The Hailey City Council shot down a proposal by Old Cutters subdivision developer John Campbell on Monday night that would have allowed him to build only "workforce housing" units to satisfy his community housing requirements. As a result, the subdivision's construction schedule will have one affordable housing unit built for every four market-rate units, as originally planned, rather than an accelerated ratio of one-to-one, as Campbell had recently proposed.
Hailey requires that 20 percent of new housing developments be deed-restricted affordable housing. No more than half of those can be workforce housing, whose buyers are restricted on the basis of net worth; the rest are restricted by income. The prices of workforce housing units are set by developers, while the prices of income-based units are set by the Blaine County Housing Authority.
Campbell had also requested that the city waive his sewer and water hook-up fees for community housing units in the subdivision.
"I have people who were born and raised here that have financing and are ready to buy these (workforce) units," he said. "Some of them will even be out there building the units themselves."
Fritz Haemmerle was the only council member in support of sending Campbell's proposal to the Planning and Zoning Commission for further deliberation, saying that it could allow for "shovel-ready" building jobs in Old Cutters and provide more flexible decision-making for the city during economically challenging times.
"My interest is in getting people working," Haemmerle said.
Yet of Blaine County Housing Authority Executive Director Kathy Grotto and ARCH Community Housing Trust President Rebekah Helzel spoke out in favor of keeping Hailey's community housing requirements in place.
"The cost of workforce housing starts out high, stays high and never comes down," Grotto said.
Helzel said workforce housing units typically sell for 10 to 12 percent below market rates. She said community housing units must sell for at least 30 percent less than market rates to be a "permanent asset" to the community.
Of 90 housing units the Blaine County Housing Authority program, 85 are income-based deed restricted, while five are workforce deed-restricted.
Tony Evans: tevans@mtexpress.com