Government and Non-Profit Housing Partnerships in Teton County
The partnership between Teton County and the Town of Jackson and non-profit developer Habitat for Humanity is providing meaningful affordable housing at a price that sets a standard for all affordable housing projects to emulate.
Northern South Park
Last month, I met with leaders from Teton Habitat to learn more about their efforts to deliver affordable housing in Northern South Park (NSP). It’s no secret that I have expressed significant reservations about the development in NSP and voted against the Master Site Plan, so it was good to sit down with the Habitat team to discuss the “Habitat difference”.
I left the meeting encouraged and with two important understandings:
First, I am pleased that Habitat plans to deliver its share of affordable homes in NSP without seeking local taxpayer subsidies. That admirable commitment should be the standard for every NSP development partner. I encourage the other partners in the project to provide similar assurances.
Second, we dug into the public statements and financial projections from NSP partners that led me to conclude that Habitat and the JH Community Housing Trust (JHCHT) would need to raise $400 million in philanthropy in order to realize their joint commitment to providing deed-restricted housing in NSP. I will spare you, gentle reader, the details of the financial projections. If you are interested, email me or reach out to Habitat.
In short, I am pleased that Habitat plans to deliver 193 units (17 less than the approval) at well under both my $400 million projection and the $275 million projection cited by a project supporter. The starting point for my projection is a statement that Anne Creswell, executive director of JHCHT, made to the planning commission on January 8, 2024. Her projection did not account for the significant cost savings that Habitat brings – namely volunteer labor and favorable terms for capital.
Habitat’s preliminary projections demonstrate that public agencies and partnerships between public agencies and non-profit organizations can deliver affordable housing using philanthropy, favorable terms for capital, volunteerism, a condition of rezoning exchanging increased density for conveyance of land for workforce housing, and disciplined project economics.
That raises the question: If Habitat can build affordable housing in NSP without taxpayer subsidy and with realistic fundraising goals, why shouldn’t every development partner be held to equally high and transparent standards?
Teton Habitat’s model relies upon favorable terms for their funding, what is also called “socially motivated funding” or “socially motivated capital”). This reinforces my conviction that affordable housing projects in Teton County that rely upon public support (funds, land, regulatory support) should apply socially motivated funding to reduce the cost to buyers and tenants. Teton Habitat’s preliminary model for their homes in NSP anticipates a subsidy of $200,000 per unit. This translates to a projected philanthropic goal of just under $40 million for the 193 houses (that is in today’s dollars, an estimate that will undoubtedly increase with inflation over the life of the project).
I continue to think that the NSP development approval has serious flaws. Before the next phase of NSP moves forward, the community deserves clear answers to at least three concerns:
A transportation plan and cost share agreement that funds necessary investments to mitigate traffic congestion and address pedestrian and bicyclist safety, especially along High School Road and thar assures that the developer pays their fair share of the cost of the transportation investments that are necessary due to the new development.
A public commitment from the NSP partners disavowing the use of local taxpayer funds to subsidize the project, including the public investments that the development requires.
A public commitment from the NSP partners disavowing future efforts in the legislature to enact a new version of HB141, which would have eviscerated the modest concurrency requirements in the development approval between deed restricted housing and market housing.
My objections with the development plan for NSP have nothing to do with Teton Habitat. As shown in the Parkside partnership, I respect Habitat, their mission, their philanthropic approach, and their track record of delivering quality affordable housing. Based on the preliminary projections Habitat shared with me, their goals appear realistic. With a generous $15 million match from the Hughes Charitable Foundation and substantial commitments from their Board and other donors, Habitat has already made real progress toward realizing their fundraising goals. Habitat’s commitment to building more prosperous, vibrant communities and expanding access to safe and affordable homes is alive and well in the Tetons. My respect for and confidence in Habitat abides. We should emulate and support their approach. Please join Liz and me in supporting Teton Habitat at this link.
-Luther