Piloted home

Jim Jarvis, the newly installed Madison County housing coordinator, is on a mission to create more affordable housing options for local communities. Since taking on the role on July 1, Jarvis remains engaged in understanding the complex landscape of housing needs in the area, particularly for those who form the backbone of the local economy—workers in the building trades, healthcare, education, agriculture, conservation and tourism.

“I’ve been on the job now for three months, and it’s been very interesting. I’m enjoying the work,” Jarvis said in a recent phone interview. 

One focus is the governor’s housing task force and its implications for Madison County. 

“There’s a lot going on on the subject these days, whether it’s at the local level, state, or even federal for that matter,” said Jarvis, who sees great potential in acquiring publicly-owned land for affordable housing.

“The one question I’ve been trying to get answered... is the question about state-owned land. And whether some of that state-owned land could be made available for affordable housing development,” explained Jarvis. His vision includes a survey of state-owned land to identify parcels suitable for development in proximity to existing infrastructure like roads, water and sewer.  

“There’s a fair amount of public land, whether it’s local government or state government that is out there,” said Jarvis. “In many cases, it’s vacant land that isn’t doing a whole lot.”

Jarvis detailed how by embracing the community land trust approach, Madison County could find a variety of ways to acquire public land for free, then utilize it for housing sold below market value. 

“Specifically, in Virginia City, the Montana Heritage Commission, which is a state agency under the Department of Commerce, has a lot of vacant land that hasn’t been utilized much,” he said. “The Housing Advisory Board here in Madison County encouraged me to survey public lands in proximity to the four incorporated communities: Ennis, Virginia City, Sheridan and Twin Bridges.”

State trust lands, said Jarvis, were historically set up to create an endowment for schools, are often used for grazing but could serve a new purpose in today’s housing crisis: Housing teachers. 

An example of successful land use for community benefit, Jarvis recalled, occurred around 20 years ago when Virginia City leased state land for a wastewater treatment plant. 

“I’m hoping we can ultimately identify a pilot project, an affordable housing pilot project in each of the four incorporated communities here in the near future,” he said, envisioning these initiatives as 2 to 3-year projects—a timeline he admits is optimistic.

To turn his vision into reality, Jarvis is collaborating with Trust Montana, led by Executive Director Dawn Conklin.

“Trust Montana is working across the State of Montana, and we’re a community land trust organization,” Conklin explained. “We see ourselves as the stewards of the land for the betterment of the community.”

Conklin shared details of a promising project currently underway in Deer Lodge—Beaumont Place—where Trust Montana is partnering with a for-profit developer to create community land trust homes. 

“We got to him and we said, ‘Would you consider holding out four or six of your homes to be community land trust homes?’” she recounted. Trust Montana will own the lots set aside by the developer, and the cost of the land will not be added to the sale price of each home. 

The collaboration allows Trust Montana to collect names of interested buyers making homeownership more attainable for those who might otherwise be priced out of the market.

“Trust Montana takes possession of the land so they own the home, we own the land, which guarantees that the subsidy stays with that home,” Conklin explained. This innovative approach helps maintain affordability for future buyers, and creates a system where the community land trust homes are sold to only income-qualified individuals.

Trust Montana depends on a mix of private donations and public grant funding, like what’s available through the state. 

“We'll determine if we can bring up to $90,000 in down payment assistance. And this money has come from the Montana Department of Commerce HOME Funds. And so now somebody is getting into a brand new home that the market rate is $280,000, which is what the developer will take away. Plus Montana's bringing $90,000. They're getting into a new home at $190,000,” explained Marxer. “So on their side, what happens is now it's what we call shared equity housing and they will be limited in the amount of equity that they can earn. So for Trust Montana, we just have a formula of 1.5% a year. And then when they go to sell that home, we will help to income qualify the next home buyer, making sure that this home is always hitting on that particular population” of Montanans currently priced out of home ownership.

Jarvis is enthusiastic about the potential for similar projects in Madison County, where he believes that utilizing public land for affordable housing could significantly benefit the local workforce. 

“We would love to find a way for some land to come free of charge that could then get developed,” Conklin added, echoing Jarvis’s sentiments. “Then Trust Montana could steward that land, making sure that it remains permanently affordable.”

The collaboration between Jarvis and Conklin represents a strategic move to address the pressing need for affordable housing in the region, particularly for those in essential professions who contribute to the local economy yet struggle to find suitable housing. 

“Again, your classic school teacher, your law enforcement officer, or your nurse at the local hospital who are making good money but not good enough to afford a $400,000-plus single-family home,” Jarvis pointed out.

Cody Marxer, the Madison County Planning Director, provided additional context on the challenges surrounding affordable housing. 

In a Sept. 6 email, Marxer noted that without zoning in place, it is difficult to incentivize developers to construct affordable housing and ensure that homes remain affordable after development.

“Development and construction, specifically infrastructure, are extremely expensive, so it’s difficult to pencil out ‘affordable’ housing for a developer,” Marxer explained. She also highlighted the community's resistance to affordable housing projects, which are often misconceived as low-income developments. 

“As much as everyone wants and needs services, which requires workforce-affordable housing, there is strong opposition to neighboring an ‘affordable’ housing development,” she added.

Marxer emphasized the importance of the current public engagement forums, where the public is invited to share its thoughts on how to best update the countywide growth policy. 

“The community survey and community forum feedback are crucial for determining what the residents’ concerns and goals are for Madison County,” she stated. If affordable housing is identified as a priority, it will influence the county’s land use regulations and planning documents. Also, with affordable housing in the revised Growth Policy document, Madison County becomes eligible for additional grant funding. 

Reflecting on the Gov. Greg Gianforte’s bipartisan housing task force, Marxer offered a mix of takeaways. 

“I support the intentions of the task force but their work, via 2023 bills and amended land use statute, have been challenging in the day-to-day application of land use planning and community development,” explained Marxer. “I often feel that lawmakers are a bit out of touch with the reality of how the laws are applied and administered on the ground. I support the intentions of cutting red tape and providing a more efficient, in terms of time and cost, process for development. But the reality in Madison County, specifically, is that by loosening development restrictions, as the 2023 legislative session did, we have lost the grip on resource availability and protections, and developers are still selling homes for prices that are unaffordable for the working class or families. Land use is lacking big-picture evaluation right now. I suspect balance will not return to land use in Montana until we run out of natural resources, such as water, which is both disappointing and irreversible.”