Michael David is a former board member and executive director of the Blaine County Housing Authority. He is the current executive director of Valley Adams Regional Housing Authority. David Reinhard's column will return next week.
By MICHAEL DAVID
It took 11 long years to accomplish, but elected officials in Blaine County are close to finishing off the local housing authority.
Formed in 1997, BCHA has helped create nearly 100 homes for families that otherwise would not be able to live here. It has survived despite lack of support from local officials, tensions among municipalities over control of this independent agency and frequent dissemination of inaccurate information. Due to this environment, the authority has struggled to retain staff and volunteers.
From the start, Blaine County and Ketchum have supported the authority financially. Recently, Sun Valley and Hailey also contributed support. Until 2005, this financial support, combined with revenue received from the sale of affordable homes and a portion of in-lieu fees, allowed the authority to operate. However, in 2006 Blaine County reduced its support and Ketchum pulled its completely.
In 2006, Blaine County disregarded Idaho statute by appointing the Sun Valley city administrator to the authority board. This misguided appointment replaced a long-time citizen volunteer who was willing to serve another term. Ironically, Sun Valley then backed out of an agreement to pay the authority the fees it deserved from the sale of affordable homes in Elkhorn. These events led to a mass resignation of four authority board members and the loss of executive director No. 5.
The city of Ketchum also contributed to the demise of the authority by pulling financial and political support. In 2001, Blaine County and Ketchum agreed to give 10 percent of in-lieu fees received from developers to the authority for operations and 90 percent to acquire land or create housing. From 1997 to 2005, Blaine County and Ketchum turned over about $440,000 of in-lieu fees. The authority used $44,000 for operations and placed the remaining $396,000 in reserve accounts to be used to build affordable housing. In 2006, Ketchum received $700,000 of in-lieu fees from the developers of Chilali Lodge. Under Resolution 800 and a contract for services between Ketchum and the authority, $70,000 of those fees should have been given to the authority for operations, and $630,000 should have been used for affordable housing. However, Ketchum refused to turn over any of the funds.
Eventually, Ketchum gave the authority the $70,000 for operations, but never gave it the $630,000. Additionally, the city refused to return $330,000 of in-lieu fees the authority contributed to the failed attempt to acquire Bavarian Village. Over $1 million in fees was collected from developers and retained by Ketchum.
Despite these events, Ketchum insists the authority pay it about $100,000. In 2006, due to the financial rug's being pulled out from under the authority by the cities of Sun Valley and Ketchum, it was forced to borrow approximately $100,000 from its reserve accounts to make payroll and continue operations. This money was collected from private developers, belonged to BKHA and was to be used to create affordable housing. While the authority is required to pay back these reserve accounts, Ketchum's insistence that it pay the city can be considered the straw that broke this camel's back.
The destruction of the authority is serious on many levels. Foremost is the effect on the nearly 500 families served by the authority. These households lose the supporting agency to help navigate the waters of home ownership. When they have an issue regarding their existing home or a home they wish to buy or rent, who will they call for answers at the city of Ketchum or Blaine County? The development community loses its liaison to help it understand community housing regulations. The public loses an agency fighting for the economic development of the region by ensuring a supply of workforce housing. The cities and county lose an expert to monitor compliance with existing deed restrictions. Without an authority to support the citizens in need of housing, local governments will be forced to enter the housing development and property management business—functions they are not equipped to perform.
It is not too late to save the authority, but it will take a commitment from local governments. Unfortunately, many local officials have preferred to treat the authority as a political football. By allowing the authority to die a slow death, they have sent a message to their constituents that they are not concerned with the lack of affordable housing in Blaine County.
