A developer behind several large building projects in downtown Bozeman is proposing to build an income-restricted, affordable housing project in the city.
HomeBase Partners submitted plans to build a five-story, 111-unit building at the corner of North 5th Avenue and Villard Street. Andy Holloran, with HomeBase, said the building is a vacant senior care center that they originally were planning to renovate. Working with city code on the decades-old building proved difficult, Holloran said, so they decided to go another route and demolish the building and rebuild.
Called “The Guthrie,” the project is proposed to have half of the units limited to those making 80% of area median income or less.
“We recognize that the cost of housing in Bozeman and the surrounding area is really difficult and tough for a lot of people,” Holloran said. “And so this is a great location, it’s an opportunity to really provide another option for that missing middle or lower incomes and still provide a brand-new, high-quality walkable location.”
Holloran said part of the reason he wanted to build an affordable project is because workers at the AC Hotel, which HomeBase built, are having a hard time finding housing. About two dozen employees were being housed at the hotel, and are now at another of HomeBase’s buildings because they couldn’t find a place to live.
“We’ve been focused on the downtown core, and our projects tend to cater to a little higher end,” Holloran said. “So this is so gratifying that we can find a site that is walkable and provide the first deep incentive project in the city.”
Area median income, or AMI, is a metric put out by the U.S. Department of Housing and Urban Development used to target affordable housing projects to people in certain income ranges. According to HUD, the 80% income limit for one-person is $58,950 in Gallatin County. For two people it is $67,350.
Holloran said that the other half of the units will be rented for market-rate prices. The units are proposed to be all one-bedrooms, Holloran said, and they are planning to furnish about a third of them.
Holloran’s project is the first proposed in the city to make use of the “deep incentives” permitted by the new affordable housing ordinance passed in 2022. That ordinance incentivizes affordable housing by allowing developers to receive relaxations from city development codes in exchange for building affordable units.
Several developers have used the “shallow incentives” allowed by the ordinance, which require fewer units to be provided in exchange for the benefits.
The deep incentives allow for more departure from the code but require 50% affordability.
“We’re definitely starting to see more projects coming in and using the ordinance,” said David Fine, with the city’s economic development department. “We’re cautiously optimistic that it is going to be successful and drive a decent number of affordable units.”
In return for the 50% affordable units, Holloran said they are proposing to be allowed additional height and relaxations from parking requirements. They are planning for a five-story building, and enough parking on-site for about 30% of the units, Holloran said.
The project costs are north of $20 million, Holloran said.
If the city approves the development, Holloran said the goal is for construction to start in the spring and wrap up by May 2025.
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