HomeMy Public PortalAboutMcCall, Idaho: Community Housing/No
McCall OKs
low-income project
BY TOM GROTE
The Star -News
A 50-unit housing project de-
signed for low-income and elderly
residents was approved last week by
the McCall City Council.
The project was approved for 4-
1/2 acres of land along Stibnite
Street behind The Woodsman
Motel. Developer Steven Pierce
plans 34 units for low-income resi-
dent and 16 unit for the elderly with
low incomes.
Council members split 2-1 to
approve the project. Members
Francis Wallace and John Larson fa-
vored the plan, while council mem-
ber Gary Van Komen voted no.
Council member Cindi Le Brett
was absent, but wrote a letter to her
fellow council members urging
strict conditions on the project, if
approved.
There was split testimony during
a public hearing on the project held
last Thursday night. Pierce, who
also developed the Osprey Court
low-income apartments in McCall,
told council members that he low-
ered the density from about 90 units
to the current 50 after hearing objec-
tions from neighbors.
The project would be attractive,
have an on -site manager and fill a
need for low-income housing in the
community, said Pierce, of Boise.
"I'm out to make some money, and
the city of McCall has a housing
shortage," Pierce said.
The project also received support
from Jim Thackeray, speaking for
the city's housing task force spon-
sored by the state Job Service.
Thackeray said that he knows of
cases where job applicants have
found work, but could not relocate
because they could not find housing.
"It seems like anyone working for a
living has a hard time finding a
place to live," Thackeray said.
Renters are being thrown out of
their homes by owners who are sell-
ing their properties, and those who
cannot find homes either camp out-
doors or move in with friends or
families, he said.
A letter supporting the project
also was received by Paula Levi
Fodrea of the Western Idaho
Community Action Program, which
assists low-income residents.
Opponents to the project submit-
ted a petition with 84 names on it
asking for its denial. Speakers wor-
ried about the project's effect on .
traffic in the area, and protested
Pierce's request for a higher density
than the 34 units allowed by the
current zoning.
Wayne Gutowski said more cars
and people in the area would create
more traffic hazards and increase
what he called "social tensions."
Betty Woods, owner of The
Woodsman, said that the low-in-
come units likely would be inhab-
ited by families with children.
"Those kids will come in with their
skateboards, bicycles, and driving,
breaking windows and throwing
rocks, Woods said. J
John Parker said that he pur-
chased his home near the project
with the confidence that the current
zoning would offer him protection.
"I don't want it," Parker said.
Council members voted to allow
the project only if Pierce granted an
easement to a 60-foot strip of land
on its west end to allow for the
eventual extension of First Street
from Colorado Street to Stibnite
Street.
Council members also noted that
Pierce still must qualify for federal
financing for the project, and that he
must install a new water line to
serve the entire neighborhood unless
the city can get a state grant to build
the line.
ny ,q �y .� a G p — /:2,/1r`71
Realities of housing needs
brought before McCall Council
MCCALL — In light of a statement that nearly
one in three persons residing in Valley County last
year qualified for low-income assistance, the Idaho
Department of Health and Welfare asked the McCall
City Council Thursday night if it would be willing
to help provide affordable housing.
Jay Smithman of IDHW said the need has been
emphasized by employers in the region whose employ-
ees find it difficult to find housing they can afford.
If his agency undertakes to develop rental hous-
ing units, he said, someone must be willing to take
on ownership of the units. The Western Idaho
Community Action Program, a nonprofit organiza-
tion which primarily deals with anti -poverty issues,
has agreed to take on that responsibility, he said.
Speaking for Valley County WICAP was Paula
Fodrea, who said 1,936 people, or 29.3 percent of
the county's population, qualified for some form of
assistance in 1993. During the year, the organiza-
tion dispensed $11,635 worth of services, she said.
Among the recipients were 71 homeless persons,
she said.
"What we're seeing as time goes by is that peo-
ple who have rental homes here and work here are
having the homes sold right out from under them,
and they have nowhere to go," said Fodrea.
One of the ways WICAP helps them is by help-
ing cover the first month's rent on their rental homes,
she said. But funds for that purpose are very limit-
ed and are used up rapidly. The organization refers
many of its solicitors to other agencies, said Fodrea.
Other means of assistance are by helping with
heating bills during the winter and by placing news-
paper ads soliciting persons who can help an indi-
vidual or family meet specific needs.
Smithman said he is currently working on a trans-
action that would land property to be used for build-
ing rental homes for low-income and very -low-
income residents. The project would comprise the
relatively low number of eight units.
"There's so much demand on the money in Idaho,
it's just hard to get anything together," he said.
The smallest housing project he has ever worked
on, he said, was four units.
"Low income is defined as 80 percent or less of
the median income for Valley County, which accord-
ing to the U.S. Department of Housing and Urban
Development is $32,200, Smithman said. "Very low
income is defined 50 percent or less, he said.
Under his proposal for the current property deal,
a $449-per-month two -bedroom unit for low-income
residents would be $56 exempt on utilities, thus total-
ing $393. A three -bedroom unit costing $510 with
a $70 utilities discount would rent for $440.
For very -low-income renters, assuming the same
utilities breaks, a $363 two -bedroom unit would rent
for $307 while a three -bedroom costing $419 would
be rented for $349.
Smithman asked the council to consider submit-
ting
a letter from the City of McCall saying IDHW's
proposal is within the scope of the city's housing
plan, thus signaling the city's willingness to help in
planning and executing an affordable -housing program.
He said as soon as the property for the eight -unit
project is secured, he will have a better idea of what
specifics to ask of the City.
Acting City Manager Bud Schmidt pointed out
that McCall does not qualify for a block grant for
affordable housing because more than 50 percent of
the residents have incomes higher than the median.
"That means there's a very small middle class in
this community," Schmidt said.
Smithman said he would like to get involved in
the business of building subdivisions and limiting
the homes to people who qualify for low-income
loans. He said that while the city's zoning laws are
compatible with such a plan, a major stumbling block
is the cost of the land.
��J t d F . I Y C
R u l i n g s t a l l s
h o u s i n g p l a n
B Y R O G E R P H I L L I P S
T h e S t a r - N e w s
A n a f f o r d a b l e h o u s i n g p r o j e c t p r o -
p o s e d o n s t a t e l a n d s n e a r D e i n h a r d
L a n e h i t t h e s k i d s l a s t w e e k w h e n t h e
' I d a h o A t t o r n e y G e n e r a l ' s o f f i c e r u l e d
t h e I d a h o D e p a r t m e n t o f L a n d s c o u l d
n o t u s e t h e l a n d f o r s i n g l e - f a m i l y
h o m e s .
T h e p r o p o s e d h o u s i n g p r o j e c t w a s
s c h e d u l e d t o g o b e f o r e t h e S t a t e L a n d
B o a r d f o r r e v i e w o n T u e s d a y , b u t i t
w a s p u l l e d f r o m t h e a g e n d a a f t e r t h e
a t t o r n e y g e n e r a l ' s o f f i c e h a n d e d d o w n
i t s r u l i n g .
" I t ' s d e f i n i t e l y o f f t h e a g e n d a f o r
t h e t i m e b e i n g , a n d w e d o n ' t k n o w
w h e n i t w i l l c o m e b a c k - o r i f i t w i l l
c o m e b a c k , " s a i d B r y c e T a y l o r , s t a t e
l e a s i n g s p e c i a l i s t f o r t h e l a n d s d e p a r t -
m e n t i n B o i s e .
T h e o r i g i n a l p l a n w a s f o r t h e l a n d s
d e p a r t m e n t t o l e a s g t h e e n t i r e 4 0 - a c r e
p a r c e l t o t h e W e s t e r n I d a h o C o m m u -
n i t y A c t i o n P r o g r a m , w h i c h w o u l d
l e a s e i n d i v i d u a l l o t s t o m o d e r a t e - i n -
c o m e f a m i l i e s f o r h o u s i n g .
T h e p r o p o s a l s p a r k e d o p p o s i t i o n
b y n e a r b y r e s i d e n t s w h o d i s l i k e d t h e
c o n c e p t o f a l a r g e s u b d i v i s i o n d e d i -
c a t e d t o a f f o r d a b l e h o u s i n g i n t h a t
a r e a .
T h e p r o p o s e d s i t e i s p a r t o f a l a r g e r ,
8 0 - a c r e p a r c e l t h e s t a t e o w n s n o r t h o f
D e i n h a r d L a n e a n d e a s t o f S h a v e r ' s
s u p e r m a r k e t . T h e l a n d s d e p a r t m e n t ' s
M c C a l l o f f i c e o c c u p i e s p a r t o f t h e
l a n d .
T h e l e g a l i s s u e b o i l e d d o w n t o t h e
f a c t t h a t s i n g l e - f a m i l y d w e l l i n g s
w o u l d b e b u i l t o n t h e l a n d , w h i c h t h e
a t t o r n e y g e n e r a l ' s o f f i c e r u l e d w a s
n o t l e g a l r e g a r d l e s s o f w h i c h a g e n c y
h a n d l e d t h e i n d i v i d u a l l e a s e s .
" T h a t ' s t h e k e y . N o t m a t t e r w h o
t h e l e s s e e i s , i f i t ' s f o r l o n g - t e r m r e s i -
d e n t i a l l e a s i n g , i t i s p o t c o m p a t i b l e
w i t h t h e c o d e , " T a y l o r s a i d .
H e s a i d t h e o n l y w a y t h e p r o j e c t
c o u l d c o n t i n u e i s i f t h e l a w w a s
c h a n g e d , b u t t h a t w o u l d h a v e t o b e
i n i t i a t e d b y W I C A P .
" I t h i n k W I C A P w o u l d l i k e t o l o o k
a t t h e p o t e n t i a l t o c h a n g e t h a t c o d e , "
T a y l o r s a i d .
" W e h a v e n o p l a n s a t t h i s t i m e b u t
w e a r e s t i l l c o n c e r n e d a b o u t t h e i s s u e
o f a f f o r d a b l e h o u s i n g i n V a l l e y
C o u n t y , " s a i d P a u l a F o d r e a , W I C A P
d i r e c t o r f o r V a l l e y C o u n t y .
D i c k M o t t , a M c C a l l r e s i d e n t a n d
v o l u n t e e r o n a l o c a l a f f o r d a b l e h o u s -
i n g c o m m i t t e e , s a i d h e f o u n d i t o d d
t h a t t h e r u l i n g c a m e d o w n a f t e r t h e
l a n d s d e p a r t m e n t h a d a l r e a d y h i r e d
p l a n n e r s t o d o f e a s i b i l i t y s t u d i e s o n
t h e p r o j e c t .
H e s a i d t h e p l a n n e r t h e s t a t e h i r e d
f o r t h e s t u d y f o u n d a h o u s i n g p r o j e c t
w o u l d b e t h e b e s t f i n a n c i a l r e t u r n t o
t h e s t a t e .
M o t t , w h o r e c e n t l y r e s i g n e d f r o m
t h e c o m m i t t e e d u e t o t h e c o n t r o v e r s y
s u r r o u n d i n g t h e p r o j e c t , s a i d h e t h i n k s
t h e d e p a r t m e n t o f l a n d s i s u s i n g t h e
r u l i n g a s a w a y t o b a c k a w a y f r o m t h e
p r o j e c t .
" T h a t ' s a n e a s y w a y t o g e t o u t o f
t h e i s s u e , " M o t t s a i d . " T o g e t t h e m -
s e l v e s o u t o f t h e h o t b o x , t h e y a r e
s a y i n g t h i s i s n ' t a n a p p r o p r i a t e u s e .
I t ' s a c o p o u t . "
A l t h o u g h t h e l a n d i s n o t l i k e l y t o
b e c o m e t o a g o v e r n m e n t - s p o n s o r e d
s u b d i v i s i o n , t h e p a r c e l i s s t i l l z o n e d
f o r r e s i d e n t i a l , a n d t h e l a n d s d e p a r t -
m e n t i s i n t e r e s t e d i n s w a p p i n g t h e
l a n d f o r a n o t h e r p a r c e l .
" T h e p i e c e o f l a n d i s o n t h e d i s -
p o s a l l i s t , " s a i d B i l l P e t z a k , s u p e r v i s o r
o f t h e M c C a l l l a n d s d e p a r t m e n t o f -
f i c e . " I f t h e r e i s n o c h a n g e i n t h e l a w ,
w e w i l l g e t r i d o f t h e p r o p e r t y . "
P e t z a k s a i d t h e d e p a r t m e n t w o u l d
p r e f e r t o s w a p t h a t l a n d f o r a n o t h e r
p a r c e l o f e q u a l v a l u e , p r e f e r a b l y t i m -
b e r l a n d o r c o m m e r c i a l p r o p e r t y .
" I ' v e m a d e i t k n o w n a r o u n d t h e
d e v e l o p m e n t c o m m u n i t y t h i s p a r c e l
m i g h t g o u p f o r e x c h a n g e i f t h i s d e a l
f a l l s t h r o u g h w i t h W I C A P , " h e s a i d .
N e a r b y r e s i d e n t s w a n t t o s e e t h e
l a n d d e v e l o p e d i n a w a y t h a t i s c o m -
p a t i b l e w i t h t h e a d j a c e n t
n e i g h b o r h o o d , a n d c o n s i d e r t h e c o n -
c e r n s o f n e a r b y l a n d o w n e r s w h e n
d e c i s i o n s a r e m a d e . "
" I ' m s u r e t h e r e a r e p e o p l e w h o
w o u l d l i k e t o s e e n o o n e t o u c h t h a t
l a n d , b u t t h a t ' s n o t r e a l i s t i c , " s a i d
D a v i d S i m m o n d s , a n e a r b y l a n d -
o w n e r . " I h o p e t h e y m a k e u s p a r t o f
t h e p r o c e s s . "
s-L
Judge says Realtors have standing 5I9-q0-1
in affordable housing lawsuit
BY MICHAEL WELLS
The Star -News
A judge ruled Tuesday that the Mountain Central
Board of Realtors has standing in its lawsuit against
the city of McCall's affordable housing laws.
Fourth District Judge Thomas Neville found that
the Mountain Central Board of Realtors has standing
and "the controversy is ripe for review"
The ruling came against the city's motions to throw
out the Realtors' challenge to the city's affordable
housing laws.
No date has been set for a hearing on the merits of
the case. Neville did order that the case be heard "as
soon as practicable."
"Obviously, we would have preferred a different
outcome, but this just simply means we get to argue the
case on its merits," City Manager Lindley Kirkpatrick
said. "We are confident we will prevail."
Last fall the board of Realtors sued the city over
its affordable housing laws that require builders
of new homes to pay an affordable housing fee and
require 20 percent of new developments to be afford-
able housing.
The pretrial motions were heard on Feb. 21 in
Cascade.
At that hearing, the city asserted that the board did
not have standing because it did not own property and
could not show "palpable. injury."
At that hearing, Neville did rule against the city's
motion to strike several affidavits by members of the
board of Realtors.
"I am pleased with the outcome and I am anxious
to move onto the actual heart of the matter, which
is the inclusionary zoning and linkage ordinance
part of it," said Ray Moore, president of the board
of Realtors.
"It has been our desire all along to get this thing
over with and get some answers," Moore said.
The Realtor board's lawsuit claims the city's af-
fordable housing laws are "arbitrary and capricious."
It also claims the laws are an illegal rent control and
"far exceed the city's zoning power under the Idaho
Land Use Planning Act."
The lawsuit also claims the city's affordable hous-
ing laws are an illegal taking of private property and
amount to an "unauthorized impact fee."
The lawsuit claims the laws are illegal and will
cause members of the Realtor association irreparable
harm.
In response to the lawsuit last fall, the city placed
a moratorium on building in McCall. The city then.
decided to allow building to continue if developers
sign a waiver agreeing to the city's affordable hous-
ing requirements. In March, the McCall City Council
extended the moratorium with the waiver exception
for a year.
"Community housing is a critical part of the com-
munity," Kirkpatrick said. "It is something we need
to implement to maintain our long-term economic
viability."
'This
means we get to
argue the case
on its merits. We
are confident we
will prevail.
- .McCall City
Manager Lindley
Kirkpatrick
AFFORDABLE HOUSING SEEKS A FOOTHOLD
Sketch courtesy VARHA
The next proposed project for VARHA is apartments on Deinhard Lane. This conceptual drawing shows how they would look. Story, Page A-10
s4ALA
///ogy
VARHA chief says McCall Avenue affordable
housing project sent wrong message
BY TOM GROTE
The Star -News
Nine lower -cost homes built on McCall Avenue
has sent the wrong message about the mission of the
Valley Adams Regional Housing Authority,VARHA's
executive director said.
Planning for the McCall Avenue project was well
underway before VARHA set up shop in August 2006
and the agency was assigned the job of marketing the
homes, which sell for between $173,500 and $176,800,
executive director Michael David said.
At that price, the homes are affordable only for
those at the upper end of VARHA's income guidelines,
while there is still no subsidized housing for lower -
income families, David said.
The McCall Avenue homes are still a good deal, but
VARHA has set its sights on building apartments, for
which the greatest demand exists, he said.
An Urgent Need
There was an urgent need for the city to provide
workforce housing when the McCall Avenue project
was conceived in early 2006, said Roger Millar, the
city's deputy city manager of infrastructure until
February 2007.
"That was a time when the market was on fire
and people said, `enough of this planning and policy
stuff, let's see some results on the ground,' " said
Millar, who now is director of the Missoula, Mont.,
City -County Office of Planning and Grants.
he nine lots on McCall Avenue
were seen as being the easiest to
develop first, he said. The lots had
been voluntarily donated by the de-
velopers of the adjacent Greystone
Village in return for credits on the city's now
defunct surcharges on building permits to
fund future projects.
"The lots were platted, the zoning was
there; all that was required to move forward
was a building permit," Millar said.
The city could have designated the homes
as rentals, or built apartments or condos on
the site, but that would have required a time-
consuming public process, Millar said.
In any event, rental housing or condos
would not have been compatible with the
surrounding neighborhood, he said.
It was known from the start that the sales
price of the McCall Avenue homes would
only be available to households in the up-
per end of the qualifying income brackets,
David said.
Maximum income to qualify for a home
marketed by VARHA is $85,000 per year for a
family of four and $65,000 for an individual.
results...
7 77
"At that
time people
anticipated •
buyers would
be banging
down the
doors."
—Michael David
"...the market
was on fire
and people
said, `enough
of this
planning and
policy stuff,
let's see some
—Roger Millar
Applicants Moved On
VARHA had a long list of applicants for
the homes at the time the project was being
planned, he said.
"At that time people anticipated buyers
would be banging down the doors," he said.
"We were offering our units at $175,000
while those at Jacob's Manor were listed at
$280,000."
However, delays pushed back the oc-
cupancy of the first home to July 2007. By
that time, the real estate market had cooled
and prices began to fall. Many of those who
had applied for a McCall Avenue home were
finding they could now afford homes in the
private sector, David said.
Three of the nine homes are occupied.
The first family moved in during July 2007,
a second family moved in at the end of
September 2007, and a third family moved
in during mid -April on a 90-day lease -pur-
chase option.
Spokesmen for the three families request-
ed their names not be used in this story.
See VARHA, Page A-10
VARHA
(Continued from Page A-1)
VARHA has j ust one other unit
in its inventory, a one -bedroom,
700-square-feet condo in the new
Park Street Plaza downtown,
which is listed for $156,156.
David said he could sell the
remaining six homes quickly if
Neighborhood Housing Services
of Boise, which built and owns
the homes, would lower its prices
to $150,000.
David is searching for grants or
other funding to help close the gap
between the purchase price and
what families can afford.
Bea Black, interim executive
director at NHS, did not respond
when sent an e-mail question by
The Star -News asking if her agency
was considering lowering prices.
NHS receives 15 percent of each
home sale as a "builders fee," and
VARHA receives 3.5percent of each
sale as an administrative fee.
Range of Products Needed
It was never the intent of
VARHA to only offer housing
similar to that on McCall Avenue,
David said.
"You need a wide range of
products, because the buyers are
all different with different -size
families," he said. "Some are OK
with a town home; some need a
yard and picket fence. You need a
variety of products, and it takes a
little while."
The limiting factor in develop-
ing new housing is the price of
land, and buying privately owned
land is still prohibitive despite the
slump in the real estate market,
David said.
VARHA has been working with
Valley County to develop 10 acres
of county-ownedland on Deinhard
Lane next to the county's McCall
courthouse annex. Current plans
call for building 85 to 100 apart-
ments with rents as low as $300
per month.
Complicating the situation is
the voiding by a judge in Febru-
ary of the mandatory housing
allocations and building permit
surcharges previously required
by the city of McCall and Valley
County.
VARHA had been counting on
those homes and fees to expand the
affordable housing base, but must
wait now for what are expected to
be a set of voluntary incentives
to entice developers to provide
homes or money for low-income
families.
The search continues for other
parcels owned by public agencies
on which affordable housing proj-
ects could be built.
VARHA to seek new developer
for Deinhard Lane apartments
BY TOM GROTE
The Star -News
The development of 10 acres
in McCall into apartments for
working-class families has faced
a setback with the removal of
Neighborhood Housing Ser-
vices of Boise as the project's
developer.
The Valley Adams Regional
Housing Authority's board of
directors on Monday approved
ending negotiations with NHS
to be the developer of 85 to 100
apartments on the 10 acres of
county -owned land along Dein-
hard Lane. The apartments
would rent for as low as $300 per
month.
The board told Executive
Director Michael David to invite
representatives of The Housing
Company of Boise to a meeting
next week about taking over the
role of developer.
The Housing Company is a
subsidiary of the Idaho Housing
and Finance Association and
placed a close second to NHS dur-
ing the selection process, David
said. The company manages 24
affordable properties located
around Idaho, according to the
group's Web site.
The change came after NHS
sent a notice in March that it
was paring back operations
due to "the national housing
market crisis and our strained
resources."
Among the changes was the
departure of Executive Director
Tom Lay and Community and
Real Estate Development Direc-
tor Mary Pridmore, both of whom
worked closely with David on the
Deinhard Lane project.
Up -Front Costs Covered
NHS interim Executive Direc-
tor Bea Black told David in a letter
on Monday that her organization
would still like to be involved in
the planning of the project but
that VARHA should pick another
firm to develop the site.
Neighborhood Housing Ser-
vices was the developer of nine
modular homes on McCall Av-
enue last year that were finished
months behind schedule. Two of
the nine homes, the first afford-
able housing project in Valley
County, have been sold and a
third is being occupied on a 90-day
lease -purchase option.
The change will work out for
the best because NHS wanted
Valley County to pay $75,000 to
$100,000 up front for site testing,
planning and engineering of the
Deinhard Lane project, David told
the VARHA board. The Housing
Company has tentatively commit-
ted to bear those costs as part of
the overall project, he said.
Current plans call for aportion
of the 10 acres to be developed into
apartments for which VARHA
would find tenants based on
household income guidelines.
The overall project would
see expansion of the Valley
County Courthouse Annex and
some commercial development.
Construction could start in the
spring of 2009 if all goes well,
David said.
Earlier on Monday, David re-
ceived conditional approval from
Valley County commissioners
to replace NHS on the Deinhard
Lane project. He said he made
the request prior to Monday's
VARHA board meeting in order
not to lose momentum.
VARHA Board Chair Greg
Lovell agreed with the tactic.
"The demand is greater than
ever," Lovell said. "The need is
huge."
Star -News File Photo
McCall officials and others break ground for the
McCall Avenue project in October 2006
McCall Avenue homes missed strong
market after construction delays
BY TOM GROTE
The Star -News
The company hired to build the nine units
of affordable housing on McCall Avenue faced
problems soon after it was hired, the former
head of the project's manager said.
As a result, the homes were not ready for oc-
cupation until five months later than originally
predicted. By that time, the surging housing
market had cooled and those who had been
looking at the homes went elsewhere.
The McCall Avenue project was not the first
time Neighborhood Housing Services of Boise
had built affordable homes for sale, but it was
the first time the nonprofit company had used
modular homes, said Tom Lay, who was NHS
executive director until mid -March.
"We wanted a manufacturedhome as opposed
to site building because there was too much
competition for framing crews," Lay said.
NHS signed a contract with SMS Custom
Builders of Pocatello to build the home sections
in eastern Idaho, ship them to McCall, place
them on site with cranes, and do the finish work
needed to allow the new owners to move in.
A formal ground -breaking ceremony was
held in October 2006 with McCall and NHS of-
ficials happily wielding shovels.
See HOMES, Page A-10
"They didn't have crews that
were capable of scheduling
themselves. We had to get out
the whip and chairs."
—Tom Lay
INSIDE
♦ Mix-up cast doubts on ownership of
McCall Avenue lots
♦ VARHA to seek new developer for
Deinhard Lane apartments
—Page A-10
Homes
(Continued from Page A-1)
Lay predicted at that time the
homes would be ready for families
to occupy in February 2007.
Problems With New Owner
Problems began later in the
fall of 2006, when SMS Custom
Builders was sold to a new owner,
Lay said.
"There was a consistent turn-
over of crews, and they didn't
have crews that were capable of
scheduling themselves," he said.
"We had to get out the whip and
chairs."
The first modular units were
not moved into place until March
2007, a month after the originally
predicted completion. The new
prediction for occupancy was
adjusted to early May and then
to late July.
"We were not overly concerned
about the quality of the work be-
ing done," Lay said of the SMS
crews. "There wasn't a sense of
urgency and they were defensive,
so we just decided it wasn't going
to happen."
NHS fired SMS from the
project and took over the work
of finishing the homes for oc-
cupancy, Lay said. NHS also
assumed responsibility for the
one-year construction warranty
that SMS would have been ex-
pected to provide.
Several complaints about the
homes began to come in as soon
as the first owner moved in, Lay
said. Those complaints including
improperly installed wood stoves,
ceiling cracks, inoperable cable
TV and telephone outlets, and
poorly hung doors.
Lay said NHS paid to have the
problems with the wood stoves
corrected in all nine homes. All
other complaints were handled
in a timely manner by workers
hired by NHS, he said.
Lay left his job as NHS after
more than seven years as part of
a general reduction in staff due to
the slumping housing market.
Dave Ochoa, the new owner
of SMS Customer Builders, now
located in Eagle, did not reply to
requests for an interview with
The Star -News.
McCall gives concept approval
to low-income apartments 3hAn
BY LUCIA V KNUDSON
The Star -News
The McCall City Council last week
granted preliminary approval to de-
velopers of low-income apartments
off Jacob Street.
The Housing Company of Boise was
given tentative approval to begin the
36-unit Valley Meadows project.
The council approved the con-
cept for the project, but continued
until March 11 the public hearing
to rezone the property to allow the
apartments.
If all approvals are given, work
on the project is scheduled to begin
this spring, officials for The Housing
Co. said.
Units would range from studios to
three -bedroom apartments with rent
ranging from $200 to $675 per month
based on family income.
The project also would include a
community center, on -site playground,
and resident and visitor parking on 3.5
acres donated by Valley County on the
north side of Jacob Street across from
the Jacob's Manor subdivision.
The council also will review a
development agreement at its March
11 meeting that will cover work in
planned future phases.
"It is my experience these things
get lost in the woodwork," Mayor Don
Bailey said.
See HOUSING, PageA-2
Graphic courtesy The Housing Co.
Sketch shows the design of one of the low -rent apartment
buildings planned for Jacob Street in McCall.
Housing
(Continued from Page A-1)
Among the conditions is a
promise to build a road to con-
nect Deinhard Lane and Jacob
Street when later stages come
on line.
The road is not planned for
the first stage but would be
needed if there is later expan-
sion.
The Housing Company also
will submit a park plan in lieu
of dedicating one acre to the
city for parks.
Kathryn Almberg of The
Housing Company urged quick
approval, reminding the coun-
cil about "spend or lose" federal
deadlines for tax credit dollars
that are funding the project.
No public comments were
entered during last Thursday's
public hearing on the concept
plan.
There are plans to change
the project's name, Almberg
said.
The county, city Valley
Adams Regional Housing Au-
thority are working jointly
with The Housing Company to
create the rental units for the
local workforce.
Demand would drive the
construction of more apart-
ments beyond the 36 intended
in the first phase.
Low-income apartments get approval
First phase of Valley
Meadows would
have 36 units
BY MICHAEL WELLS
The Star -News
The first phase of an af-
fordable housing apartment
complex in McCall received
preliminary approval from
the McCall Area Planning &
Zoning Commission Tuesday
night.
The preliminary plan for
the 36-unit Valley Meadows
apartments was given the
unanimous approval of the
commission.
The Housing Company, who
manages about 1,000 similar
apartments throughout Idaho,
would build and manage the
apartments on land donated
by Valley County.
The application will now go
to the McCall City Council for
preliminary approval.
While the project received
support, many residents in
Jacob's Manor and business
owners on Commerce ex-
pressed the need for a more
thorough look into the area's
drainage in the spring andtraf-
fic on Commerce Street.
The P&Z was split on
whether The Housing Com-
pany should build a new street
connecting the east side of the
development to Deinhard Lane
and Jacob Street, which would
give two routes to Deinhard
Lane.
Valley County plans to
donate 10 acres to the project,
but currently has donated
only seven acres. Any road
requirement would have to
have the county's approval to
go through the county land
adjacent to Deinhard Lane,
project architect Steve Ben-
ner said.
The new street was also
questioned by Commission
Member Kim Apperson. The
new street would not be a re-
quirement for the first phase
of the project, but would likely
be a requirement before later
phases of the project are ap-
proved.
A recreational pathway
would also require a deal
with the county to connect
the project to Deinhard Lane.
The first phase would develop
about 3.5 acres.
Public hearing comments
mostly pointed to the ar-
ea's drainage problem. The
Housing Company plans
stormwater swales on the
property to handle drainage
at the site.
"It's a virtual lake in the
s:41_4/44-d
V1//6
from McCall P&Z
spring," said Jacob Manor would be based on income, but
resident Alice Brown. "The wouldbebetween$200and$675
kids go swimming in there per month.
and the southside of the The Housing Company
neighborhood have had high is committed to owning the
water issues." apartment complex for at least
Final engineering of the 40 years. The company owns
project has not been com- similar units in Sandpoint,
pleted, Benner said. Couer d'Alene, Post Falls,
"I certainly got the mes- Weiser and Boise.
sage tonight that there are The buildings would be two
concerns about drainage," stories with one-story studio
Benner said. apartments located on the
Rents at the apartments ends of the buildings.
Apartment developer says it can handle high vacancy rates
BY LUCIA V KNUDSON
The StarNews
A proposed low-income
apartment complex in McCall
should remain viable even if
it sustains a high vacancy
rate, officials of The Housing
Company told the board of the
Valley Adams Regional Hous-
ing Authority on Tuesday.
The nonprofit developer of
the Valley Meadows project
is confident it has the cash
reserves to carry the 36-unit
project even if the vacancy
rate is as high as 20 percent
for a year.
The complex is planned for
about 3.5 acres of land owned
by Valley County between
Jacob Street and Deinhard
Lane.
The Housing Company,
based in Boise, will be spend-
ing about $6 million of in
mostly federal funding to build
Valley Meadows.
Financial planning is based
upon a standard vacancy rate
of 5 percent, said Kathryn
Almberg of The Housing
Company.
The vacancy rate at the com-
pany's projects in Sandpoint
and Coeur d'Alene, which
have resort -based economies
DEATHS
similar to McCall's, stands
between 5 and 6 percent, Ahn-
berg said.
What the vacancy rate
may be for McCall with its 20
percent unemployment rate is
unknown, but it could be about
7 percent, she said.
Demand for units in McCall
is down when comparing the
first market study done for
the apartments in 2008 with
its update in 2009.
Demand dropped from 135
to 68 after being calculated
based upon growth projections
of about 3 percent.
It was also based on pro-
jections of individuals or has nounpaidbills or defaults,
families sharing residences he said.
with another, those paying too "We're a pretty healthy
much for rent, orthoserenting organization," he said.
substandard quarters. The officials did not dis-
"This is exactly the kind close the amount of cash in
of project that should be hap- reserve.
pening (in McCall)," said Steve Gross income generated
Millemann, Valley County's from rents without any vacan-
representative on the VARHA cies is $235,000 per year for
board. However, Millemann 35 units. One of the 36 units,
worriedabout the contingency a three -bedroom apartment,
funding in event of vacancy would serve as the complex
rates above the standard. manager's lodging.
"We have the fiscal means The Housing Company
to carry us through," said could sustain the project for
Douglas Peterson, executive a year with a vacancy rate
director of The Housing of 20 percent, and for two to
Company three years if the rate is lower,
The Housing Company representatives said.
has a policy of keeping an Using high -quality con -
operating reserve to cover struction materials will help
contingencies, Peterson said. keep down maintenance costs
The nonprofit company also in years to come, they said.
Star -News News Page_ Announcements Page 1 of I
The Springs apartments earns highest energy rating
The Springs Apartments in McCall have earned a LEED Platinum certification from the U.S. Green
Building Council.
LEED stands for Leadership in Energy and Environmental
Design, and the Platinum certification is the highest possible
LEED certification.
The McCall complex consists of one-story and two-story
structures. It has has three buildings that contain a total of
36 living units with a mixture of studio, one -bedroom, two -
bedroom and three -bedroom apartments.
A total of 34 of the 36 apartments are currently rented,
manager Shannon Vick said.
4111104414104..
TYN
Ph. cm,' Csaea
The Spnngs apiunnents m McCall have reeen-ed a
prestigious energy and enntonnteutal award
There is an additional shared facility with an office, exercise room, laundry, gathering space and
accessible restrooms.
The 33,000 square -foot complex was completed at a cost of $5 million. The architecture and
engineering firm CSHQA was responsible for architecture, interiors and landscape architecture.
Some of the design features that led to the Platinum certification include:
• Structural Insulated Panels used for exterior walls and roofs.
• Solar LED lights in common areas.
• Highly efficient fiberglass -framed windows.
• Single -zone, split -system high -efficiency heat pumps.
• All -electric heating, cooling and water heating systems.
• Best management practices for stormwater to reduce potential water pollution.
• Durable, low maintenance fiber -cement siding and trim.
The Springs was also recently awarded a 2011 Grow Smart Award by Idaho Smart Growth.
The annual awards "recognizes the innovative work of communities, builders, planners, architects,
organizations, and developers whose work exemplifies smart growth principles," according to the
organization's Web site.
http://www.mccallstarnews.com/pages/announcements_page.php 2/9/2012