Background
Jackson has long dealt with affordable housing challenges.
Advocates and organizations have worked hard to address that problem. Now, an affordable workforce project is raising some eyebrows in the community: the Nelson Drive Housing project.
The Jackson Hole Community Housing Trust, nonprofit affordable housing developer, has worked out an agreement with the U.S. Forest Service to build 36 affordable workforce rentals on national forest land on the eastern edge of Jackson.
The 30-year special-use permit is being touted as a first of its kind, meaning the public-private project could set a precedent for housing federal workers nationwide.
Thirteen of the rentals are reserved for Forest Service workers. Twelve could go to local government employees. And the rest would be split between an unnamed nonprofit and the housing trust’s waitlist.
To close a funding gap and ensure construction begins as soon as the snow melts, the trust is asking Jackson and Teton County officials for just over $8 million of local tax dollars. They see this as the quickest way to get the project started.
But others are worried about construction impacts on the neighborhood, like traffic. Some question whether the affordable housing on public land should go to private businesses. And others think the project’s approval is a “slippery slope” that is whittling away public land.
Dec. 10 joint town and county Housing Supply Board advisory meeting
Extra stools and chairs line the conference room in the basement of the old Teton County Library. About two dozen people squeeze down a narrow stairway to watch a Dec. 10 volunteer board meeting.
The joint town and county Housing Supply Board meets monthly to advise local electeds. It’s the nitty and gritty of the public process and it typically has no audience.
But Jackson/Teton County Housing Director April Norton, who leads the board, said this is likely the most eyes a board meeting has had.
“We expected a big crowd,” Norton said, “It was bigger than we thought.”
That’s because the Nelson Drive workforce housing project was on the agenda.
On a popular trailhead on Jackson’s eastern edge, the Bridger-Teton National Forest is partnering with the Jackson Hole Community Housing Trust to build affordable rentals on public land. The project will cost about $33 million. Project leaders want around a quarter of that – $8.1 million – from the town and county to get going as soon as possible.
In exchange, the local governments would get the right to rent 12 units to staff for at least 30 years. Rent would be around half of the market price. Over 100 staff are already on the waitlist for the Housing Trust.
Chad Hudson leads the Bridger-Teton. The forest needs over 70 homes for workers who otherwise commute to Jackson or cram into neighboring offices like Pinedale. With this project, it’s set to get 13.
“I think the sense of urgency right now is greater than it’s ever been,” Hudson said.
The deal seems good to town councilors. County commissioners have yet to weigh in. Members from both sets of governing offices were at the housing supply board meeting.
“I think the discussion really centered around ‘Is this the best bang for our buck here?’” Norton said.
If Jackson Hole electeds listen to what the board recommends, they won’t throw in $8 million for the shovel-ready project.
“It’s just too [many] dollars for too few people,” board member and financial advisor Matt Lusins said.
Lusins and his colleagues said the town and county should negotiate for double the units, or first rights of rental, of Housing Trust homes.
Anne Cresswell leads the Housing Trust. She said she can’t make that work.
“It’s a non-starter,” Cresswell said.
The homes, which cost around $1.3 million to build, are already over half market price, she said. Though she stopped short of saying there’s no room for negotiation, she feels her nonprofit has already put its best foot forward.
Without the $8 million, she said the project will stall for at least a year as she looks elsewhere for the money through private donations or partnerships.
“That would be a tremendous loss for our community, for forest service employees, for town and county employees,” she said.
The conversation comes as the same pot of money – $20 million – is being mulled for a much larger housing complex, this one from Norton’s department.
Norton said there’s a good chance that 90 Virginian Lane will not require those Specific Purpose Excise Tax, or SPET, funds. And that’s for over 200 homes.
But if “The Virg” does need to dip into that pool, she estimates there’s enough SPET money for both projects and some leftover.
“I don’t see it as a competition, I see it as two different product types and two different opportunities,” Norton said.
Cresswell agrees.
“We need a mix of all kinds of housing unit types,” she said.
The Forest Service project will happen with or without local government funds, albeit more slowly.
But back in the basement, the volunteer board members are thinking about the precedent for the millions of tax dollars earmarked for affordable housing.
“We need to be thinking longer term in this community as to how we can continue to guarantee we are housing town and county staff,” board member Carrie Kruse said.
In the coming weeks, electeds will signal for the first time what kind of affordable housing they’re looking to spend SPET dollars on. The town council is expected to make a decision as soon as Dec. 15. The county has yet to slate the housing project on its agenda.
Cresswell said she needs to know by mid-January. Otherwise, she has to look elsewhere for private philanthropy or partners to buy in. And everyone waits a year, at least, as housing prices continue to rise.
Project updates
Despite the advice of its advisory board, the Town of Jackson voted to spend up to $4 million dollars in set-aside tax dollars for the rights to rent six units last month.
Unlike the town, Teton County remains skeptical about the price of opting into the project for just the rights to rent 6 units.
There’s been one more hiccup with the project in the new year.
A lawyer who lives down the street from the project sued, arguing that it isn’t allowed in the scope of this “first of its kind” special use permit, the public hasn’t received enough notice and the modular housing would harm him and his neighbors.
Both the housing trust and the Bridger-Teton National Forest were not surprised they were sued. They’d had conversations with the plaintiff before. But they say they’re confident in their legal standing and hope it won’t derail their expected Spring start.
Anne Cresswell, who leads the trust, said they have enough capital to move forward with 31 units even if the county decides not to opt in.
