make sure that a defined percentage
of homes are occupied by local residents),
» Provide a spectrum of affordable housing choices to serve various income levels,
» Foster diversity, and
» Ensure new development also addresses local resident housing needs.
When objectives are clear, decisions about structuring specific provisions of deed restrictions become
easier. Objectives can vary by tool with differences in income levels served, type of housing provided, market
targeted, term of the restriction, etc. Most communities typically use several versions of deed restrictions,
linked to the specific local housing tool used and program goals.
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ADMINISTRATIVE HOUSING GUIDELINES
Administrative housing guidelines work together with deed restrictions and typically define the technical
procedures for developing, purchasing, owning, selling, and renting deed restricted units. Administrative
guidelines may include specific eligibility criteria, AMI levels, purchase prices and rents by AMI level, resale
and leasing procedures, and other information relevant to the development and operation of deed restricted
housing.
Housing guidelines permit some flexibility in deed restriction administration, meaning that they can be
updated administratively as needed to reflect changing housing markets and program priorities. They are,
therefore, well suited to containing the details of deed restriction administration that may change over time,
such as specific incomes tied to each AMI level, occupant asset requirements and limitations, occupancy
preference criteria, etc.
We have recommended that McCall develop housing guidelines to specify administration of the Local
Housing deed restrictions. The specifics of what these should include are beyond the scope of this work, but
some examples have been provided in the "Helpful Resources" section, below.
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COMMON DEED RESTRICTION COMPONENTS
This section provides information on the most common components found in effective Local Housing deed
restrictions. Considerations for each component are shown, based on some of the more common provisions
found within deed restrictions throughout the mountain west. Because multiple options exist within each
component, this allows for tailoring to meet community goals, as well as differences based on the type of
tool used to produce Local Housing (e.g. direct land or monetary subsidy, development incentives, housing
programs, etc.),
Occupancy Criteria
Employment*
» Within specified geography
» Employed by local business vs. remote worker
» Work for a minimum number of hours and specified period per year and/or minimum percentage of
income earned from local employment (e.g., 70%).
» Retirees okay if worked locally for specified period before retirement (e.g., five years).
» Need to also accommodate residents with disability/unable to work
Income
» Upper income limits typically imposed; Area Median Income (AMI) is the most widely used standard.
» Without income restrictions, units are likely to serve the most advantaged or upper end of the local's
market — dual income households, buyers with non -wage resources - and, therefore, do not provide the
range of housing and price points needed by the majority of local residents. Increases the risk that units
will be occupied by remote workers/people not employed in local jobs.
» Income limits have typically increased as the gap between market and prices affordable for residents
widens.
» Larger subsidies and incentives are needed as the required income level decreases.
Assets
» Common but not universal.
» Trust fund recipients may income qualify but have significant assets and income potential.
» Caps may be based on a dollar amount.
» Owning other residential real estate usually prohibited.
Residency
» Living in the jurisdiction and in the deed restricted unit as the occupant's primary residence is required,
with a few exceptions (e.g., sabbaticals, temporary job assignments, illness). Typical requirement is
occupying the unit at least 9 or more months per year.
» A minimum number of years living in the community may be required to apply or utilized as a
preference when there are multiple applicants for units; employers recruiting for new jobs may oppose
length of residency limitations.
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Household Size
» Number of persons in household often matched to the number of bedrooms (e.g. single persons not
allowed to occupy a 3 -bedroom unit). A common formula for eligibility is "number in the household +1 =
number of bedrooms for which they qualify" for ownership project.
» Rental may be more restrictive (e.g., at least one person per bedroom).
» Maximum persons per bedroom commonly used to prevent overcrowding, although fair housing
considerations may limit this ability.
» Marriages, divorces and childbirth complicate compliance with household size limitations. Ownership
programs typically only enforce household size eligibility at the time of purchase; rentals often enforce
on a more frequent basis (e.g., yearly).
Affordability
Initial Price Targets
» Best practice is to specify initial price targets in the deed restriction (easiest to manage). Alternatively,
price targets may be covered in PUD, annexation agreement or other document binding developer.
» 10 to 20 percentage point spread between maximum income allowed and prices charged are needed.
Example: homes intended to serve up to 120% AMI are priced at 100% to 110% AMI. If prices are set at
the maximum income, this significantly limits the number of households that can afford the home.
» Discount needed to convert units from free market to deed restricted not well understood. Varies with
unit age and quality, market availability, community perceptions, etc. The upper price of deed restricted
homes commonly need to be at least 20% below market prices, at a minimum.
» In buy down programs with few if any limits on how proceeds are spent, public sentiment may prefer
that resources are allocated to households most in need.
Appreciation Caps*
» 3% per year price appreciation maximums typical
» Indexes may be used including change in CPI or AMI — adds complexity, confuses buyers, may not
allow any appreciation if the index is unchanged, are not necessary
» If not capped, price volatility (both up and down) is greater with changing economic and housing
market conditions. Prices are more stable when the supply of deed restricted units is high relative to
demand.
» The rate of price increases varies by unit type. Price caps are less important on units that are less
desirable.
» Without appreciation caps, prices may rise to the level where there are no qualified buyers. In some
cases, this has led to efforts to have the restrictions removed.
» Resale price caps may not concern buyers who are unable to purchase market housing — they desire
a safe, stable home as a priority with the ability to build equity by paying down debt and through limited
home appreciation.
» Capital improvements must be tracked and the ability for owners to recoup capital improvement costs
are typically limited — either by dollar amount or percentage of price, in combination with limits on the
type of improvements allowed (e.g., value added (improved energy efficiency, improved durability of
finishes) vs. luxury (pools)). The purpose is to encourage home maintenance and necessary upgrades,
while retaining long term affordability for future buyers.
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» Resale price calculation methodology is needed in the deed restriction or administrative procedures
guidelines.
» Restrictions should clearly state that appreciation caps are not guarantees of price increases.
» Rent limits can only be imposed in compliance with an Idaho statute prohibiting rent control.
Miscellaneous Provisions
» Short term rental allowances and restrictions — whole unit and bedrooms.
» Renting to roommates and how their incomes are or are not counted.
» Marketing process and period for resale.
» Agreement to maintain home in good condition and pay charges for excessive damage.
» Option to purchase/1st right of refusal given to city, county or housing agency.
» Mortgage debt limitations to keep owners from getting underwater and defaulting; when debt exceeds
attainable price, jurisdictions may not be able to justify purchasing units to preserve deed restrictions.
» Default/foreclosure procedures requiring notification to the managing entity to protect against
potential loss of the deed restriction upon foreclosure (e.g., option to redeem, first right of refusal for
purchase).
» Owner insurance requirements to ensure they insure for the replacement value (as opposed to the
below -market sale value) of the home.
Administration and Compliance
• Often performed by housing authority be can be done by municipalities as the case by the Town of
Crested Butte for its ADU program.
• Rentals are recertified annually (typically) while ownership is typically only enforced at time of sale;
however, validating permanent residency requirements may occur regularly.
Multiple versions of the deed restriction increases the complexity of administration and staff time
required.
Modifications may be needed/desired over time. Exercising the first right of refusal allows communities
to take ownership and impose revised deed restrictions before resale.
References to administrative guidelines that can be modified from time to time is one way to maintain
some degree of flexibility in deed restrictions.
• Each resale involves calculation of price limits and buyer qualifications.
• Fannie Mae and Freddie Mac have created specific underwriting criteria to accommodate deed restricted
product that should be consulted to ensure those guidelines are being met.
Realtors, mortgage lenders, appraisers, title companies, and developers need education on deed
restrictions
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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Other Considerations
Permanent vs. Time Limited Restrictions*
» Local restrictions are typically permanent.
» Restrictions that expire in the future were more common in the past but have become uncommon
as knowledge about and acceptance of restrictions has become more widespread, and the pitfall of
temporary restrictions have become more evident.
» Temporary restrictions are (30 to 40 years) associated with Federal/State financing.
Considerations include:
• Windfall to owners at expiration date with no means to recapture the public investment.
• Higher construction costs in the future require a larger investment to replace units.
• Developable sites become more limited over time.
• Temporary restrictions offer no advantage to developers of for -sale housing who are primarily
concerned with the initial sale.
Occupancy Preferences vs. Absolute Requirements
» The ability to transfer ownership/occupancy is critical and may be limited by absolute requirements.
» Both approaches have administrative implications. Preference point systems can require additional
documentation. Absolute requirements may lead to exceptions requiring Board/Council approvals if they
overly limit the pool of eligible buyers or renters.
» Preferences may be difficult to administer and increase the time units are vacant when turning over
due to extended marketing periods. Transparency of the selection process may be a concern.
» The amount of demand there is for the product influences whether absolutes are needed or
preferences could work.
» Absolutes can restrict flexibility. During market down turns when demand falls relative to product
availability, flexibility is very helpful.
» Preferences may further inequities in communities. For example, if points are given for volunteering,
only residents who have the time to volunteer get preferential consideration. Very low income
households, single parents, persons with disabilities and others may not have the time or capacity to
volunteer.
» All absolute requirements and preferences should be examined for fairness and compliance with the
Fair Housing Act.
MCCALL AREA LOCAL HOUSING ACTION PLAN, JUNE 2022
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Pricing Methodology
Establish a methodology to set initial sales prices to ensure initial affordability levels and establish
expectations for developers seeking incentives to produce Local Housing. The following chart shows an
example sales price methodology.
Example sales price methodology:
Sales Price Assumptions
1 Bed 2 Bed
3 Bed Notes
Household sae
hcome level (%AM
Annual Income
Affordable poyrnent (96 of income}
Base price used for escrowca fcs'
Affordable monthly payment
2
110%
79,464
3
110%
89,397
30% 30%
$ 278,000 $ 316, 000
4
11096
$ 99.330
30%
$ 350,000
1,987 $ 2.235 $ 2.483
Escrows
Tames $
278 $ 316
Income cap at 120% AM
County Area Nhddio n Income per HH sae
'Use to avoid circular caiculotons on escrows
Taxes. Insurance and PM estimated from base price
$ 350 Monthly lax rote from taxing jurisdicion
Insurance $ 93 $ 105 $ 117 Nbnihy insurance role - estimate
HOA dues $ 200 $ 200 $ 200 Same for al types - pending HOA budget
PM $ - $ $ - Not required if rrarket value is >20% of res4icted sales price
Total escrows $ 571 $ 621 $ 667
$ 1,416 $
Interest rate 5.00% 5.00% 5.00% Set to provide some flexibirty with changing inferest roles
Loan temp (years) 30 30 30
Nb>im um loon $ 263,762 $ 300, 582 $ 338, 396
Loan to value 95% 95% 95% 5% down payment
Maximum Sales Price (VS% LTV) S 277.645 S 311.403 S 356.201
Down payment required (plus closing costs) $ 13,882 $ 15,820 $ 17,810
Remaining for loon repayment
Variables to consider include:
1,614 $ 1,817
» Household size — used to determine household income by AMI and adjusted for household size.
» Income level — a reduction in the maximum household income to have a large enough pool of buyers
that are able to qualify to secure a mortgage to purchase the home.
» Affordable Payment (% of income) — a generally acceptable range to ensure housing costs are
affordable is between 30% and 33%.
» Interest rate — in order for buyers to qualify for mortgages, this needs to be set at a level that at least
reflects current interest lending rates. It is often set slightly higher to improve long-term affordability of
the home.
» Down payment — Fannie Mae and Freddie Mac have mortgage products that allow down payments of
5% and less. Most programs require a small percentage plus closing costs.
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HELPFUL RESOURCES
The following can be referenced for additional information/examples. The examples provided are known by
the consultants to be tried, tested, and effective over time in similar mountain communities as McCall. No
single example will be all inclusive or necessarily appropriate for McCall. These are provided for information
only to illustrate the variation in deed restriction application, use of housing guidelines for deed restriction
administration, and resources through which more information can be found.
Example deed restrictions:
Whitefish, MT: https://www.cityofwhitefish.org/DocumentCenter/View/265/Deed-Restriction---Ownership-PDF
Summit County, Co: https://www.summitcountyco.gov/1202/Deed-Restrictions-by-Basin
Telluride, Co: https://smrha.org/town-of-telluride/
Grounded Solutions model deed restriction: https://groundedsolutions.org/tools-for-success/resource-library/2021-
model-deed-restriction
Example housing guidelines:
Blaine County, ID: https://www.bcoha.org/community-housing-guidelines.html
Summit County, CO: https://www.summitcountyco.gov/DocumentCenter/View/27084/2019-Summit-County-Housing-
Guidelines?bidld=
Eagle County, Co: https://www.eaglecounty.us/housing/housingguidelines
Affordable pricing and resale formulas:
https://groundedsolutions.org/tools-for-success/resource-library/affordable-pricing-and-resale-formulas
HomeKeeper deed restriction tracking program information:
https://myhomekeeper.org/about-us-2/our-partners/
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DEED RESTRICTION RECOMMENDATIONS -
Occupancy Criteria
Item
Current Restriction
Recommendation
Own
Rent
ADU
Employment*
Employed, work minimum
30 hours/week or 1,560
hours/year, within the city
of McCall for a set period
(6 consecutive months) or
have employment offer from
a McCall Business
Senior (age 65 and older)
as primary resident as may
be further defined in the
applicable McCall Local
Housing Policy (no Local
Housing Policy)
Person with disability
Maintain this provision.
Expand work area to include
the city of McCall and area of
impact.
Include the definition of "McCall
Business" (which should include
businesses in the city or area of
impact).
Maintain this provision. Include
information about years worked
locally prior to retirement
in administrative housing
guidelines.
Maintain this provision.
X x x
x
x
x x X
Income
None
Establish income criteria for
Local Housing, including a few
income ranges based on AMI
(Area Median income) to ensure
initial affordability.
x x
Assets
None
Establish an asset cap based
on a dollar amount and which
increases annually. Prohibit
ownership of residential real
estate at time of purchase or
rent.
x
Residency None
Require that occupancy of Local
Housing be a primary residence.
Owner occupancy at least 10
months per year.
x
Household None
Size
At time of lease or purchase, link
household size with the number
of bedrooms (1 bedroom =
minimum 1 person household;
2 bedroom = minimum 2 person
household, etc.).
x
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Affordability
Item
Current Restriction
Recommendation
Own
Rent
ADU
Initial price
targets
(check ID
statute
regarding
legality of
setting rent
limits)
Developer sets initial rental
rates or sales price
Establish a methodology to
set initial purchase prices that
includes a 1 O% to 20% spread
between income allowed
and incomes used to set the
purchase price.
Use the HUD Fair Market Rents
calculated for Valley County,
or a percentage reduction, and
include core utilities in rent.
Consider creating two
classifications of deed
restrictions: income -linked and
employment -linked with no
income criteria.
x
x
X X
Appreciation
caps* (check
ID statute
regarding
legality of
rent limits)
The base rental rate or base
value of a for -sale home will
be adjusted annually and
according to the percentage
increase of the Consumer Price
Index for All Urban Consumers
(CPI -U) for the twelve calendar
months prior to and including
the most recent month for
which such Index is available.
Use a set appreciation cap
between 2% and 3%. Include
language that appreciation is
not guaranteed. Allow for capital
improvements up to 1 O% of the
initial purchase price.
X X
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