/ Big Sky Affordable Housing PRELIMINARY ARCHITECTURAL REPORT (DRAFT) - PRESENTATION TO THE PUBLIC Warren Miller Performing Arts Center - Big Sky, MT GALLATIN COUNTY
because it is more financially feasible for the development community to build for-sale units affordable to this range and because ownership is more feasible for the households, they are generally the target for ownership housing policies. Figure 1 Workforce Housing Spectrum Workforce Housing Needs / Big Sky Affordable Housing Presentation PROBLEM DEFINITION Workforce Housing Spectrum of Need Part-Time & Seasonal Workforce (e.g. Lift Operators, etc.) Service Workforce (e.g. Waiters, Maids, etc.) Community Workforce (e.g. Teachers, Fireman, Police, etc.) < 50% AMI Income: $30,000 or less Rent: $700/month or less 50 to 100% AMI Income: $30,000 - $60,000 Rent: $700 - $1,450/month 100 to 140% AMI Inc: $60,000 - $80,000 Home Price: $180K to $260K Employee Housing (Dormitory/Lodge Units) Rental Ownership (Townhome/Duplex) Private Housing Solution Community Housing Solution * Excerpt from Big Sky Housing Development Plan (7/1/2014) by Economic & Planning Systems, Inc Prepared for Big Sky Chamber of Commerce Economic & Planning Systems, Inc. 3 Revised Draft Report page 2
/ Big Sky Affordable Housing Presentation PROBLEM DEFINITION Workforce Housing Need Big Sky Housing Needs & Targets Conditions 83% of 2,300 workers commute in In-commuting growing 8% / year Community Housing Policy Target 60% of workforce lives locally Less 370 existing Big Sky resident workers 1,010 new workers living locally 670 occupied housing units 50% of in-commuters live locally 950 new workers living locally 630 occupied housing units Spectrum of Need 67% of wage earners under $25,000 (employer survey) 82% of wage earners under $40,000 (U.S. Census LEHD) Balance of rental and ownership housing Workforce Housing Housing Need * Excerpted from Big Sky Housing Development Plan (7/1/2014) by Economic & Planning Systems, Inc Prepared for Big Sky Chamber of Commerce Big Sky Housing Plan 9 page 3
/ Big Sky Affordable Housing Presentation PROBLEM DEFINITION Workforce Housing Housing Need EPS Report Spectrum of Need and Associated Funding Sources Ownership *(70-100 units) target 70-140% AMI CDBG/HOME FUNDED 58-82 units >80% AMI 12-18 units <80% AMI 32-50 units <60% AMI OTHER FUNDING 33-50 units >80% AMI 65-100 units 60-80% AMI POSSIBLE CDBG/HOME FUNDING Long-term Rental (130-200 units)* target 50-100% AMI * Recommendations from Big Sky Housing Development Plan Final Report by Economic & Planning Systems, Inc. dated July 1, 2014, see Appendix A. Notes from HRDC, see Appendix. Numbers adjusted by HRDC for specifics of this project. page 4
Big Sky Zoning District To Bozeman 53 minutes To Belgrade 56 minutes / Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS Site Selection Process Location Map To Big Sky Resort 10 minutes Big Sky Madison County Montana Wyoming To West Yellowstone 1 hour 2 minutes page 5
/Big Sky Affordable Housing Preliminary Site Search April 29, 2015 Response Map Big Sky Region Map / Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS Site Selection RFI Responses Page 8 page 6
/ Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS /Big Sky Affordable Housing Preliminary Site Search April 29, 2015 Site Selection Matrix Site Selection Process Selection Matrix Criteria Weight 1-3 (1=least important, 3=crucial) 3 3 2 2 2 1 1 1 1 1 Site Weighted Property Ranking (Higher Number is Better, Maximum of 80) Property Name/Location Legal Description of Property Property Zoning / Public Support Price/ Acre Acres Usable for Development Public Water Service Public Sewer Service Total Size of the Property Availabile for Sale / Negotiation Street Infrastructure on the Property Access to Gallatin Rd/HWY 191 or Lone Mtn Trail/Hwy 64 or Ousel Falls Road Access to the Skyline Bus System A 58 Meadow Village Center Meadow Village Center Condo Minor Sub 91b Lot 1a-1 Unit Lot 7 4 1 1 5 5 1 5 5 5 5 B 47 47845 Gallatin Rd Big Sky Mt 59716 S32, T06 S, R04 E, C.O.S. 2333, Parcel B 3 5 1 2 2 1 2 2 5 3 C 63 145 Center Lane Big Sky Meadow Village Center Condo S36 T06 S R03e Unit 1c Minor Sub 91c Lot 1a-1 Sw4 Sec 31 5 2 1 5 5 1 5 5 4 5 D 73 Tract 2 of Sweetgrass Hills Tract 2 of Sweetgrass Hills_Plat H-36_Section 36, T6S, R3E 5 5 5 4 4 3 4 2 4 4 E 64 Spruce Cone Lots Lots 5 & 6 Block 1 - West Fork Meadows 3 3 2 5 5 2 5 5 5 5 F 52 Madison County Mountain Village 1 3 2 5 5 2 2 5 3 4 G 41 TBD Gallatin Road, Mile Marker 66 S29, T04 S, R04 E, C.O.S. 515 1 5 2 1 1 2 5 2 4 2 H 68 111 McBride Ln Big Sky, Mt 59716 S02, T07 S, R03 E, C.O.S. 214, TR in NE quadrant 5 4 5 4 4 3 2 2 4 4 page 7
/ Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS Selected Site Local Map Site D /Big Sky Affordable Housing Preliminary Site Search April 29, 2015 Response Map Big Sky Region Map Big Sky page 8
/ Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS OPTION A 18 attached condos - 2 stacked units - 3 stories total 46 parking spaces (16 on-street, 30 on-site) Options A, B, C & D Planning Concepts & Site Layout OPTION B 18 attached townhomes - 2 stories total 46 parking spaces (16 on-street, 30 on-site) OPTION C 6 attached condos - 2 stories total 6 detached SFH - w/ 45 x 80 lots 31 parking spaces (13 on-street, 18 on-site) OPTION D 10 detached SFH - w/ 45 x 80 lots 30 parking spaces (10 on-street, 20 on-site) page 9
Option Unit Costs Comparisons Option A: Option B: Option C: Option D: 18 Condos 18 Townhomes 6 Condos 10 Single Household & 6 Single Household 18 Total Units 18 Total Units 12 Total Units 10 Total Units / Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS Comparison Unit Costs 2-Story Condo 3bd/2.5ba 2-Story Townhome 3bd/2.5ba 2-Story Condo 3bd/2.5ba 9 units @ $343,327 each 18 units @ $359,571 each 6 units @ $374,306 each Land Cost $34,167 Land Cost $34,167 Land Cost $51,250 Site Costs $41,995 Site Costs $47,290 Site Costs $41,995 Bldg Cost $198,500 Bldg Cost $206,200 Bldg Cost $206,200 Garage/Carport - Garage/Carport - Garage/Carport - Soft Costs $68,665 Soft Costs $71,914 Soft Costs $74,861 1-Story Condo 2bd/1ba 2-Story Single Fam. 2bd/1.5ba 2-Story Single Fam. 2bd/1.5ba 9 units @ $263,952 each 3 units @ $384,931 each 4 units @ $397,744 each Land Cost $34,167 Land Cost $51,250 Land Cost $61,500 Site Costs $41,995 Site Costs $69,895 Site Costs $69,895 Bldg Cost $135,000 Bldg Cost $186,800 Bldg Cost $186,800 Garage/Carport - Garage/Carport - Garage/Carport - Soft Costs $52,790 Soft Costs $76,986 Soft Costs $79,549 2-Story Single Fam. 3bd/2.5ba 2-Story Single Fam. 3bd/2.5ba 3 units @ $435,556 each 6 units @ $448,369 each Land Cost $51,250 Land Cost $61,500 Site Costs $69,895 Site Costs $69,895 Bldg Cost $227,300 Bldg Cost $227,300 Garage/Carport - Garage/Carport - Soft Costs $87,111 Soft Costs $89,674 Option A Total Cost $5,465,513 Option B Total Cost $6,472,275 Option C Total Cost $4,707,300 Option D Total Cost $4,281,188 page 10
Option Total Costs Comparisons Option A: Option B: Option C: Option D: 18 Condos 18 Townhomes 6 Condos 10 Single Household & 6 Single Household 18 Total Units 18 Total Units 12 Total Units 10 Total Units / Big Sky Affordable Housing Presentation ALTERNATIVE ANALYSIS Comparison Total Costs Land Cost $615,000 Land Cost $615,000 Land Cost $615,000 Land Cost $615,000 Site Costs $755,910 Site Costs $851,220 Site Costs $671,340 Site Costs $698,950 Bldg Cost $3,001,500 Bldg Cost $3,711,600 Bldg Cost $2,479,500 Bldg Cost $2,111,000 Garage/Carport - Garage/Carport - Garage/Carport - Garage/Carport - Soft Costs $1,093,103 Soft Costs $1,294,455 Soft Costs $941,460 Soft Costs $856,238 Option A Total Cost $5,465,513 Option B Total Cost $6,472,275 Option C Total Cost $4,707,300 Option D Total Cost $4,281,188 page 11
/ Big Sky Affordable Housing Presentation PREFERRED ALTERNATIVE Concept Details Preferred Option Net Parcel Size - 4.14 acres 40 Road ROW -.51 acres Existing Property Line Temp Turnaround Easement.17 acres 18 attached condos w/ 22 32 footprint - 2 stories total Planning Concept Possible Relaxations Required: Road ROW Width Park Second Access 46 parking spaces (16 on-street, 18 on-site covered, 12 on-site open) Front Setback Preferred Alternative Planning Configuration Proposed Lot Line Remainder Parcel Existing 60 Access Easement Future Street Connection Easement Tennis Courts Athletic Fields 0 25 50 100 Scale in Feet page 12
/ Big Sky Affordable Housing Presentation PREFERRED ALTERNATIVE Preferred Alternative: 18 Condos - Unit Cost Breakdown 17 units total 2-Story Condo 3bd/2.5ba Land Cost Site Costs Bldg Cost Garage/Carport Soft Costs Cost per Unit 1 unit total Cost per Unit 17 units @ $359,442 each 1-Story ADA Condo 3bd/2.5ba 1 unit @ $370,317 each $34,167 $42,887 $197,000 $13,500 $71,888 Land Cost Site Costs Bldg Cost Garage/Carport Soft Costs Preferred Option Site Layout $34,167 $42,887 $205,700 $13,500 $74,063 Remainder Parcel Total Cost $6,480,833 7 8 9 10 11 12 Temporary Turnaround Easement 18 covered parking spots 1 2 3 4 5 6 12 open parking spots 13 14 15 16 17 18 0 30 Wide Road (16 parking spaces on one side) 25 50 100 Scale in Feet page 13
/ Big Sky Affordable Housing Presentation PREFERRED ALTERNATIVE Preferred Option 6 Units le tt d i L o oa t ss te R e c o Ac Coy Carport (18 spaces) 6 Units Pa (12 rkin Sp g L ac ot es ) Pr op os ed Ro a 3 Bed/2.5 bath unit (1,341 gsf, 32 22 footprint) Deck Conceptualization ne d ed s po Living Room 13 11 o Pr Mech 3 7 Kitchen 13 9 Li t Lo o s t ad s e o cc te R A re o tu Coy u F tle Lit 1/2 Bath 3 8 Bedroom 9 9 Bedroom 10 9 Dining 12 9 Ex ist in gp *the above image does not represent design intent ro p er ty Lin e up Main Level Plan (637 sf) Garden/ Landscape Bath 8 5 Bath 10 5 down Laundry Entry 7 5 Master Bedroom 13 11 Closet Upper Level Plan (704 sf) page 14
/ Big Sky Affordable Housing Presentation PREFERRED ALTERNATIVE Preferred Alternative: 18 Condos - Unit Cost Breakdown 17 units total Cost per Unit 1 unit total Cost per Unit 2-Story Condo 3bd/2.5ba 17 units @ $359,442 each 1-Story ADA Condo 3bd/2.5ba 1 unit @ $370,317 each Land Cost $34,167 Land Cost $34,167 Site Costs $42,887 Site Costs $42,887 Bldg Cost $197,000 Bldg Cost $205,700 Garage/Carport $13,500 Garage/Carport $13,500 Soft Costs $71,888 Soft Costs $74,063 Preferred Option Unit Costs Preferred Alternative: 18 Condos - Total Cost Breakdown 18 units total Total Cost Land Cost $615,000 Site Costs $771,966 Bldg Cost $3,554,700 Garage/Carport $243,000 Soft Costs $1,296,167 Total Cost $6,480,833 page 15
Preferred Alternative: 18 Condos 18 Total Units Total Cost $6,480,833 / Big Sky Affordable Housing Presentation PREFERRED ALTERNATIVE Preferred Option Potential Revenue Preferred Alternative Potential Revenue Scenario #1: 77% of units (14) for homeownership for households earning less than 80% AMI; remaining at market rate Potential Revenue Sources Amount Assumptions Community $420,000.00 Maximum grant with reduced affordable units Federal Home Loan Bank -AHP $280,000.00 $20,000/unit HOME competitive grants $750,000.00 Maximum grant amount Affordable target sales 3bd/2.5ba $2,660,000.00 Max affordable sales price = $214,000; target $190,000 Market rate home sales 3bd/2.5ba $1,200,000.00 Based on current market comparable listings Shared infrastructure costs $77,197.00 10% infrastructure costs Land donation $307,500.00 50% of assumed land costs Private and community funding $786,136.00 TOTAL revenues $6,480,833.00 Expenses less revenue $0 Note: Grants are contingent upon successful application to funding sources. page 16
/ Big Sky Affordable Housing Presentation PREFERRED ALTERNATIVE Potential Funding Sources Explained Potential Funding Sources Acronym Community Development Block Grant CDBG Uses and contingencies Land acquisition, infrastructure or construction; Competitive process to state, application likely due April 2016 (requires sponsorship by ); maximum grant amount is $450,000 or $30,000 per unit; only applicable to projects with at least 50% of units affordable to households earning less than 80% AMI (homeownership projects) or 60% (rental projects) Federal Home Loan Bank -AHP FHLB-AHP Land acquisition, infrastructure or construction; requires sponsorship by member bank, competitive application due in Spring 2016, only funds units affordable to households earning less than 80% AMI HOME competitive grants HOME Land acquisition, infrastructure or construction; Competitive process to state, application rolling (requires sponsorship by or Community Housing Development Organization); maximum grant amount is $750,000; only applicable to projects with at least 50% of units affordable to households earning less than 80% AMI (homeownership projects) or 60% (rental projects) HOME Down-payment assistance Private & Community Funding Affordable target sales Market rate home sales HOME DPA Provides down-payment assistance of no more than $30,000 per unit to households earning less than 80% AMI; can be accessed via HRDC; cannot be used on homeownership units constructed using HOME competitive funds Potential sources include: resort tax funds, private donations, grants, and foundation support Subsidized sales prices targeted to households at specific income levels; subsidy is secured via lien on property and/or Community Land trust Sales at market rate without restrictions; used to make project feasible; reduces subsidy amounts project can receive Housing Tax Credits LIHTC Provides project capital to rental housing developments serving households earning less than 60% AMI; competitive process via Montana Board of Housing; due Fall; adds development soft costs; approximately 25% of units will need to serve households earning less than 40% AMI for a competitive application Private financing Shared infrastructure costs Land donation Projects will require construction loan financing for at least a portion of costs; loan is taken out via unit sales (homeownership projects) or long-term financing (rental projects -paid back through rent revenues) Share infrastructure development costs with adjacent owner Seek price reduction or full donation of land value page 17
/ Big Sky Affordable Housing Presentation Next Steps to complete the Report... - Design Team incorporates revisions to Report in response to Public Meeting questions, concerns & comments - Project Team presents Report to Commission on November 10, 2015 (9am) - Design Team finalizes report & submits to & Big Sky Chamber of Commerce (to be included as Appendix D in z Grant Application) page 18
/ Big Sky Affordable Housing Presentation Thank You! page 19