Housing authority pulls support for housing project

The Blaine County Housing Authority has withdrawn its support and involvement with the county’s first affordable housing project, the Myrtle Court Townhomes on West Myrtle Street in Hailey, developed by Dave Manookian.

The two-bedroom, two-bath townhomes are 1,130 square feet, and ranged in price from $105,000 to $109,000, a price that, according to the authority, is too expensive.

As a mechanism to insure affordability, Manookian planned to donate the land to the authority, which would give the land to the homeowner. The authority was also to market the homes, and create buyer’s packets and criteria for potential buyers.

Two points of contention were pricing of the units and ownership of the land.

Manookian pushed the authority to retain ownership of the land and lease it for a nominal fee to the homeowner in order for tax purposes. The authority asserted that Manookian could still receive tax incentive if it didn’t hold onto the land.

"We don’t want to become a land lord," said housing coordinator Karl Fulmer.

Fulmer said the project isn’t viable with the combination of a land lease, high price and limit on capital improvements. The authority agreed that the price was competitive, but not with a land lease or deed restriction.

"You have to come in well below the market rate to make this a good investment for the buyer because the tradeoff is little equity appreciation," said authority member Steve Horowitz. "Manookian is trying to make too much of a profit, and that’s a problem in my mind."

Horowitz said affordable housing must be funded by the public sector which does not have a profit motive.

"Affordable housing will make this a real place to live, not just the shell of a resort town," he said.

"I have a lot of faith in my project," said Manookian. "It’s like your own home; there’s no one above you or next door to you. The homes each have a yard and an attached garage that serves as the common wall," he said. "The price they want is unrealistic."

The developer said he will meet with the city of Hailey for direction on the project.

Manookian and the authority did agree on one thing: the community needs affordable housing.

"This is a sad predicament, because we really need it," said Manookian.