HELENA — This empty lot behind the Lithia dealership, on the northwest corner of Alice St. and Dorothy St., could be the future site of dozens of affordable apartments, after city commissioners on Monday, approved allocating funds from the affordable housing trust fund to kick-start this project.
The project is led by the United Housing Partners (UHP), whose mission is to build and preserve affordable housing across the United States.
Founder of UHP, Tyson O'Connell, grew up in Helena and has seen the housing shortage in the city continue to grow.
"It was a 36% rent increase since COVID, and there's a variety of factors that are causing that, but when you think about that, that means rents have gone up more than a third in the Helena market in the last short period of just three years. That's a big deal, and this is a market that we wanted to focus on and try to help out," O'Connell.
This isn't the first time O'Connell has created affordable housing in Helena.
About a year and a half ago, he helped complete the rehabilitation of the Fire Tower Apartments, another affordable housing complex.
"It's changed a lot in the last 25 years since I've been gone from Helena, and in the last, I think three years, it's had the largest rent increase in the state of Montana, according to the Washington Post study that was recently published, and I think it was the fifth largest in the nation," O'Connell.
The 1 million dollars from the Affordable Housing Trust Fund will be in the form of a construction loan to build the 45-unit complex of one, two, and three-bedroom units.
With 400 thousand of that becoming an 18-year loan after the term of the construction loan. The project is estimated to cost a total of more than 15 million dollars. Far exceeding the minimum 5-to-1 match required for trust fund financing.
"Helena has changed a lot since I moved away and I've been watching it. Both my brothers and my father still live in Helena, so I'm proud of the work that we do in communities all across the country, but when I can do it in my hometown of Helena and help address a need that needs to be addressed, it makes me even more proud," said O'Connell.
Construction for the Twin Creek Apartments could begin in September, with the completion of phase one in July of 2025.
