Midtown housing project plans emerge, include 211 affordable units
Martin Kidston
(Missoula Current) By this time next year, United Housing Partners will begin construction on an $80 million housing project, one that will deliver more than 200 units of permanently affordable housing in the Midtown district.
Franklin Crossing – a collaboration between United Housing Partners, the Missoula Housing Authority and the City of Missoula – will rent below the market rate and help fill a dire need for affordable housing.
“There's a substantial number of homes in this project that will serve people living on small means,” said Missoula Mayor Andrea Davis. “The city has committed to being a strong partner in our community to address a number of affordability goals. Franklin Crossing directly supports the city's housing strategy.”
The project's capital stack includes as many as 17 funding sources, punctuating the complexity in funding and building affordable housing in an increasingly unaffordable market.
Among the funding sources, the city donated the land to the project and the Missoula Redevelopment Agency contributed $9.7 million to help fund the necessary infrastructure and some construction costs.
United Housing Partners and the Missoula Housing Authority also applied for and received Low Income Housing Tax Credits from the state, along with the state's Go Housing Fund. Other sources include the Missoula Impact Fund, the city's Housing Trust Fund and tax-exempt bonds.
Without any one of the funding sources, the project may not have moved forward, according to Tyson O'Connell with United Housing Partners.
“To make a project like this happen, we have to do that,” said O'Connell, a former University of Montana law student and Missoula resident. “We wanted to make Franklin Crossing large to maximize the public dollars the city has put into it. If you're going to make such a significant commitment, we wanted to deliver a very large and impactful project.”
The development, eyed for roughly seven acres on Johnson Street, will include 244 total homes, including 211 rental units reserved for those making between 30% and 70% of the area median income.
The apartments will include 92 one-bedroom units, 87 two-bedroom units and 32 three-bedroom units. With the subsidies, a one-bedroom will range from $393 to $1,205 while a two-bedroom will range from $522 to $1,596.
In comparison, the market rate for a one-bedroom unit in Missoula is roughly $1,695 while a two-bedroom unit fetches $2,195.
“Those 30% units are so hard to develop in new projects,” said O'Connell. “The only reason why we're developing those is because of our partnership with MHA and the city. There's a commitment to building housing now. That is good leadership and forward-thinking leadership.”
Another housing project on city-owned land is also underway at nearby Southgate Crossing. Once completed, it will also deliver roughly 250 housing units in the Midtown area.
Plans created for the district envisioned its suitability for urban infill. While that was slow in coming, the two projects will deliver roughly 500 housing units, both through a public-private partnership.
Construction for Franklin Commons is set to start next July with a move-in date set for October 2028. Along with affordable housing, housing experts believe it will also help address the city's low vacancy rate, which is expected to linger around 3% in the near future.
“We recognize that we're chipping away at that low vacancy rate,” said Sam Oliver, director of the Missoula Housing Authority. “It takes very strong relationships with trusted partners. We seek out the best developer partners in the region. This is a very aggressive timeline where all parties had to be nimble. I believe we really hit a home run with all these partners on board.”