The city of Ketchum is applying for a $5 million federal grant to boost affordable housing development.
The Department of Housing and Urban Development's new $85 million "Pathways to Removing Obstacles to Housing" funding opportunity is for cities that have severe housing needs and local barriers to affordable housing production and preservation.
In Ketchum, those obstacles include being surrounded by public lands, declines in residential construction and units rented out long-term, and not-in-my-backyard (NIMBY) sentiments, said city Housing Fellow Rian Rooney.
"An inconsistent political appetite has challenged our ability to develop low-income, affordable, community housing, historically," he said, noting the reception to housing efforts has changed since the pandemic exacerbated the existing affordability trends.
Ketchum would use about $4.6 million for an affordable housing gap fund to bridge the cost of development and affordable rental prices and purchase rates. Examples of projects that this fund could go toward include buying a local hotel or an assisted living center for affordable housing, or building apartments on city-owned land, an effort already underway.
The rest of the funds would help support the city's comprehensive plan update and its engagement with the public throughout the process.
The city said the $5 million grant could produce up to 240 affordable units. It anticipates hearing back on the application at the end of Jan. 2024.
Find reporter Rachel Cohen on Twitter @racheld_cohen
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