VICTOR, Idaho — The Victor City Council voted 4-1 on March 13 to approve the design development plan and the ground lease agreement for the Sherman Park Project. The 90-unit housing development will create 55 units aimed at housing residents who fall in the 80-120% Area Median Income (AMI). Thirty-five of the units will be rented at market value.
The City of Victor is granting the developers a 99-year, zero-dollar lease for the Sherman Park Property, located at the corner of Baseline Road and Agate Avenue, valued at $2.5 million.
The affordability of the units has come into question as the approval process has unfolded, with many in the community questioning the rates for the 55 affordable units.
Councilmember Amy Ross voted against the development plan on March 13, noting that she is not against affordable housing projects, but felt that this project was not affordable and could end up serving Jackson more than Victor.
“I don’t really consider the 120[% AMI] affordable,” Ross said during the meeting. “If we take $2.5 million and divide it by the 80% and 100% AMI units, it is costing us $66,000 of city property, per affordable unit, and that is not okay with me.”
Following the city council’s decision, Buckrail spoke with Victor City Mayor Will Frohlich, City Administrator Jeremy Besbris and City Treasurer & Human Resources Jasmine Griffin about the affordability of the development.
According to Frohlich, the project isn’t aiming to be affordable for the lowest-income residents but targets the housing gap for residents who make 80-120% AMI, which is outlined below based on the number of people in a household.
Housing needs in Teton County, Idaho
“We can pretty confidently say that 50% of people that live/work here, make over 100% AMI.”
Jasmine Griffin, City Treasurer & Human Resources
According to the 2022 Teton Regional Housing Needs Assessment — which compiles the most recent data from Teton County, Idaho, Teton County, Wyoming, and Northern Lincoln County, Wyoming — the average household size in Teton County, Idaho, is about three people.
According to the study, over half of renters — about 51%— earn below 80% AMI.
Griffin discussed how other projects in the Valley, like the project at Driggs Depot, targeting residents who earn 30-60% AMI, are already in the process of filling the housing needs for that demographic of renters. The Sherman Park project, she said, is targeting residents who earn more money, but not enough to purchase homes at the market rate.
“We can pretty confidently say that 50% of people that live/work here, make over 100% AMI,” Griffin said.
Besbris explained that statistically speaking, in a random sample of households, there would likely be more households earning between 80 and 120% AMI compared to households earning between 30 and 60% of AMI. This is because the range from 80 to 120% of AMI covers a broader income spectrum and includes a larger portion of the population than the narrower range from 30 to 60% of AMI.
Griffin did discuss the flaws that come with setting rental rates based on AMI. “If you look at some entry-level positions in the county, you might see that a single person might need to pay more than 30% [of their income] for their rent,” Griffin said. “But that’s not typical.”
Besbris also explained that the market rate units included in the project are necessary to create the affordable units. For projects targeting incomes above 80% AMI, there isn’t a clear subsidy source.
“You can’t cover the cost of the building with just rents,” Besbris said. “The market rentals are used to buoy that.”
The project did receive a $4 million grant, which requires at least 23 units to be set at 80% AMI.
Mayor Frohlich also pointed out that by having a large number of units allocated to households earning 80% AMI, 100% AMI and 120% AMI, tenants can “step up” to another income level without having to move out of the development. He equated the development to being a ladder to the free market for some tenants.
“People can grow in their careers,” Frohlich said. “People can start at 80% AMI and make more money and move up to 120% [AMI] and then move into the free market.”
“We did reach out to the largest employers in the Valley and provided all the information to them and they all supported it,” Frohlich said. “That was very reassuring; we wanted to have a community buy-in.”
