HomeMy Public PortalAboutResolution 18-04 McCall Housing Strategy ReportCity of McCall
RESOLUTION 18-04
A RESOLUTION OF THE CITY OF MCCALL, IDAHO, ADOPTING THE 2018 MCCALL
HOUSING STRATEGY REPORT, PROVIDING FOR RELATED MATTERS, AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the McCall Housing Strategy was prepared by consultant team of Logan Simpson and
Zions Finance to look at the housing issue in McCall and provide recommendations to create more
affordable housing options for local residents to be able to work and live in McCall; and
WHEREAS, the City of McCall conducted an extensive planning process as part of the McCall In
Motion process involving members of the McCall community which examined the need for housing,
role in economic development, importance to the workforce, impact on transportation and need to
retain year around community; and
WHEREAS, the results of the planning process suggested recommendations in order to implement
the Plan; and
WHEREAS, such suggestions are appropriate as a 2018 McCall Housing Strategy; and
WHEREAS, the McCall Housing Strategy is a planning document to assist in the creation of funding
sources, regulations, programs and policies to create `local' housing options; and
NOW, THEREFORE, BE IT RESOLVED, by the Mayor and City Council of the City of McCall,
Valley County, Idaho that:
The McCall Housing Strategy Report is adopted and a copy of the Plan is attached hereto as Exhibit
1, and by this reference incorporated herein.
This resolution shall be in full force and effect upon its passage and approval.
Adopted this l lth day of January, 2018.
A ES
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January 2018
2 | MCCALL IN MOTION
McCall Area Housing Study | 3
4 | MCCALL IN MOTION
McCall has a substantial number of second homes and short-term vacation rentals, as well as a high
percentage of employment in hospitality industry sectors that serve the tourism and second-home
markets. These employment sectors include accommodation and food services, retail trade, arts,
entertainment, and recreation industries. Average wages in hospitality-related industries in McCall are
lower than the average wages citywide, and employees in this sector are faced with a shortage of
housing. In order to maintain the small-town feel of McCall and meet the vision of the McCall Area
Comprehensive Plan, residents should be able to live and work in the City. The largest demand for
housing comes from the local workforce who would benefit from new units throughout the City. This
report examines the current and projected housing situation in McCall and makes recommendations for
future housing policies that will meet the needs of McCall as an emerging mountain-tow.
Major Findings
Demographics
x McCall grew significantly from 2000 to 2010, from 2,206 persons to 3,003 persons, or an
average annual growth rate of 3.13 percent;
x McCall’s full-time population has remained flat since 2010;
x The daytime population is 5,127 persons, due to the large number of commuters into McCall for
employment;
x The average household size is 2.91 persons;
x The median household income in McCall is $49,141; in comparison, the median household
income in the United States is $59,039;1
x The median age is 45.5 years, significantly higher than the U.S. average of 37.8 years; and
Employment
x Hospitality-related industry sectors account for nearly half of employment in McCall:
Accommodation & Food Services = 23% of all employment; Retail Trade = 17%, and Arts,
Recreation & Entertainment = 6%;
x The above-listed hospitality sectors are among the five lowest-paying industry sectors in McCall;
x 39% of McCall households have 2 or more workers, higher than the County (28%) and the State
(34%);
x Major employers in the McCall Area include the U.S. Forest Service, McCall-Donnelly School
District, Ridley’s Market, and St. Luke’s Medical Center.
x 82% of employees in McCall live outside of the City and commute into the City to work; and
x 40.5% of commuters are traveling greater than 50 miles to work in McCall, which significantly
impacts employees, families, and their involvement in the McCall community beyond their work
shift. Employees commuting less than ten miles make up 38.5% of commuters, while 12.8%
travel 10 to 24 miles and 8.3% travel a significant 25 to 50 miles to their job.
1 www.businessinsider.com/us-census-median-income-2017-9
McCall Area Housing Study | 5
Land Use
x McCall has undeveloped land, but much of it is on the outskirts of the City or in the Area of
Impact, and may not be ideal for locally-serving housing because it is not close to essential
services such as grocery stores, medical services, child care or public transit;
x Today, half of the City’s land is zoned for, or occupied by, single-family residential housing; and
x Many primary homes are being converted to second homes and short-term rentals, thereby
contributing to the recent minimal growth of the year-round population.
Housing
x The median home value in McCall is $206,800, which is higher than the State median value of
$162,900, but lower than the County median value of $221,500.2
x Only 27% of housing units in McCall are owner-occupied;
x There is a lack of long-term rental availability in the City – most rentals are seasonal;
x Based on HUD guidelines for affordability, the maximum home prices for the following groups are
as follows:
TABLE 1: HOME PRICE AFFORDABILITY BASED ON HUD GUIDELINES
30% AMI 30%-50% AMI 50%-80% AMI 80%-100% AMI
$17,093 $72,205 $155,024 $210,197
x Because homes cannot be purchased for the amounts shown for the under 50% of AMI
population, rental units need to be available for this group. No more than 30 percent of incomes,
based on HUD guidelines, should be spent on housing and utilities;
x Affordable short-term rental units are lacking in McCall; and
x The City lacks at least 700 units (rental or owner-occupied) for the local workforce based on
current household incomes; there are even more units needed when commuters are considered.
Recommendations
McCall will need to use a combination of several funding strategies in order to achieve its housing goals.
Without a dedicated funding source, the community will not have sufficient funds to implement many of
the housing strategies. The applicability of various strategies may also change over time, as economic
conditions change. For example, increasing the local option tax (LOT) would be a good option for McCall,
which could increase its current revenues of $1.1 million annually, just by increasing the one percent
charged on all non-grocery retail sales to two percent.
Funding and Implementation Tools
Several funding and implementation tools were considered in this report, including:
x Urban Renewal District (URD)
x Land Banking
x Creative Micro and Tiny Housing Development
x Inclusionary Housing Ordinance
x Expedite Approvals for Price-Restricted Projects
x Local Option Tax (LOT) – Tourism
x Local Option Tax (LOT) – Streets
2 Source: 2015 American Community Survey (ACS)
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x Accessory Dwelling Units
x Federal Housing Tax Credits
x Community Land Trust (CLT)
x Business Housing Co-Op
x City Employee Housing Program
x Transferable Development Rights (TDR)
x Green Initiatives
The following are the tools that were determined to be the most viable for McCall:
x Land banking
x Small home/manufactured housing developments
x Urban Renewal Area (URD)
x Local option taxes
x Other
These strategies are discussed in more detail in Chapter 6: Housing Strategies and Implementation Plan.
McCall Area Housing Study | 7
Existing conditions are evaluated in terms of current demographic profiles of the community, as well as
current land use patterns. Demographic groups and stages of the lifecycle play an important role in
determining housing needs. It is important for a community to meet the needs of residents at all ages so
that young families can live in a community and older residents can “age in place.”
Life-Cycle Housing
Population
Population statistics for McCall vary slightly depending on the source, but are around 3,000 persons.
Based on United States 2000 and 2010 Census data, McCall had a 2000 population of 2,206 persons and
a 2010 population of 3,003 persons, reflecting an average annual growth rate of 3.13 percent. However,
the 2016 population, based on ESRI data, has declined slightly since 2010 to an estimated 2,912 persons,
suggesting very little permanent population growth in the City.3 The daytime population in the City is
5,127 persons,4 reflecting the large number of persons who commute into the City as their place of
employment.
Another source, the American Community Survey Census (ACS), estimates McCall’s 2015 population at
2,955, slightly down from the 3,003 persons of 2010 and similar to the ESRI projection for 2016. Future
population projections will be highly dependent on the ability of the community to provide more local
housing rather than primarily second-home growth.5
3 Source: ESRI Community Profile
4 Source: ESRI Community Profile
5 The population from second homes is not included in the Census data, although the City must still provide services for this
population when it is in residence in the City.
8 | MCCALL IN MOTION
Based on information provided in the McCall Area Comprehensive Plan, future population growth is
projected as shown below:
TABLE 2: POPULATION PROJECTIONS
Actual Projected
Year 1990 2000 2010 2015 2020 2030 2040
Population – 5 Year Rate of Change 2,285 2,092 2,951 3,106 3,269 3,622 4,012
Population – 10 Year Rate of Change 2,285 2,092 2,951 3,106 3,570 4,717 6,231
1.03% 2010-2015 (Census Estimates, City of McCall, 2010 Census to July 1, 2015
2.82% 2005-2015 (City of McCall Historical Growth Rate (2005-2015)
Households
Age
The median age in McCall was 40.9 years old in 2010; it increased to 45.5 by 2016.6 While the U.S.
population has also been aging, this has not occurred at quite the rate of McCall. In 2010, the median age
nationwide was 37.2 years; by 2015 it was 37.8 years. This age shift suggests that younger people (25-
34) are leaving the area, likely due to a lack of employment or housing opportunities. Older people are
also choosing to retire in the area.
FIGURE 1: MCCALL AGE TRENDS (SOURCE: ESRI COMMUNITY PROFILE; U.S. CENSUS BUREAU)
Population pyramids are used to compare the relative age of the population compared to surrounding
areas. Valley County shows an extremely large bulge in the population between 45 and 69 years.
6 Source: ESRI Community Profile
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0-4 5-9 10-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Age Trends - McCall
2010 2016 2021
Source: ESRI Community Profile; U.S. Census Bureau, Census 2010 Summary File 1. ESRI forecasts for 2016 and 2021.
McCall Area Housing Study | 9
FIGURE 2: VALLEY COUNTY AGE PYRAMID (2015 ACS)
The demographic breakout for McCall is decidedly distinct, with a relatively small percentage of the
population between 25 and 40 years.
FIGURE 3: MCCALL AGE PYRAMID (SOURCE: 2015 ACS)
20%15%10%5%0%5%10%15%20%
Under 5 Years
5 to 9 years
10 to 14 years
15 to 19 years
20 to 24 years
25 to 29 years
30 to 34 years
35 to 39 years
40 to 44 years
45 to 49 years
50 to 54 years
55 to 59 years
60 to 64 years
65 to 69 years
70 to 74 years
75 to 79 years
80 to 84 years
85 years and over
Valley County
% Female % male
20%15%10%5%0%5%10%15%20%
Under 5 Years
5 to 9 years
10 to 14 years
15 to 19 years
20 to 24 years
25 to 29 years
30 to 34 years
35 to 39 years
40 to 44 years
45 to 49 years
50 to 54 years
55 to 59 years
60 to 64 years
65 to 69 years
70 to 74 years
75 to 79 years
80 to 84 years
85 years and over
McCall City
% Female % Male
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Household Size
The average household size is 2.91 persons; in comparison, the United States average household size is
2.58 persons.7
Independent Living
While independent living facilities are targeted to the population age 55 and over, most research shows
that these facilities are generally sought after by those aged 70 and older. The following table shows
those individuals that may have special needs for housing due to difficulties with self-care and is a
relatively small, albeit growing portion of the population.
TABLE 3: ELDER POPULATION (SOURCE: 2015 ACS)
Description 2000 2015
McCall City
Individuals Over 65 with Self-Care Difficulty8 26 23
Individuals Over 65 with Independent Living Difficulty 9 24 77
Valley County
Individuals Over 65 with Self-Care Difficulty 58 139
Individuals Over 65 with Independent Living Difficulty 104 280
Adams County
Individuals Over 65 with Self-Care Difficulty 45 46
Individuals Over 65 with Independent Living Difficulty 81 115
Combined Counties
Individuals Over 65 with Self-Care Difficulty 103 185
Individuals Over 65 with Independent Living Difficulty 185 395
Employment
Employment
The Idaho Department of Labor reports that the largest employment sectors in McCall are
Accommodation and Food Services, totaling 23 percent of total employment in the City. Retail Trade
accounts for another 17 percent of total employment, while Arts, Entertainment and Recreation account
for 6 percent. Wages in these industries are all relatively low when compared with other employment
sectors.
TABLE 4: MCCALL EMPLOYMENT BY SECTOR (SOURCE: IDAHO DEPARTMENT OF LABOR)
Sector Employers % Employers Employment % Employment Average
Wage
Agriculture, Forestry,
Fishing and Hunting 4 1% 26 1% $35,297
Mining, Quarrying, and
Oil and Gas Extraction - - - - -
Utilities - - - - -
Construction 94 25% 170 5% $32,501
7 Source: ESRI Community Profile
8 Self-care difficulty means that because of a physical, mental or emotional condition, lasting six months or more,
the person has difficulty dressing, bathing or getting around inside the home.
9 Independent living difficulty means that because of a physical, mental or emotional problem, the person has
difficulty doing errands alone such as visiting a doctor’s offi ce or shopping.
McCall Area Housing Study | 11
Sector Employers % Employers Employment % Employment Average
Wage
Manufacturing 4 1% 29 1% $40,098
Wholesale Trade 5 1% 7 0% $43,252
Retail Trade 29 8% 524 17% $28,158
Transportation and
Warehousing 5 1% 46 1% $43,027
Information - - - - -
Finance and Insurance 11 3% 94 3% $56,405
Real Estate and Rental
and Leasing 34 9% 83 3% $23,899
Professional, Scientific,
and Technical Services 26 7% 45 1% $38,282
Management of
Companies and
Enterprises
- - - - -
Administrative and
Support and Waste
Management and
Remediation Services
14 4% 58 2% $37,565
Educational Services 6 2% 175 6% $37,905
Health Care and Social
Assistance 30 8% 307 10% $62,330
Arts, Entertainment, and
Recreation 19 5% 199 6% $18,952
Accommodation and
Food Services 50 13% 731 23% $22,139
Other Services (except
Public Administration) 26 7% 104 3% $19,202
Public Administration 6 2% 477 15% $48,566
Total 373 100% 3,157 100% $35,773
Sorted by wage, the five lowest wage-paying industry sectors in McCall include the hospitality sectors
listed above.
x Arts, Entertainment and Recreation ($18,952)
x Other Services (except Public Administration ($19,202)
x Accommodation and Food Services ($22,139)
x Real Estate and Rental Leasing ($23,899)
x Retail Trade ($28,158)
Comparatively, industry wages are slightly higher in McCall than in the County, but are generally lower
than average wages in the State.
12 | MCCALL IN MOTION
TABLE 5: WAGES BY SECTOR (SOURCE: IDAHO DEPARTMENT OF LABOR)
Sector McCall Valley
County
McCall
Percent of
County
Wage
Idaho
McCall
Percent of
State Wage
Agriculture, Forestry, Fishing
and Hunting $35,297 $38,036 93% $33,998 104%
Mining, Quarrying, and Oil and
Gas Extraction --- --- --- $72,116 ---
Utilities --- $78,774 --- $81,599 ---
Construction $32,501 $35,772 91% $41,440 78%
Manufacturing $40,098 $37,872 106% $55,481 72%
Wholesale Trade $43,252 $56,534 77% $56,593 76%
Retail Trade $28,158 $26,816 105% $29,715 95%
Transportation and
Warehousing $43,027 $41,244 104% $39,202 110%
Information --- $72,339 --- $49,187 ---
Finance and Insurance $56,405 $55,281 102% $58,090 97%
Real Estate and Rental and
Leasing $23,899 $22,486 106% $33,243 72%
Professional, Scientific, and
Technical Services $38,282 $43,677 88% $60,183 64%
Management of Companies
and Enterprises --- --- --- $78,746 ---
Administrative and Support
and Waste Management and
Remediation Services
$37,565 $36,578 103% $31,580 119%
Educational Services $37,905 $36,239 105% $36,372 104%
Health Care and Social
Assistance $62,330 $56,179 111% $40,929 152%
Arts, Entertainment, and
Recreation $18,952 $18,776 101% $18,054 105%
Accommodation and Food
Services $22,139 $20,998 105% $15,326 144%
Other Services (except Public
Administration) $19,202 $20,664 93% $28,456 67%
Public Administration $48,566 $45,293 107% $39,814 122%
Total $35,773 $35,133 102% $39,658 90%
According to the American Community Survey (ACS), 39 percent of McCall households have 2 or more
workers. This is higher than both the County (28 percent) and State (34 percent). A second wage may be
necessary by many households in order to afford to live in McCall.
TABLE 6: PERCENT OF HOUSEHOLDS BY NUMBER OF WORKERS (SOURCE: 2015 ACS)
Number of Workers per Household McCall Valley County Idaho
No workers 32% 37% 27%
1 worker 29% 34% 38%
2 workers 34% 24% 29%
3 or more workers 5% 4% 5%
McCall Area Housing Study | 13
Incomes
The median household income in McCall is $49,141, which is higher than the State’s median of $47,583
and the County’s median of $48,384.10 In fact, the median household income in McCall is more than
twice the average wage paid in any of the hospitality industries, with the exception of Retail Trade.
Given the relatively low wages in many industries in McCall, it is apparent that many lower-income
workers may not actually live in the City. The daytime population is significantly higher than the resident
population, again indicating that many people commute into McCall for employment. Therefore, their
incomes do not lower the “median household income” in the City.
Household incomes in McCall are compared with housing prices to assess affordability for different
income ranges. The income ranges shown below are based on HUD’s guidelines for affordability and will
be used in the housing section of this study.
TABLE 7: HOUSEHOLD INCOMES IN MCCALL (1999, 2009, AND 2015 ACS)
McCall City AMI Income
Range 1999 2009 2015 % Change
1999-2015
% Change
2009-2015
Low Income
Households <50% $0-
$28,300 384 180 297 -23% 65%
Moderate Income
Households 50-80% $28,300-
$45,300 195 309 165 -15% -47%
Median Income
Households 80-120% $45,300-
$67,950 176 370 179 1% -52%
High Income
Households 120-200% $67,950-
$113,250 131 204 249 91% 22%
Very High-Income
Households >200% $113,250+ 34 132 88 157% -33%
The following table clearly shows the impacts of the economic downturn in 2008 on the area median
income.
FIGURE 4: MCCALL INCOME TRENDS (SOURCE: 1999, 2009, AND 2015 ACS)
Commuter Data
10 Source: American Community Survey (ACS) 2015 5-year average
0
500
1,000
1,500
1999 2009 2015
McCall Incomes
<50% AMI
50-80% AMI
80-120% AMI
120-200% AMI
>200% AMI
14 | MCCALL IN MOTION
McCall has a significant proportion of its workforce commuting in from nearby communities. This is
unsurprising, given the data and feedback about housing availability, but also very common in any type of
resort or tourism community. If too much of the workforce needs to commute in to work, the culture and
character of the community outside of business hours suffers. By improving and maintaining local
housing options, McCall will be able to reduce the need for a commuting workforce and maintain the local
community of people who can work and live in McCall.
The Census reports detailed commuting data on an inflow and outflow basis, with 2014 as the most
recent year available.11 This information tells us that a large majority of the workforce is commuting in to
McCall to work, but lives outside the City in places like Boise, Council, New Meadows, and Donnelly. In
2014, 1,739 of McCall employees commuted in to work from outside areas and 367 of those working in
McCall also lived in McCall. An additional 509 McCall residents commute to work outside the City. This
means that of those that work within the City, 82 percent of employees are commuting from outside and
are not residents.
FIGURE 5: MCCALL COMMUTER DATA (SOURCE: U.S. CENSUS BUREAU – ONTHEMAP)
It’s also important to note that of those commuting into McCall, the largest proportion is commuting
greater than 50 miles one-way to work; 40.5 percent of commuters are traveling greater than 50 miles,
which significantly impacts both the employee and their involvement in the McCall community beyond
their work shift. The second largest group does include those living and working in the City; employees
commuting less than ten miles make up 38.5 percent of the McCall workforce. 12.8 percent travel 10 to
24 miles and 8.3 percent travel a significant 25 to 50 miles to their job. The majority of those commuting
in to work are coming from the south of McCall.
11 Source: U.S. Census Bureau - OnTheMap
Employed in
McCall, Live Outside
Employed and
Live in McCall
Live in
McCall,
Employed
Outside
1,739 people – Employed in McCall, Live Outside
509 people – Live in McCall, Employed Outside
367 people – Employed and Live in McCall
McCall Area Housing Study | 15
FIGURE 6: COMMUTER TRAVEL PATTERNS TO MCCALL (SOURCE: U.S. CENSUS BUREAU – ONTHEMAP)
The following table shows the city of origin for employees working in McCall. This table includes only
those with five or more workers, but a more complete list is in the Appendix for reference. For those
commuting from outside of McCall, Boise has the highest number of workers. This is likely partially due to
employees in the construction industry who live in Boise and come to McCall for work.
TABLE 9: WHERE WORKERS LIVE WHO ARE EMPLOYED IN MCCALL (LOCATIONS WITH 5 OR MORE) (SOURCE: U.S. CENSUS BUREAU)
Residence Number of Employees Share
McCall, ID 367 17.4%
Boise City, ID 106 5.0%
Cascade, ID 68 3.2%
Meridian, ID 58 2.8%
Nampa, ID 46 2.2%
New Meadows, ID 33 1.6%
Caldwell, ID 25 1.2%
Council, ID 25 1.2%
Mountain Home, ID 21 1.0%
Donnelly, ID 18 0.9%
Lewiston, ID 16 0.8%
Twin Falls, ID 14 0.7%
Marsing, ID 12 0.6%
Weiser, ID 11 0.5%
Eagle, ID 10 0.5%
Homedale, ID 10 0.5%
Kuna, ID 10 0.5%
Pocatello, ID 10 0.5%
Coeur d'Alene, ID 9 0.4%
Baker City, OR 7 0.3%
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Residence Number of Employees Share
Idaho Falls, ID 6 0.3%
Glenns Ferry, ID 5 0.2%
Middleton, ID 5 0.2%
Payette, ID 5 0.2%
Rathdrum, ID 5 0.2%
Robie Creek, ID 5 0.2%
Pendleton, OR 5 0.2%
Land Use
Today, nearly 89 percent of the City’s developable land is occupied by, or is zoned for, single-family
residential uses.12 The remaining land is divided among higher-density residential uses, the Central
Business District, commercial and industrial uses, and public lands. In recent years, more mixed-use and
multifamily residential projects have been built in the City, specifically in downtown and along the Third
Street Corridor. Outside City limits, land uses in the Area of Impact are primarily large-lot rural and estate
residences, master-planned communities, agriculture, and public lands.
While the McCall area has substantial land available for additional growth, much of it is in the western and
southern areas of the community. These areas are furthest from essential services and employment and
often lack infrastructure necessary to provide development that would be affordable. Therefore,
redevelopment options on land located closer to downtown and highway corridor will likely need to be
considered as part of the City’s housing strategies.
12 Based on low-density residential, rural residential and estate residential zoning.
McCall Area Housing Study | 17
FIGURE 7: MCCALL LAND USE (SOURCE: VALLEY COUNTY ASSESSOR)
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Housing
As the table below shows, taken from the McCall Area Comprehensive Plan, there has been a sharp
increase in the number of second homes, with a decreasing number of permanent resident units in the
City.
FIGURE 8: MCCALL RESIDENTIAL UNITS BY TYPE
Most of the existing housing stock was built as single-family. Detached single-family units are, on average,
substantially more expensive than multi-family units.
FIGURE 9: RESIDENTIAL UNIT TYPES
0
500
1000
1500
2000
2500
3000
3500
4000
2000 2010 2011 2012 2013 2014
Total Housing Units
Population*
Second Homes
Permanent Resident Units
Linear (Second Homes )
Linear (Permanent Resident
Units)
71%
4%
5%
8%
5%
6%
0%
1%
Single Family
Townhomes
Duplex
3-4 Unit Apartment
5 - 9 Unit Apartment
10 - 19 Unit Apartment
20 - 49 Unit Apartment
Mobile Home
Townhomes
Duplex
3-4 Unit Apt
5-9 Unit Apt
10-19 Unit Apt
Mobile Home
20-49 Unit Apt
Single-Family
McCall Area Housing Study | 19
Primary vs Secondary Residences
The American Community Survey (ACS) estimates that only 27 percent of housing units in McCall are
occupied, with 73 percent of units vacant, representing the extremely high second-home population in
the area. Of the owner-occupied units, slightly more than half are owner-occupied rather than renter-
occupied.
TABLE 10: PERCENT OF HOMES BY OCCUPANCY (SOURCE: ACS 2015)
Percent of Units
Occupied Units 27%
Owner Occupied 15%
Renter Occupied 12%
Vacant Units 73%
TOTAL UNITS 100%
Additional ACS data indicates that of all units listed as vacant, 97 percent of units were for seasonal,
recreational, or occasional use, though no indication is made for what percent of those are secondary
homes v. rental units.
TABLE 11: PERCENT OF HOMES BY VACANCY CLASSIFICATION (SOURCE: ACS 2015)
Vacancy Classification Percent of Units
For Rent 1%
Rented, Not Occupied 0%
For Sale Only 0%
Sold, Not Occupied 1%
For Seasonal, Recreational, or Occasional Use 97%
For Migrant Workers 0%
Other Vacant 1%
This data is corroborated by research conducted by Zions Public Finance, Inc. (ZPFI) regarding the rental
home market in McCall. Based on this research, long-term rental units are far and few between in McCall.
There are a few apartment complexes, most of which would not provide rent rates without detailed
information regarding renter status. On Zillow,13 only one single-family 'home' (cabin) was available for
rent. However, the options were numerous if looking to rent a vacation home for a week. Long-term
rentals identified as part of this study are shown below:
TABLE 12: LONG-TERM RENTAL UNITS AND RENT RATES IN MCCALL
Type Year
Built Size # of
Beds
# of
Baths Address Monthly
Rent Availability
Cabin 1974 1,008 sq ft 2 1 285 Rio Vista
Blvd $1,300
Cottage 1991 1,200 sq ft 3 2 1102 Buckboard
Way $1,575
Detached House 3 2 $3,000
Condo 3 2 $1,400
Timbercrest Condos New 1000 N 2nd
Street No
Availability
13 Zillow is an on-line real estate marketplace with listings of for-sale and rental properties.
20 | MCCALL IN MOTION
Type Year
Built Size # of
Beds
# of
Baths Address Monthly
Rent Availability
Ponderosa Arms
Apartments (Timbers)
2008
Remodel 770 sq ft 2 1 1305 Ponderosa
Avenue $850 No
Availability
The Springs II
Apartments 2010 508-1,115
sq ft 0-3 325 Valley
Springs Road No
Availability
Apartments 1960 1401 Davis
Street No
Availability
Multi-Family 2007 1,230 sq ft 3 3 607 N 3rd Street No
Availability
These rental rates will be evaluated further in the analysis of housing affordability.
McCall Area Housing Study | 21
Housing affordability is used to compare the existing housing stock with average wages in an area and to
assess if there are sufficient units available for all income categories. HUD guidelines suggest that no
more than 30 percent of a household’s income should be spent on housing costs (rent, mortgage
payment, insurance, property taxes and utilities).
Housing affordability is further based on the Area Median Income (AMI) as determined by the US
Department of Housing and Urban Development (HUD). The AMI is then adjusted by household size, as
shown in the following table. The average AMI for a household of about 3 persons has been used in this
analysis. These values are used when determining the total number of housing units currently locally-
serving in McCall for various income levels.
TABLE 13: VALLEY COUNTY, ID AREA MEDIAN INCOMES (SOURCE: HUD)
Persons per Household
Valley County, ID 1 2 3 4 5 6 7 8
30% of AMI $12,094 $15,094 $16,988 $18,863 $20,381 $21,881 $23,400 $24,900
50% of AMI $22,000 $25,150 $28,300 $31,400 $33,950 $36,450 $38,950 $41,450
80% of AMI $32,250 $40,250 $45,300 $50,300 $54,350 $58,350 $62,400 $66,400
100% of AMI $40,313 $50,313 $56,625 $62,875 $67,938 $72,938 $78,000 $83,000
The following table lists the percent of households by household income in McCall.14 About 53 percent
of McCall households earn at least 100 percent of AMI, while approximately 47 percent earn less than
100 percent of AMI.
TABLE 14: PERCENT OF HOUSEHOLDS BY INCOME (SOURCE: 2015 ACS)
Income Percent of Households Cumulative Percent AMI Group
Less than $10,000 6.6% 6.6% 30%
$10,000 to $14,999 2.5% 9.1% 30%
$15,000 to $19,999 9.1% 18.2% 30%
$20,000 to $24,999 7.2% 25.4% 50%
$25,000 to $29,999 5.0% 30.4% 50%
$30,000 to $34,999 5.2% 35.6% 80%
$35,000 to $39,999 9.1% 44.7% 80%
$40,000 to $44,999 2.6% 47.2% 80%
$45,000 to $49,999 3.9% 51.1% 80%
$50,000 to $59,999 8.7% 59.8% 100%
$60,000 to $74,999 10.7% 70.6% Above 100%
$75,000 to $99,999 17.2% 87.7% Above 100%
$100,000 to $124,999 6.1% 93.9% Above 100%
$125,000 to $149,999 0.8% 94.7% Above 100%
$150,000 to $199,999 2.4% 97.0% Above 100%
$200,000 or more 3.0% 100.0% Above 100%
14 Source: 2015 ACS
22 | MCCALL IN MOTION
Home Values
The American Community Survey (ACS) reports the median home value in McCall is $206,800, which is
higher than the State median value of $162,900, but lower than the County median value of $221,500.
The median home value in McCall is nearly identical to the maximum home cost (assuming 30 percent of
income is spent on housing and utilities) for those making the area median income (AMI).15 However,
there are significant shortages in available housing stock for those making less than 100 percent of AMI,
especially for households below 50 percent of AMI. Households below 50 percent AMI typically cannot
afford to purchase a home and rely on rental options; therefore, it is essential to have sufficient rental
options for low-income households.
TABLE 15: INCOMES AND HOUSING AFFORDABILITY
<30%
AMI
30-50%
AMI
50-80%
AMI
80-100%
AMI
Greater than
100% AMI
Annual Income $16,988 $28,300 $45,300 $56,625 >$56,625
Max Home Price $17,093 $72,205 $155,024 $210,197 >$210,197
Percent of Total Homes 1% 3% 16% 15% 65%
As a comparison, the following tables summarize the total number of housing units by market value for
McCall and the Impact Area,16 according to the Valley County Assessor’s Office.17
TABLE 16: MCCALL HOMES BY MARKET VALUE (SOURCE: VALLEY COUNTY ASSESSOR’S OFFICE)
Home Value Max Homes Percent of Homes Cumulative Percent
$9,999 17 1% 1%
$14,999 8 0% 1%
$19,999 11 0% 1%
$24,999 3 0% 1%
$29,999 16 1% 2%
$34,999 1 0% 2%
$39,999 - 0% 2%
$49,999 11 0% 2%
$59,999 35 1% 3%
$69,999 57 2% 5%
$79,999 7 0% 5%
$89,999 65 2% 7%
$99,999 21 1% 8%
$124,999 154 5% 13%
$149,999 265 8% 21%
$174,999 255 8% 29%
$199,999 265 8% 37%
$249,999 459 14% 52%
$299,999 419 13% 65%
15 Based on average home utility costs. Because the same utility costs were used for all income levels, utility costs
will have a greater impact on lower-income households and the maximum home price affordable to lower-income
households.
16 The Area of Impact (AOI) is a geographical area where a city is expected to grow and annex property at some future time.
§67-6526(b) states that, “In defining an Area of City Impact, the following factors shall be considered: (1) trade area; (2)
geographic factors; and (3) areas that can be reasonably expected to be annexed to the city in the future.”
17 It is important to note that assessed value is often lower than market value in McCall.
McCall Area Housing Study | 23
Home Value Max Homes Percent of Homes Cumulative Percent
$399,999 579 18% 83%
$499,999 264 8% 91%
$749,999 153 5% 96%
$999,999 57 2% 98%
$1,499,999 44 1% 99%
$1,999,999 21 1% 100%
Greater than $2,000,000 13 0% 100%
TOTAL 3,200 100%
FIGURE 10: MCCALL MARKET VALUE OF RESIDENTIAL UNITS
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
McCall - Home Values
24 | MCCALL IN MOTION
The table below combines McCall and the Area of Impact and demonstrates that housing stock in McCall
is more affordable than housing stock in the Area of Impact. Ideally, additional housing would be located
in McCall because of the closer proximity to essential services, employment, and public transit.
Figure 11: McCall and Area of Impact Housing Units by Market Value
FIGURE 12: MCCALL AND AREA OF IMPACT RESIDENTIAL UNITS BY MARKET VALUE
Housing Affordability
The following table summarizes the existing conditions for housing in McCall and the Impact Area, based
on AMI. Sixty percent of homes in McCall/Area of Impact are affordable to the 44 percent of households
above 100 percent AMI, while only 4 percent of homes are affordable to the 16 percent of households
earning between 30 and 50 percent of AMI. The one area where there is not a difference in current supply
and demand is between 50 and 80 percent AMI, which has 18 percent of the housing stock and 18
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Housing Units by Market Value
McCall % of Homes Impact Area % of Homes
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Combined - Housing by Market Value
McCall Area Housing Study | 25
percent of households. The analysis below does not include rentals which are analyzed separately. The
Area of Impact is also included as a basis for comparison with McCall.
TABLE 18: PERCENT OF HOMES AFFORDABLE BY AMI
<30%
AMI
30-50%
AMI
50-80%
AMI 80-100% AMI Greater than
100% AMI
Annual Income $16,988 $28,300 $45,300 $56,625 >$56,625
Max Home Price $17,093 $72,205 $155,024 $210,197 >$210,197
Total McCall/AOI Homes 32 127 576 540 1,925
Percent of McCall/AOI Homes 1% 4% 18% 17% 60%
Percent of McCall/AOI Households 12% 16% 18% 10% 44%
Difference 11% 12% 0% 7% 16%
Total Impact Area Homes 2 40 222 206 1,315
Percent of Impact Area Homes 0% 2% 12% 12% 74%
Total Residential Units 34 167 798 746 3,240
Percent of Total Residential Units 1% 3% 16% 15% 65%
The difference in the percent of households and number of residential units is greatest for households
below 50 percent AMI. For example, in the category of <30% of AMI, there are only 32 residential units in
McCall, representing approximately one percent of total housing units. Yet, 12 percent of the population
falls into that category; therefore approximately 12 times the number of units are needed, or an
additional 352 units. The table below demonstrates that many residents are forced to live in housing that
costs more than 30 percent of their incomes. The demand for home ownership shown below is increased
significantly when commuters are also considered. As stated previously, very few ownership opportunities
exist for households below 50 percent of AMI, and especially for households below 30 percent of AMI.
These income ranges generally rely on rental options.
TABLE 19: ADDITIONAL UNITS NEEDED BY MCCALL RESIDENTS
Additional Housing
Units Required
% of Households in
McCall
% of Existing
Housing Units in
McCall
Existing Units Additional Units
Needed
<30% AMI 12% 1% 32 352
30-50% AMI 16% 4% 127 381
50-80% AMI 18% 18% 576 0
80-100% AMI 10% 17% 540 (222)
>100% AMI 44% 60% 1,925 (513)
The locally-serving housing shortage is most deeply felt by those members of the community in lower-
wage occupations, such as those shown in the tables below. 18
18 The maximum home price is calculated based on HUD guidelines that a household should not spend more than
30 percent of household income on housing payments and utilities. The same utility costs were used for each
income range, based on the average home utility costs. Because the same utility costs were used for each income
range, utilities have a greater impact on lower-income households.
26 | MCCALL IN MOTION
TABLE 20: PERCENT OF HOMES AFFORDABLE BY PRIMARY INDUSTRIES
Accommodation &
Food Services
Arts,
Entertainment,
Rec
Education All Industries
Annual Income $22,139 $18,952 $37,904 $35,773
Max Home Price $42,190 $26,664 $118,996 $108,611
Total McCall Homes 58 49 366 300
Percent of McCall Homes 2% 2% 11% 9%
Total Impact Area Homes 12 3 151 129
Percent of Impact Area Homes 1% 0% 8% 7%
Total Homes 70 52 517 429
Percent of Total Homes 1% 1% 10% 9%
Percent of Individuals in Category 23% 6% 6%
TABLE 21: AFFORDABLE HOME PRICES
Average Wage Max Home Value Max Rent per
Month
Accommodation & Food Services $22,139 $42,191 $268
Arts & Entertainment $18,952 $26,665 $189
Education $37,905 $118,997 $663
Real Estate & Rental Leasing $23,899 $50,764 $312
Retail Trade $28,158 $71,513 $419
AMI - 100% $56,625 $210,197 $1,131
AMI - 80% $45,300 $155,024 $848
AMI - 50% $28,300 $72,205 $423
AMI - 30% $16,988 $17,096 $140
The maximum affordable rents shown in the table above are all more than the average rents researched as
part of this study and as shown previously in this report.
The following map shows that the higher-priced residential units surround the lake or are in the southwest
area of town. There appears to be slightly more affordability directly east and southeast of the lake. This
corresponds well with the location of essential services and public transit which are important criteria for
identifying future sites for locally-serving housing. The map is designed to show a large area of the City
and surrounding area, and is not intended to show a parcel-by-parcel analysis of specific properties.
Rather, the purpose is to see general areas of the City where there is more, or less, affordability.
McCall Area Housing Study | 27
FIGURE 13: MCCALL HOME AFFORDABILITY BY PERCENT OF AMI
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A closer look at this targeted area suggests the potential for more mixed-use residential in the downtown
area and 3rd Street in McCall.
Relative to locally-serving housing for specific industries, the following table summarizes housing
affordability in McCall for primary industry sectors. For example, 2 percent of homes for ownership in
McCall are affordable to individuals working in the Accommodation & Food Services sector, while 23
percent of individuals work in this sector.
McCall Area Housing Study | 29
Although the scale and size of the problem varies greatly, communities nationwide that have tourism-
based economies face similar economic challenges in housing when trying to provide local-housing
options for household families. While tourism contributes to the local economy, the demand from
tourists can cause rises in home prices as the second home market grows, but create competition in the
market that create challenges for local residents. In McCall, the proportion of rentals (especially short-
term) to permanent households has changed significantly in the last decade. As homes are purchased by
investors or second homeowners have concerted to short-term rentals for additional income, the market
tightens and becomes more expensive for local residents who struggle to find acceptable housing
options. This section will review national approaches to attempt to align these dueling market forces by
providing a mutually beneficial outcome while still correcting for market failures.
While McCall does already have significant impacts from the short-term rental market, the gap in housing
prices and wages is not so large that it is too late for the City to make corrections and prevent
“Aspenization.” Aspen’s home prices are so high that correcting for local-housing is a significant
challenge. An official coined “Aspenization” to describe “what happens when small towns choke on what
their charm has brought them” and this is a threat to any town with growing tourism interest.
This section will first review other mountain town and tourism economies and how they have approached
correcting for housing issues in their economies with various solutions and tools found nationwide.
National Case Studies
Ketchum, Idaho
The Blaine County Housing Authority reports that compared with other resort towns in the west,
Ketchum has the lowest affordable housing options – five units per 1,000 compared to 162 units in
Aspen. The City’s current policy focuses on developments with a floor-area ratio19 great than 1. These
developments are subject to 1) either provide a percentage of the property as deed-restricted or 2)
donate a percentage of value to an in-lieu fund. In past years, the City has been supplementing this fund
because there hasn’t been enough generated to support the housing authority. Funds haven’t always
been used towards affordable housing development and some council members are pushing for more
accountability. Also, some projects have had affordable housing requirements waived in return for being
completed within a certain time frame, such as a hotel in recent years. Area officials site difficulty with the
State of Idaho in options to fund housing, restricting housing tools like the real estate transfer tax and
inclusionary housing.
Working hand-in-hand with the Blaine County Housing Authority (BCHA), the community is also serviced
by ARCH Community Housing Trust. This Community Land Trust (CLT) is relatively new and is primarily
funded by federal grants. As of this year the Blaine County Housing Authority and ARCH have 99 homes in
their stewardship and have 126 active applications.
1919 Floor-area ratio is the ratio between total land square footage and the building’s square footage. It is a
measure of building density.
30 | MCCALL IN MOTION
Teton County (Jackson, Wyoming)
One of the more extreme cases in tourism housing, Teton County faces local housing shortages as
demand for tourism rises. Homes in this area are 1,400 percent of the median income, despite median
income being very high – around $300,000 per year. The average home sale is $2.14 million and condos
sell for over $800,000. Rentals are also very expensive and rents are rising to keep pace with market
demands. One of the largest complexes recently announced that rent would increase by 40 percent,
forcing many long-time residents out. The area reports that there is a deficit of 340 workforce units and
there is a need for 280 more per year to keep pace with employment needs. Local workers often
commute over an hour through mountain passes. Those staying in the City report couch surfing,
overcrowding and tent camping. Camping on public property as a housing option is not unheard of and it
is not generally stopped unless there are complaints.
The City’s Workforce Housing Plan has indicated a conventional approach to encouraging affordable
housing in private development, in addition to some employer-led initiatives. These measures include
allowing accessory dwelling units, updating zoning and parking requirements to allow for higher density,
providing density bonuses, and expedited approvals for price-restricted projects. The Town and County
also plan to continue “modeling best practices” by housing their own employees. Development will need
to show mitigation for employee generation. A dedicated sales tax revenue for housing was voted on in
2016 but did not pass. Residents have identified that the local lodging tax goes to promotion, but most
feel the area does not need marketing. The area does have about six percent of units, both rental and
owner units, as deed restricted; however, there are no goals to expand this tool in the community.
Aspen, CO
The most famous and extreme example of tourism pricing out local residents and workers, Aspen finds
that even doctors and lawyers are often priced out of local housing. The average home sale is for five
million dollar and even a double-wide trailer can sell for one million dollars.
The Aspen Pitken County Housing Authority is a long-standing program to provide affordable workforce
housing. Units under APCHA are available only to full-time employees in the county, with a mix of 1,346
rental and 1,619 sales units in the program. APCHA is funded through a one percent Real Estate Transfer
Tax (RETT) on all real estate sold within the City of Aspen (after the first $100,000) and a portion of a
sales tax. There are extensive and strict rules about who can participate and the kind of units they are
eligible for based on family size and income. Also, due to extremely high demand, units are allotted via a
lottery system.
There is a low appreciation cap on selling units to keep units affordable. This cap is at three percent or the
Consumer Price Index, whichever is less. These units are also strictly excluded from being used as a short-
term rental. These factors, combined with low availability in affordable housing overall, create a problem
of people unwilling to free up units even into retirement. With retirees occupying affordable units with
little financial incentive to sell, shortages continue for young workers and families. The low appreciation
cap also has limited the incentive for affordable units to remain well-maintained and updated.
Mackinac Island, Michigan
A quaint and popular destination in the Midwest, Mackinac Island is an island on Lake Huron that boasts a
car-free village full of Victorian structures and beautiful scenery. Maintaining local character on this island
is vital to maintaining the rich summer tourism industry. Home prices are often over one million dollars
and many residents live in either tiny cabins or cramped rentals. High summer rental rates forced many
families to move starting in the 90’s as land prices spiked.
McCall Area Housing Study | 31
A development was created on the island under the model of a Community Land Trust (CLT). A nonprofit
was formed that owns the land and the Michigan State Housing and Development Authority runs the
program. Lots are available through low-rent, 99-year leases and purchase is income qualified. Those
wanting a lot must also have lived on the island for five of the last 25 years, must sign a contract
certifying full-time residency (including no more than one month a year off the island, even for vacations),
and there is a limit on the profit from future home sales. Home sale profit is limited to 20 percent increase
in value. All of these qualifications are made possible through deed restrictions on the land lease and are
intended to prevent homes from being subleased or flipped for profit.
While many of the cities in this chapter have implemented CLTs and they are heavily promoted as one of
the best solutions to local housing options, they do not come without their own set of challenges. In
Mackinac Island, one of the primary challenges and the reason some lots are still available comes down to
mortgage qualification. Due to the nature of the land lease, mortgage lenders are requiring buyers to have
at least 20 to 25 percent for a down payment, which is often difficult for the income-qualified families
looking to build or own in this community. The nonprofit cannot currently provide financial assistance
without restructuring. The Mayor has been looking into down payment funding opportunities throughout
the State. The City is also considering rental options, such as an apartment building as a nonprofit
organization.
Vail, CO
Vail is another ski-resort oriented community with severe housing shortages. The County’s housing needs
assessment indicated that 4,853 affordable units were needed – a number that would increase to 9,593
by 2025. Since 2010, Vail has had nearly 90 percent of home sales to unoccupied home owners. In
response to these market shifts, significant solutions in housing have been initiated in recent years.
The Vail Housing Strategic Plan for 2027 has focused the Town on the primary goal of acquiring housing
unit deed-restrictions. This plan is proposed to be funded in the near term by existing housing program
funds and appropriations from the Town’s Capital Projects Funds, with future funding sources from a
dedicated tax source. This plan also is clear that a local housing authority should be established and used
as the special agent for the Town Council, giving the authority power to skip bureaucracy while
maintaining and granting financing and property powers as granted under the Colorado Revised Statutes.
Deed-restrictions will be acquired for existing and new homes. They give the ability to put occupancy
requirements on units without needing to own the property going forward.
The Town maintains a housing unit lottery with strict requirements for eligibility, including employment,
ownership of other properties, and occupancy. These properties have a resale cap of three percent annual
appreciation.
The Town also has an employee housing program for town employees. Top priority is given to critical
employees such and police and mechanics. The Town also provides two loan programs to employees for
rental and ownership. The Rental Advance program provides an interest free loan of $2,000 for rental
costs. The Employee Home Ownership Program provides an equity share mortgage that gives a
proportion of appreciation back to the Town. Resorts also provide employee housing.
The County has imposed a required rate of units that must be affordable within a development. The Local-
Resident Housing Guidelines give leeway to developers in waiving some zoning requirements to provide
32 | MCCALL IN MOTION
incentive for affordable unit growth. However, the County has refused to waive impact fees for any
project, even if the project is providing more affordable units than required.
Moab, UT
Moab is the primary gateway to several National and State Parks in southern Utah. Nearly 60 percent of
employment is driven by tourism-related industries. Although the affordability gap is not as pronounced
as in some other tourism- driven towns, there is still a gap of $84,037 between what an average family
can afford and the average selling price of a home in the area. The vacancy rate (which can indicate the
degree to which homes are being used as vacation homes or rentals) has been on the rise and is currently
at 27 percent.
Moab uses a variety of methods in assisting local-housing options. They use USDA502-direct loans that
allow households to contribute sweat equity towards construction in exchange for low rates, repayment
subsidies and home equity. 523-guaranteed loans are also used in the area. Deed restrictions have not
been widely implemented, but beginning in 2017 newly constructed homes will have deed-restrictions to
maintain long-term affordability. One development was recently approved as the first to include a 20
percent set-aside for affordable units, with 44 units deed-restricted for 40 years with income and
employment requirements. Most projects use income limits for rental units. The 2017 Moab Area
Affordable Housing Plan recommends developing a community land trust, increasing local funding,
expanding the use of deed restrictions, adopting an assured housing ordinance requiring large
developments to include affordable housing, supporting employer housing, increasing zoning densities,
enabling tiny home development, and lobbying the State Legislature to allow flexibility in using the
Transient Room Tax revenue.
Burlington, Vermont
The Champlain Housing Trust is the largest CLT in the country and one of the first, started in 1984. It
manages 2,200 apartments and 565 owner-occupied homes. The City also manages a housing loan fund.
A unique feature of Lake Champlain’s CLT comes from the shared equity program that offers down
payment assistance grants that are forever tied to the property. They are repaid by the owner at the time
of sale and then given to the next buyer of the home. This shared equity program was invented by the
Champlain Housing Trust and won the UN World Habitat Award. Two-thirds of sellers – many who began
as low-income renters - go on to buy in the private market and their rate of foreclosure is ten times less
than market norms. Like most CLTs, homes cannot be subleased and the homes carry deed restrictions.
The City supports the housing trust through federal sources, a 1 cent increase on the property tax rate,
housing replacement ordinances, inclusionary zoning, condo conversion protections and tenant
protections. The City has also worked hard to leverage the program to target a neighborhood for private
investment and the program’s model has been embraced by local banks and lenders.
San Juan Islands, WA
San Juan County is reachable only by air, boat, or ferry and has seen a surge in tourism and rental
homebuyers while simultaneously seeing a decline in middle-class fishing, shipping and agriculture jobs
that sustained the local working economy. The median home price was $500,000 last year and shipping
costs to the islands make building difficult. The Seattle Times quoted a local resident saying that you
“either own three homes or you have three jobs” to live on the islands.
The area also has a couple of active community land trusts that have created buzz by “recycling” housing
units, including relocating old houses from Canada via barge. Not only was this cost effective compared
McCall Area Housing Study | 33
to building, but it suited the demographic market for the area. Local residents and donors have an interest
in recycling and in preserving older homes with character. The buzz has contributed to increased
fundraising appeal and activity from donors. These homes will be available to purchase in the $160,000
to $210,000 range.
Homes and apartments are managed using a variety of affordability tools within the CLTs. Many include
the normal 99-year land lease. In one development, the buildings and land are owned in common by the
residents and kept affordable by using a Permanent Affordability Covenant, a type of deed restriction.
Both types of properties are subject to a resale formula tied to the Area Median Income. Grants and
donations go toward construction and stay with the home in perpetuity, rather than as a windfall to the
first owner. Some grants require sweat equity. One of the local CLTs also manages rental apartments and
office spaces.
Whitefish, Montana
Business leaders in Whitefish met last year to discuss their inability to hire and keep enough employees
and determined that housing was their biggest issue in staffing basic jobs. About 69 percent of jobs are in
accommodation, entertainment, recreation, food, retail and arts and there is a shortage of workers
available for these sectors that can afford to live in the area. There is more affordable housing in nearby
towns, but there are also employment opportunities there providing less incentive to commute.
In the past year, Whitefish conducted a housing study. This study included a resident survey that found
the greatest demand is in single-family detached units. 88 percent of respondents preferred these units,
showing that plans for higher density may not meet the market demand and keep families interested in
the area. Residents also noted that many units were in poor condition.
This study also pointed out that the Town’s voluntary inclusionary program was not working and
developers were not participating in the density bonus, making the housing needs fall further behind each
year. The new housing plan is looking to implement a wider and more aggressive set of tools to
encourage workforce housing to meet the 1,000-unit shortage. When this plan was implemented 20
years ago, the Town was clear that it wasn’t interested in charity, but rather “correcting dislocations by
unusual economics.” However, any program going forward will need to be more aggressive to maintain an
employment base. While the plan hasn’t been completed, the Town is looking at zoning codes, waiving
fees, requiring mandatory workforce employee housing and partnering with nonprofits.
Park City, Utah
The Park City area has been very careful to maintain the desirability of the area by limiting building heights
and density, but this in turn has led to trends towards sprawl, congestion in the County and increased
housing prices. The City’s housing plan recognizes this paradox between maintaining character and
keeping housing costs in check, noting that it was time to think beyond choosing low heights and density
every time. While prices were still attainable to middle-class families before the Olympics, since the
Olympics the City is increasingly concerned that the middle-class will be lost entirely.
The City has been very successful at fostering development of low-cost rental units with the help of
Federal Housing Tax Credits. The private market is, of course, providing homes for the top end of the
housing spectrum. The middle is where recent attention has now been focused. These households with
buying power between $260,000 to $525,000 are unable to buy a home in the City unless they are willing
to buy an attached condominium or to live outside the City and commute. Consultants for the most
recent housing plan strongly recommended the City expand use of a land trust to purchase, hold, and
lease properties in several neighborhoods in the City while redeveloping these properties to appeal to
families that might otherwise look at newer homes in the County. Consultants for this plan noted this
34 | MCCALL IN MOTION
would need to be aggressive and a fine line to walk to avoid the pitfalls of Vail (too dense) and Aspen (still
not affordable). This plan requires $1 billion in forward commitments and the land trust to acquire about
$300 million in land over 40 to 50 years. Zoning in these projects will also need to double in density to 7
to 9 units per acre.
Solutions
As seen in the various case studies above, different cities have a variety of approaches to trying to address
the supply gap in local community housing, but almost all use a variety of tools simultaneously. The
numerous types of tools available to correct market prices for local families are outlined below. These
tools range from simple to complicated, passively to actively managed, and ones that influence private
developments to ones were the local government is more involved in properties. Most of these tools can
be used in combination and concert with each other, but they might be able to better serve different
market segments depending on the types of products they might incentivize in the area.
McCall could certainly use a number of these tools, especially in encouraging affordable local housing
options downtown with higher density to create vibrancy. In most communities, tourism-driven or not,
density is often an enormous factor in improving the options for low- and moderate-income households.
Density is also more easily attainable by incentivizing private development. This is definitely an angle for
the City to approach in keeping downtown vibrant. The community is also interested in maintaining
housing affordable for local residents of all income and demographic levels. For this goal, single-family
residents must also be a focus and requires more active involvement on a per-unit basis. Single-family
units are not only in higher demand, but making sure a year-round population lives in units throughout
the City is key to maintaining the community character of McCall. Appendix B shows the impacts that
smaller lot sizes can have on affordability in a City that originally had only large, single-family lots.
The most widely used and most effective tool in promoting affordable single-family units in tourism
communities is an effective deed-restriction program, preferably in the form of an active and engaged
Community Land Trust (CLT). While a CLT is not necessary for deed-restrictions, it does offer greater
control over unit investments. Discussions with the City and stakeholders indicate that a Community
Land Trust is in place. The CLT needs to take on a role of adding properties available to permanent, year-
round residents. Tools can be used within the CLT to assist home-buyers with down payments and
property rehabilitation, which are also issues discussed in community input meetings.
Another important factor for the City to prioritize is infrastructure support. Incentives could be provided
for infrastructure support or for appropriate regulations for locally-serving housing.
Tools and Mechanisms
Fee Waivers
McCall can reduce the cost of development, thus reducing the rental or purchase price of a unit, by
waiving fees for developments targeting local housing with deed restrictions. Fees that can be waived
include plan reviews, impact fees,20 water connections, and building permits. These issues can also
contribute to infrastructure cost reduction. Sewer connections are now a service from the Payette Lakes
Water and Sewer District; therefore, a reduction of these fees could not be offered by the City.
20 While McCall does not currently charge impact fees to new development, these fees could be waived if the City
should choose to enact impact fees in the future.
McCall Area Housing Study | 35
Permit Streamlining
This process would include prioritizing any project in the permit and review process if it meets local
housing and affordability goals. Fast tracking and administrative approvals would, however, still be
subject to legal requirements.
Inclusionary Zoning/Assured Housing
This is an ordinance that requires new construction to include affordable units or pay a fee equal to the
cost of those units. This is only a useful tool if new developments are being created in growth-oriented
communities and is generally applicable to dense housing developments, especially multi-family or
attached units. While this is a common tool in other areas, the City has noted that this is not an option
because inclusionary zoning is currently illegal in Idaho.21
Density Bonus
A density bonus incentive can take many forms:
1. Mixed income development – This can be a single-family or multi-family development that mixes
unit sizes and qualities with good design practices to make units desirable at all income levels.
This method prevents income segregation. A density bonus can be applied to these
developments.
2. Allowing smaller units to be constructed, allowing taller buildings, relaxing set-back requirements,
or other zoning allowances that can allow a developer to get a higher return on investment in
return for a number of affordable units to be included.
Voluntary density bonuses have reportedly not proven to be largely effective in many tourism
communities with rapidly rising property values. However, it is a tool that creates little harm in case a
developer is interested.
Conditional Use Permits
Where high density or affordable housing is meeting pushback from the neighborhood, a conditional use
permit can allow development to integrate into an area more smoothly. Requirements can include things
like design requirements, lay out, traffic flow, amenities, management requirements and services.
Infrastructure Support
The City can reduce the cost of developing affordable housing and attract developers by constructing
infrastructure in targeted locations. This reduces the cost of development, as well as reducing the
construction time by making the property shovel-ready. Discussions with developers at the community
involvement meetings found that infrastructure costs are perceived by them as a major hindrance to
development within the City. The cost of water and sewer hookups is a major factor in limiting affordable
housing techniques. The City could consider buying water and sewer hookups or subsidizing the
connection fees.
Rent Subsidies
These programs effectively pay down rental rates such that the remaining cost burden on the family is an
affordable 30 percent of its income. They come in two forms: tenant-based, where the tenant is free to
21 The issue of inclusionary zoning was tried in 4th District Court and found to be unconstitutional under Idaho law.
36 | MCCALL IN MOTION
move and take the assistance to each new location, and project-based where the assistance is attached to
a project for periods of ten - twenty years. Project-based subsidies are less administratively burdensome
and provide construction incentive to a developer, as they steady income streams and increase debt-
carrying capacity. Tenant-based is flexible and can be applied to the current housing supply without
necessarily building new affordable units. Federal rent vouchers are often very limited in availability. While
the City could offer these from City funding, this would be a drain on housing funding rather than an
investment.
Project-Based Grants
This straightforward and widely- applicable tool would function as a grant from the City to a developer in
return for developing affordable housing units. Conditions of the grant may require a certain percentage
of the units to be rented or sold within specified price ranges. Or grants can be used towards deed-
restricted or land trust projects as an initial investment in permanently affordable units.
Tenant Grants
Although there is no payback to the City, the City can consider the simple approach of basic grants for
use in down payment or rental assistance.
Deferred Payment Loans
These loans, also known as deferred payment second mortgage loan or “soft seconds,” defer all payments
of principal and interest until resale of the property or conversion. Sometimes these loans are even
forgiven over a period of years. They are generally used in three ways:
1. Down payment assistance for low-income homebuyers in tandem with conventional financing;
2. Major subsidies through gap financing to rental project developers; or
3. Rehabilitation loans.
Interest Subsidies
Also known as interest rate buy-downs, these are effectively prepaid interest at the origination of the
loan. The effect of these buy-downs is the same as a zero percent deferred payment loan.
Compensating Balances
A bank may be willing to reduce an interest rate for a partnership development if the City then deposits in
the bank for a certain term. At the end of the term, the City regains its deposit in full, but the bank retains
any interest earned to offset the original lower interest rate. This is often not an efficient use of funds due
to inflation, but is a possible option.
Tax-Exempt Bonds
The City can leverage its tax-exempt bonding power to support financing of an affordable housing project.
This can also reduce the housing costs in the development and increase affordability.
Revolving Loan Fund/Housing Trust Fund
A revolving loan or housing fund can employ many of the tools mentioned in this chapter, such as down
payment assistance, interest reduction, rehabilitation loans and deferred payment loans. A common
usage of this mechanism is the zero percent deferred payment loan. The loan is due in full when the title
changes and then “revolved” back into the fund to be used for another household. Like rent subsidies,
this can be useful to the City to aid in affordable housing with the current housing stock. These funds can
also be used to enable public-private partnerships. These efforts might include predevelopment costs or
McCall Area Housing Study | 37
design and construction costs. Some tourism communities have shifted lodging taxes or sales taxes to
these types of funds, but many other sources can be used and supplemented by grants and donations.
Housing Rehabilitation
McCall has several units that are older or in disrepair. In public meetings, it was noted that it was difficult
to find appealing units for middle-class families. Options to address these issues and improve housing
options throughout the City include grants, property tax abatements, and subsidized loans.
Land Banking
Land banking is simultaneously an investment for the City and a way to control housing growth. The City
purchases and holds land that is either vacant, under-developed, or in disrepair and converts them into
usable space, ensuring they go towards local housing projects. This could be used in conjunction with a
Community Land Trust. In some cases, this can be in anticipation of rising land prices. The return on
investment can then help fund or subsidize development of affordable housing units.
Community Land Trust (CLT)
In communities where home prices are rapidly out-pacing local working incomes, these are one of the
most widely recommended systems for providing affordable housing across all income groups for local,
permanent residents. A CLT is managed by a nonprofit and they separate the title to the land from the
title to the built structures, allowing the CLT to maintain housing units on long-term land leases. This
allows full control and deed-restrictions on the property ownership and resale price. The structure of CLTs
encourages long-term residency, provides the benefits of single-family properties at an attainable price,
gives equity gains to owners, all while maintaining price and control. A major benefit of the CLT structure
is that it also allows the CLT to intercede in cases of foreclosure. Homeowners in a land trust are ten times
less likely to default on their homes. If the property does enter foreclosure, the CLT still maintains control
over the property compared to simple deed-restricted properties where residency requirements would be
stripped from the property. The resident only needs to secure a mortgage for the purchase price of the
structure. It is critical that the managing entity work with local lenders to ensure the CLT covenants are
acceptable for obtaining loans or to assist buyers in securing mortgages. CLTs are eligible for USDA Rural
Development Site Acquisition Loans, RCAC Site Acquisition Loans, and often involve land and money
donations.
Deed Restrictions
Deed restrictions place restrictions on the property for how an owner may use or resell the property.
These restrictions can be similar to those found in Community Land Trusts in promoting permanent
affordability, like resale price controls and income restrictions. However, the life of deed-restrictions is not
as long term as CLTs and does not provide the same controls over the property. This can be especially
important if the property comes under foreclosure. Deed restrictions can be used on existing properties,
rather than just new construction and can also be used for both rental and owner units. In
homeownerships, it could include resale price controls, “silent” second mortgage or lien, right of first
refusal, or buyer income restrictions for resale. Rental examples include tenant income restrictions and
partnership agreements, land use agreements, and restrictions imposed by funding sources.
Limited Equity Housing Cooperatives (LECs)
LECs are stand-alone corporations that are owned collectively by residents. They are started with an initial
subsidy, but obtain financed through a blanket mortgage and then restrictions are managed through a
shareholder agreement that specifies resale restrictions and income requirements. LECs are sponsored by
the City to provide initial and ongoing support.
38 | MCCALL IN MOTION
Tiny Homes
The tiny house movement is as much a social movement towards minimalism as it is a practical solution
to affordability. These homes are less than 1,000 square feet, though a true “tiny” house is usually less
than 400 square feet. While these homes are cost effective in their building cost alone, they also save
residents money in most other housing costs that multiply with home size. These properties also have the
advantage of needing less land per unit and multiple units can be provided for the same cost and land
space as one traditional unit, while maintaining the autonomy appeal of a single-family home.
While the perception is that this movement is driven by Millennials, the American Tiny House Association
reports that most tiny home owners are in their 40s and 50s. These homes are a good match for empty
nesters looking to simplify, retire early and live in more scenic areas, like McCall. They are not great
matches for working families. Young couples looking to start families in the near future may not treat a
tiny home as a permanent housing solution. Tiny houses can have a helpful role in freeing up units in
McCall for local families and providing permanent housing for older residents.
The City could directly support a tiny home development through funding and incentives, or simply pave
the way for private development through favorable zoning and utility structures that make
accommodations for tiny home projects. Tiny house options likely in McCall are accessory dwelling units
(ADUs) on foundations, tiny lot subdivisions, or long-term leases of “pads” (similar to trailer parks), all of
which would require individual water/sewer hookups. Units on wheels would likely still require individual
water/sewer hookups and would be more for seasonal workers. The uses (recreational vs. local housing)
would need to be controlled by deed restrictions/permanent affordability covenants.
Employer Supported Model
Some communities with heavy tourism put pressure on employers to provide housing assistance to
employees. This could be as far as providing actual housing units, or encouraging wage and benefit
incentives to subsidize housing costs. For employers, it can be an effective recruitment and retention
tool. Many of the cities analyzed in the case studies provide housing for City employees at a subsidized
cost.
Accessory Dwelling Units (ADUs)
Accessory units are additional units to a single-family home, such as a basement apartment or a guest
house, that are rented to a second household. McCall currently allows accessory units and these are a
great way to increase housing stock within an existing built community. These improve rental options and
availability with little extra cost to the City and extra income for residents, effectively improving
affordability for existing homeowners. In order to effectively help local-housing, deed restrictions with
occupancy requirements could be implemented; however, these are difficult to enforce for these units.
McCall Area Housing Study | 39
To provide more local housing options, decisions of both city planners and developers will need to be
coordinated. Current housing supply results in a lack of options for median-income earners, and,
consequently has led to a transitory workforce.
Construction costs in McCall are notably high, and are mainly due to labor shortages. Costs for single-
family home construction in Boise are roughly 20 to 25 percent lower than in McCall, as labor is more
readily available. If developers cannot bridge the gap in labor rates with higher home prices in a
community, they will look to build elsewhere. Currently, lower-end homes in McCall, per information
provided by local construction companies, can be built from $170 to nearly $190 per square foot. Homes
with more custom-designed interiors have costs above $200 a square foot.
For local housing to be feasible (i.e., built to price levels that can be attained by median-income earners),
construction will need to be at the lower end of the possible spectrum, or, at $170 per square foot.
Considering that the likely price threshold is near $200,000 (based on a 20 percent down payment, and
currently achievable mortgage rates, property taxes, HOA fees, insurance, etc.), home size would be near
1,200 square feet ($200,000/$170). Both one and two-bedroom designs would be supportable at this
size.
The following photographs show potential housing designs that could be financially feasible, and, allow
for smaller-sized units in a moderate to high-density arrangement. Similar type units would be of two-
story design, with ground floors of larger size than second stories. Roughly 300 square feet of front
common area/yard space would be necessary per unit, which would include driveways and sidewalks.
With consideration for parking (not included in the 1,200 square feet), density would be supportable at
roughly 30 to 40 units per acre.
The matrix below shows the likely size and layout characteristics of affordable housing that could be
achieved in McCall. To attract developers to a project that would result in housing values near $200,000,
the City may need to provide for density allowances of 30 to 40 units per acre in high-density residential
areas and commercial areas. Additionally, requirements for parking should be kept to one space per unit,
40 | MCCALL IN MOTION
as developers will struggle to achieve necessary profits if additional parking is mandated. Furthermore,
requirements for common area amenities should be kept to a minimum.
TABLE 22: POTENTIAL HOUSING DEVELOPMENT
Housing Type – Details What is Required of Developer What is Required of City
Residential
Construction
1,200-square feet
average, one and two-
bedroom townhouse
designs, two-story, one
parking space per unit,
roughly 300+square feet
of common area/front
yard space per unit.
Density of 30 to 40 units
per acre
Lower end units that have
secondary locations (lower land
prices). Homes would likely be
of two-story design to allow for
density and one garage space
per unit
Density allowances of 30 to 40
units per acre. Allowance of
one parking space per unit.
Limited common area amenity
requirements. 40 units per acre
is allowed in the Community
Commercial Zone.
Cost –
Residential
Construction
$170 per square foot,
including all land costs
and a profit allowance
Potential of taking a reduced
profit allowance (in order to
achieve the appropriate
valuation level)
Costs can be partially offset by
expedited approval and
entitlement periods. Greater
returns are achieved when
holding periods are reduced.
Developers may need to accept reduced profit allowances on a project such as described above. They can
achieve higher profits currently on more expensive offerings. However, if entitlement and approval
periods are expedited, and density allowances, parking requirements, and common area needs are
adjusted as described, the returns may be sufficient to entice development.
Presently, profit margins on single-family homes at the upper-income levels is significant, ranging from 30
to 40 percent in some cases. This is notably greater than the profit achievable with local housing.
Consequently, developers will continue to pursue high-end single-family homes over alternative options,
as the returns are superior. Additionally, the following considerations are made for why developers may
not choose affordable housing in the present economic climate:
x Market conditions are notably strong for high-end housing in the current economy.
x Most buyers of upper-end single-family homes are doing so with cash purchases, removing the
risk of acquiring financing.
x Homes at the high-end level are built build-to-suit, with the end user secured at the beginning of
the project. With affordable housing, the developer does not see cash until the project is
completed and the absorption period commences.
x Affordable housing may have design requirements and guidelines that are met with inspections
that could delay or hinder the progress of a development.22
22 This may not be an issue in McCall, but many communities in states such as CA require interior buildouts of
affordable units to be similar to requirements of market-rate units. Some communities even require additional
inspections for affordable units to ensure that corners are not being cut for items such as quality of insulation,
plumbing fixtures, etc.
McCall Area Housing Study | 41
Again, the current economic climate is such that developers have superior returns available from market-
rate units, and the reality may be that market conditions need to shift to allow for more attention to
other areas of the residential sector.
42 | MCCALL IN MOTION
The ultimate goal of this report is to identify specific things the City and community partners can begin
doing to provide additional affordable housing options for existing and future residents. This chapter
includes funding and implementation tools that could be considered, as well implementation strategies
and next steps for the most viable implementation tools.
Funding and Implementation Tools
A variety of funding and implementation tools are listed in the following table. Each tool includes a
description of the tool, pros and cons, and whether the tool could be achievable in McCall. McCall will
need to use a combination of several funding strategies in order to achieve its housing goals. Without a
dedicated funding source, the City and community will not have sufficient funds to implement many of
the housing tools. The applicability of various strategies may also change over time, as economic
conditions change. For example, increasing the local option tax (LOT) would be a good option for McCall,
which could increase its current revenues of $1.1 million annually, just by increasing the one percent
charged on all non-grocery retail sales to two percent.
TABLE 23: FUNDING AND IMPLEMENTATION TOOLS
Tool What it Does Pros and Cons Achievable in
McCall?
Urban Renewal District
(URD)
The mission of the
renewal district
could include
housing, which
would need to be
within the bounds
of the district.
Requires the City to
identify key land
parcels for future
land banking. Key
land parcels that
would be ideal for
affordable housing
(near employment,
near transit) are
noted to be within
the proposed
boundaries of a
new district.
The McCall
Redevelopment Agency
has an existing district,
but is looking to pay off
the bonds before 2021
and implement a new
district.
Likely – creation of a
new district is a
primary
recommendation.
Land Banking Setting aside funds
for purchasing of
Allows developers to
start projects without
A strong possibility for
McCall, dependent
McCall Area Housing Study | 43
Tool What it Does Pros and Cons Achievable in
McCall?
land or holding
existing city-owned
lands for future
housing
development.
Would work well
with the Transfer of
Development
Rights (TDR)
considerations if
the City owns other
properties with
developmental
rights.
significant upfront costs
if land is provided as part
of a joint-development
agreement or as a partial
donation in order to
secure deed-restricted
housing for locals.
upon available land
and resources for
acquiring property.
Has worked well for
other resort
communities.
Creative Micro and Tiny
Housing Development
Modular housing in
the form of micro
and tiny homes has
become more
affordable, and
more sophisticated
in its style and
design. Some areas
in the
Intermountain
West have had
success by allowing
zoning changes that
permit modular
housing, but with
specific design
standards. A
developer can
maximize density
on small lots with
multiple units, and
the end product is
often a desirable,
lower-income
community.
Benefits include more
affordable housing
options. Potential
detriments include public
perception to
unattractive modular
housing, although
numerous housing
communities have shown
that end products can be
desirable.
Temporary units are
much more affordable to
build but are generally
suitable only for disaster-
relief situations,
classrooms, mobile
showrooms and
construction site/sales
offices. They have much
lower Code requirements
but are far more difficult
to relocate or convert to
permanent housing.
Many states consider
them “personal
property” because they
are not affixed to any
real estate and they
Strong possibility that
will allow affordable
units at profit levels
for developers that
will be enticing. Could
be used as temporary
housing on vacant
properties.
Tiny house options
likely in McCall are
Accessory Dwelling
Units (ADUs) on
foundations, tiny lot
subdivisions, or long-
term leases of “pads”
(similar to trailer
parks), all of which
would require
individual water/sewer
hookups. Units on
wheels would likely
still require individual
water/sewer hookups
and would be more for
seasonal workers.
The uses (recreational
vs. local housing)
would need to be
controlled by deed
44 | MCCALL IN MOTION
Tool What it Does Pros and Cons Achievable in
McCall?
therefore depreciate in
value over time.
restrictions/
permanent
affordability
covenants.
Inclusionary Housing
Ordinance
Requires properties
to have a certain
amount of below
market rate
housing in order to
obtain approvals.
Deed restrictions
keep the properties
at below market
rates in perpetuity.
Typically allows for 20
percent of units to be
below market rate
(BMR). Creates some
concern with developers
about influence of BMR
units on standard units.
Is often a condition of
receiving increased
density or some other
incentive that offsets the
loss revenue from BMR
units.
Yes - current code
allows for plenty of
density; in fact, more
than the market will
allow;
No – Inclusionary
Zoning was
determined
unconstitutional under
Idaho law by the 4th
District Court;
therefore, this is only
feasible through
negotiations with the
developer for other
incentives, including
increased density
Expedite Approvals for
Price-Restricted Projects
Increases
developer internal
rates of return
(IRR). Makes
McCall more
competitive with
other cities in
attracting
development.
Requires the City to
have a streamlined
process with
existing design
standards.
Encourages development
and results in greater
returns. Requires less
oversight and planning
involvement.
Yes - City currently has
a 45-day timeframe
and is fairly efficient; if
a developer does
deed-restricted
housing, the developer
gets additional
density. The City
currently allows for
40-60 units per acre,
but the City has found
that developers are
not interested in much
more than 24 units per
acre.
Local Option Tax (LOT) -
Tourism
A tax charged to
occupants of hotel
and motel rooms,
as well as private
campgrounds and
vacation home
rentals - if less than
30 days. The tax
Competitive with rates
charged in other states.
The proceeds for the
existing LOT can only be
used for City
infrastructure, cultural
and recreational facilities
and activities, parks,
A strong possibility.
The City needs to
reapprove this tax in
2018. Include housing
in the new ordinance.
McCall Area Housing Study | 45
Tool What it Does Pros and Cons Achievable in
McCall?
rate is 3%. Includes
a tax for all short-
term rentals,
including Airbnb (as
of December 1,
2016).
Resort cities have a
choice in what’s
taxed and can
include everything
that’s subject to
the state sales tax.
McCall has enacted
this tax to 3
percent. It is
designed to lessen
the undue burden
placed on the
taxpayers of resort
cities. The existing
tax can be used for
the following
purposes: City
infrastructure;
cultural and
recreational
facilities and
activities; parks;
animal shelters;
and marketing. Or,
the City can target
infrastructure costs
from an area and
build the
infrastructure for
housing projects
animal shelters, and
market tourism and
travel to Idaho, and does
not currently allow for
any housing funding.
Revenues from LOT can
be used for any purposes
approved by the public
when the LOT is
approved (Idaho Statute
50-1047). McCall has this
tax up for vote again in
2018; if not passed, it will
expire. At the time of
the renewal vote, McCall
could modify uses to
include local-serving
housing.
Local Option Tax (LOT) –
Streets
The LOT for streets
is charged one
percent on all non-
grocery retail sales.
In addition, three
percent is charged
on all lodging, the
McCall currently receives
about $1.1 million
annually from the one
percent portion of the
tax, and another
$487,000 from the three
percent charged on
lodging.
Sun Valley has enacted
a tax on all non-
grocery items to two
percent. If McCall
were to increase the
tax to two percent, it
would receive an
46 | MCCALL IN MOTION
Tool What it Does Pros and Cons Achievable in
McCall?
same as the LOT
Tourism tax.
additional $1.1 million
annually.
Increase Zoning Densities Increase zoning
densities in areas
which have more
affordable land
prices. Allow for
smaller homes on
smaller lots. If
connections to
transportation are
available, parking
requirements can
be reduced. The
result is lower
overall values than
larger homes with
full amenities.
While it does encourage
affordable housing
options, increased
density raises questions
regarding traffic, calls to
service, and pressure on
schools. This model has
been successful in
numerous resort towns,
as well as moderate and
large-sized cities
throughout the west.
Spot zoning should be
avoided.
Yes - has already been
done with limited
positive impacts; could
potentially build more
certainty into the
rezone process as
developers will know
upfront the density
that can be built on
various properties in
the City.
Accessory Units Allowing for ease of
construction of
accessory units or
conversion of
existing space into
rental units.
Has been allowed in
McCall since 2006. If
building is less than 1,500
sf, only a building permit
is necessary. Has not
many spurred long-term
rentals.
Likely, but results have
not been significant.
May need to explore
deed restrictions for
ADU’s to make this
tool effective in
achieving long-term
rentals.
Federal Housing Tax
Credits
Developers utilize
federal housing tax
credits for low
income housing
units. The credits
are usually
obtained in
conjunction with a
housing non-profit.
Housing prices are
set at a percentage
of the median
value, as well as
what is affordable
based on a
percentage of
wages that are
Can be a time-consuming
process, with federal
preferences for
properties with near
access to transportation,
employment centers, and
educational
opportunities. Much
easier to secure this
funding in large cities,
but has been done in
numerous resort areas,
like McCall and Donnelly.
Yes. McCall would be
competitive in the
region given the need.
Some support from
other resort
communities.
Preference should be
given to mixed-income
developments.
McCall Area Housing Study | 47
Tool What it Does Pros and Cons Achievable in
McCall?
typically 60 to 80
percent of median
incomes.
Community Land Trust
(CLT)
A trust is
established that
typically results in
efforts of
preservation or
restoration of open
space. It can be
used for dedicated
housing, and has
been done in
California and
Oregon (as well as
other states). It has
been done for
specific workforce
housing, student
housing, and below
market housing.
Requires active
management of the
trust, with typically the
developer entering into a
land lease agreement for
the property (often at 99
years). The trust requires
deed restrictions to the
use of the site, and the
affordability of the units.
Resells of the property
are guided by the trust.
Does require significant
funding to get started,
some of which can come
from federal grants.
Most federal grants
require access to mass-
transit options, and proof
of employment at certain
available wages.
Less likely. A long-
term possible option,
but requires dedicated
effort for an extended
period to get the trust
going, and to operate
it efficiently. McCall
currently has two
forms of CLTs - a
housing and a land
trust.
Business Housing Co-Op Has been done in
some other resort
markets.
Businesses group
together to provide
housing for their
employees.
Works when there are
limited housing options
in the immediate area for
employees (i.e., national
parks), and employers
can save on wages by
providing housing. May
not be feasible in McCall
given the proximity to
other towns and cities.
Possible, but is
generally more
feasible with larger
employers; however,
small and mid-size
employers could join
together.
City Employee Housing
Program
Similar to the
business housing
co-op, this is a City
program which
provides housing
for City employees.
It can be an effective
recruitment and retention
tool.
Possible, and has been
done in other resort
and mountain-town
markets.
Co-Housing Co-housing is
essentially a
condominium
project with private
areas and shared
Co-housing units are
generally smaller and can
be economical
advantageous due to
shared resources with
There are several co-
housing developments
in the United States,
though currently none
in Idaho. Because the
48 | MCCALL IN MOTION
Tool What it Does Pros and Cons Achievable in
McCall?
common areas, and
with CC&Rs that
address the use
and maintenance
of the common
areas (gardens,
dining rooms, etc.)
other community
members, including
facilities and services.
Disadvantages include a
lack of complete control
over one’s property, and
the planning process can
take more time and
ultimately cost more.
Furthermore, the
planning and executing of
a co-housing
development is generally
executed by a group
planning to occupy the
development, as they will
create the CC&Rs.
entire concept behind
co-housing
developments is
member-driven
planning and
operating of the
development, City-
sponsored co-housing
is not likely to be
viable in McCall. Co-
housing could be
considered on a case-
by-case basis if
presented to the City
but a co-housing
group.
Transferable
Development Rights
(TDR)
Ability to transfer
development rights
to other properties
within a city.
Allows for
maintaining open
space where
desired, while
encouraging
development in
other places.
Available in Idaho,
with the creation of
"sending" and
"receiving" zones.
Allows for density to be
traded to other areas.
The fast facilitation of
trading of development
rights has helped several
cities jumpstart certain
construction in select
areas. Requires the
identification of sending
and receiving areas. Is
dependent on the
initiative of the property-
owner or developer.
Possible, and has been
done in other resort
and mountain-town
markets.
Green Initiatives Tax credits, utility
credits, or
reductions in
impact fees,
connection fees,
etc., are made for
development that
encourages green
construction. This
can include
sourcing local
materials, using
local workers,
A niche market that does
not appeal to a number
of developers.
Furthermore, costs of
green construction can
be high for certain
improvements, thereby
making affordable
housing somewhat
questionable.
Possible, but impact is
somewhat limited in
present market.
However, tax and
utility credits can
provide some appeal.
McCall Area Housing Study | 49
Tool What it Does Pros and Cons Achievable in
McCall?
recycling rain
water, solar power
options, recycled
building materials,
etc. Grants are
available from a
federal level for
properties which
install electric car
charging stations,
or, conform to a
variety of green
standards.
Implementation Strategies and Next Steps
The following implementation strategies and associated next steps come from the Funding and
Implementation Tools and are the tools that were determined to be the most viable for McCall.
50 | MCCALL IN MOTION
Land Banking
Purchase, zone or identify
parcels in key areas near
transit and essential
services that are ripe for
redevelopment, either
through visually decaying
appearances or through
lower-than-average
improvement values per
acre in the area as shown
in this report. An urban
renewal district can be an
effective tool in
redevelopment.
1. Identify funding
source for City to
acquire land.
2. City should
identify specific
sites which will be
appropriate for
development of
local-serving
housing (i.e.,
proximity to
transit, type of
neighboring uses,
visually decaying
appearances or
lower-than-
average
improvement
values per acre,
etc.). The City’s
Comprehensive
Plan has identified
specific sites
which should be the priority for future land acquisition, subject to land owner interest and market
conditions (see the map above). Sites may include those which have transferable developmental
rights that could eventually be used for local housing.
This study identifies general neighborhoods by focusing on encouraging development near public
transit and essential services, and in areas with lower improvement values.
a. Encourage new housing development near public transit routes.
FIGURE 15: POTENTIAL LOCAL HOUSING LOCATIONS (SOURCE: MCCALL COMPREHENSIVE PLAN)
McCall Area Housing Study | 51
Based on Mountain Community Transit Routes, the most likely sites for the development of affordable
housing are east and immediately south of the lake. Other maps will show that there is currently more
affordability in these areas than to the west of the lake.
FIGURE 16: PUBLIC TRANSIT
In addition, there are several properties with redevelopment potential and that are within walking
distance of public transit. The City should encourage the development of local housing near these public
transit routes and pathways through changes in zoning and the allowed mix of housing types.
b. Identify sites for locally-serving housing near essential services.
Essential services such as grocery stores, hospital, and daycares are largely located near the
downtown area and are also accessible to transit. The area shown in the blue circle in Figures
17 is an ideal location for future local housing development.
FIGURE 17: MCCALL CONVENIENCE SERVICES
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McCall Area Housing Study | 53
c. Identify specific sites within the targeted area with lower-than-average improvement
values per acre.
Potential redevelopment properties generally have lower improvement values per acre. The
lowest improvement values per acre are generally located on the outskirts of town. However,
there are some potential properties near transit and the downtown area. The map below
shows the targeted area, based on better connections to public transit and accessibility to
essential services.
Focusing in on the targeted area, there are several neighborhoods with lower-than-average
improvement values per acre. This suggests that there may be redevelopment potential for
these properties. Higher-density uses could be appropriate at these sites, thereby reducing
costs through lower land costs on a per unit basis.
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FIGURE 18: MCCALL IMPROVEMENT VALUES PER ACRE
McCall Area Housing Study | 55
d. Ensure that redevelopment does not displace existing affordable housing with other uses.
The targeted area appears to have a fair amount of affordability at 80 percent of AMI and a
smaller amount of affordability at 30 to 50 percent of AMI.
FIGURE 19: HOME AFFORDABILITY BY PERCENT OF AMI
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e. Allow for a mix of uses in the targeted area, so that higher-density residential units can be
integrated with commercial uses.
1. Ideal sites for new local housing would be near existing commercial areas, densifying
residential development to reduce land costs and thereby increase affordability.
2. Perform highest and best use studies on the specific sites to understand how much the City
should pay for the land.
3. Meet with prospective developers to gauge interest in the proposed developments and,
particularly, in joint development agreements.
4. Purchase land following highest and best use analyses and agreements with developers.
5. RFP/RFQ process to select developers for housing developments
Small Home/Manufactured Housing Developments
Encourage micro and tiny housing that would be more affordable to locals. This is another type of
housing but is not expected to replace existing housing types.
1. Create design standards for manufactured housing and small home construction that fit with
City aesthetics and specific neighborhood patterns. Some examples of cities that allow tiny
homes include Walsenburg, CO; Durango, CO; Rockledge, FL; Nantucket, MA; Detroit, MI;
Portland, OR; Spur, TX; Austin, TX; Fort Worth, TX; and Dallas, TX.
2. Minimum size requirements for mobile homes could be removed in the Code. This is a
technique used in other jurisdictions to allow for small homes.
3. Meet with developers to gauge interest in the design standards.
4. Survey market for demand characteristics to project potential absorption of this housing
type.
Urban Renewal Area (URD)
The creation of an Urban Renewal Area can be an effective tool in redevelopment and providing additional
housing options within the City.
1. Create an urban renewal area in the City’s Downtown and use the tax increment for local-serving
housing.
2. As a general guideline, for every $1 million in increased taxable (assessed value), nearly $8,900 would
be generated in incremental property tax revenues annually.23 Over ten years this would represent
23 Calculation based on the following taxing entities and tax rates: McCall City (0.4928416); Valley County
(0.1771007); Valley County EMS (0.0229143); McCall Cemetery District (0.0016943); McCall Fire District
(0.1143258); McCall Memorial Hospital District (0.0608048); and Payette Lakes Water & Sewer Districts
(0.0199672).
McCall Area Housing Study | 57
revenues of approximately $89,000, and $178,000 over 20 years, and could be used to incentivize
local-serving housing. Significant development must occur in order to generate significant tax
increment property tax revenues.
Local Sales Taxes
Local Option Tax (LOT) - Revenues range from year to year, but are anticipated around $1.1 million from
the one percent on all non-grocery retail sales, $487,000 from the three percent on lodging for streets
and another $487,000 from the three percent on lodging for tourism.
1. Consider increasing the one percent to two percent, similar to Sun Valley, thereby providing an
additional $1.1 million per year for local housing programs.
2. This tax is up for vote again in 2018; if not passed, it will expire. At the time of the renewal vote,
McCall should modify uses to include local-serving housing.
Other Steps
1. Incentivize developers to build local housing in the private market by granting higher density for
affordable units. The City currently has density limits in the CBD (60 units/acre) and the CC zone
(40 units/acre); however, the draft code removes these density limits. It is important to allow
higher-density residential development, especially in the downtown area.
2. Ensure that future development has a local housing component and does not displace existing
affordable housing with other uses.
3. Partner with local groups such as the Housing Trust, churches, Habitat for Humanity, colleges,
etc., to construct housing at a lower cost.
4. Other communities have created employee housing programs to provide housing options for city
employees. Creating this type of program in McCall would rely on executing many of the next
steps already identified, including land baking, selecting developers through an RFP/RFQ process,
and securing a dedicated funding source.
5. Work with the Legislature to allow local communities to use Inclusionary Housing as a tool to
create affordable housing.
6. Streamline the permitting process for locally-serving housing units.
7. Consider fee waivers for projects that include local housing units.
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McCall Area Housing Study | 59
Residence Number of Employees
McCall, ID 367
Boise City, ID 106
Cascade, ID 68
Meridian, ID 58
Nampa, ID 46
New Meadows, ID 33
Caldwell, ID 25
Council, ID 25
Mountain Home, ID 21
Donnelly, ID 18
Lewiston, ID 16
Twin Falls, ID 14
Marsing, ID 12
Weiser, ID 11
Eagle, ID 10
Homedale, ID 10
Kuna, ID 10
Pocatello, ID 10
Coeur d'Alene, ID 9
Baker City, OR 7
Idaho Falls, ID 6
Glenns Ferry, ID 5
Middleton, ID 5
Payette, ID 5
Rathdrum, ID 5
Robie Creek, ID 5
Pendleton, OR 5
Grand View City, ID 4
Grangeville City, ID 4
Hayden City, ID 4
Moscow City, ID 4
Spokane City, WA 4
Garden City, ID 3
Hailey City, ID 3
Hidden Springs CDP, ID 3
Idaho City, ID 3
Jerome City, ID 3
Kamiah City, ID 3
Lincoln CDP, ID 3
Parma city, ID 3
Post Falls City, ID 3
Rexburg City, ID 3
Smiths Ferry CDP, ID 3
LaGrande City, OR 3
Milton-Freewater city, OR 3
Cottonwood City, ID 2
60 | MCCALL IN MOTION
Residence Number of Employees
Fruitland City, ID 2
Harrison City, ID 2
Horseshoe Bend City, ID 2
Mountain Home AFB CDP, ID 2
Mullan City, ID 2
Murphy CDP, ID 2
Riggins City, ID 2
Rupert City, ID 2
Yellow Pine CDP, ID 2
Missoula City, MT 2
Hermiston City, OR 2
Portland City, OR 2
Union city, OR 2
Weston City, OR 2
Spokane Valley City, WA 2
McCall Area Housing Study | 61
The maps below were completed for South Jordan, UT, but visually show the impacts of the Daybreak
community – located on the western edge of the City. When affordability is considered on a unit/parcel
basis, Daybreak is less expensive because of its higher density. However, when considered on a per acre
basis, Daybreak is not less expensive. Therefore, Daybreak contributes well to the tax base of the
community while, at the same time, offering more affordable housing units to a wider segment of the
population.
Figure 25: Housing Affordability on a Per Unit Basis
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Figure 26: Housing Affordability on a Per Acre Basis
McCall Area Housing Study | 63
16.30.03 MODERATE INCOME HOUSING REPORT AND REQUIREMENTS
This chapter shall apply to all new developments of six (6) equivalent residential units (ERUs) or more. The
requirement to provide moderate income housing shall be based on a moderate-income housing report
provided by the developer. The moderate income housing report shall have, at a minimum, the following
information: price of the proposed units/lots, anticipated mortgage payment per month with current
interest rates, calculations showing the number of proposed units at or above the eighty percent (80%)
AMI (including HOA fees, utilities using current rates, cable, other fees), an estimation of the moderate
income housing impacts created by the development, average monthly pay for any employees created by
the development backed up by industry standards, estimate of the number of contract employees created
by the development, second home percentages anticipated, and a proposal to satisfy the moderate
income housing needs created by the development. If the proposal is a resort development the applicant
shall provide the proposed resort's seasonal workforce housing plan that provides moderate income
housing in a socially, economically and environmentally responsible manner. The applicant may be
required to provide additional information if deemed necessary by the county to determine the impacts
on moderate income housing.
The moderate-income housing report provided by the developer will be reviewed by the county. At the
sole discretion of the county the county reserves the right to have an independent study performed, at
the expense of the developer, or to have the independent study provided by the developer reviewed by a
source determined by the county. The county council, after reviewing independent reports provided by
the applicant, reports and reviews commissioned by the county, recommendations by the planning
commission and the Wasatch County housing authority shall determine if the applicant must meet the
moderate-income housing requirements.
If a development is found to be creating a need for moderate income housing, the development shall
provide an equivalent of ten percent (10%) of the development (in addition to the density approved) for
moderate income housing through construction of affordable housing units on site within the
development being proposed (if appropriate after reviewing constraints and type of development),
construction of affordable housing units off site, contribution of land, or by payment of a fee in lieu. Any
combination of the aforementioned options shall be allowed after recommendations from the planning
commission, Wasatch County housing authority (WCHA) and approval by the county council. Preference
shall be given for options that allow ownership opportunities for residents.