POCATELLO — A $6 million affordable senior housing project near Sacajawea Park is moving forward, and its leaders say construction could break ground as early as spring 2027 if key federal funding comes through in the coming months.
NeighborWorks Pocatello is teaming up with Desert Ridge Investments on the project. Around 85 percent of the cost is expected to come from a mix of federal housing grants and tax breaks aimed at building homes for lower-income residents. The remainder, roughly 15 percent, would be covered by a standard bank loan.
“We have this Jenga block tower of arrangements that will hopefully hold this project together,” said Peter Taylor, executive director of NeighborWorks Pocatello.
The tax credit program, known as the Low Income Housing Tax Credit, works like a rebate on federal taxes for developers who build housing for lower-income residents. NeighborWorks Pocatello is submitting its application for that credit this week and expects to learn by December whether it and the Federal Home Loan Bank funding have come through. If the application is denied, the project’s expected completion would likely be pushed back nearly a year.
The project’s land came together through a separate arrangement with the city. Taylor said the Pocatello City Council could not offer a direct cash contribution to the project but agreed to lease two acres of a 19-acre parcel near Sacajawea Park to NeighborWorks for 99 years at $1 a year, a contribution that satisfied certain requirements tied to the tax credit funding.
The council retains title to the land. City staff and NeighborWorks examined several potential sites, including a parcel near the planned community gardens project, buts ultimately settled on the site near the park.
The City Council recently approved a resolution formalizing the lease between the city and NeighborWorks Pocatello, clearing the way for the group and its partners to develop and run the project. Ryan Hackett of Desert Ridge Investments served as the lead applicant on the project during a recent council meeting.
Taylor was clear that the development will sit near, not within, Sacajawea Park, addressing concerns raised by some residents. The site borders existing housing at the park’s northern edge and lies well away from the area officially mapped as flood-prone. Taylor also said the project will follow standard construction protocols to prevent contamination or flooding.
The development is modeled as a small-scale version of NeighborWorks’ existing Park Meadows project, with small apartments geared toward senior and needs-based affordable housing. Most units will be reserved for residents 55 or older, with some available to younger residents who meet disability criteria.
All tenants must earn no more than half of the typical income for the area, with many likely applicants relying on Social Security. Rents will be similar to those at Park Meadows.
If all goes according to plan and the funding application is approved in December, the project would still need to follow standard City Council processes before construction begins. Taylor said he does not anticipate significant obstacles.
Taylor, who took the helm of NeighborWorks Pocatello only weeks ago, said he was impressed by how the community has handled contentious debates over the project.
“I was just really pleased and just proud of this community,” Taylor said. “The tone of the debate was very civil and respectful, which I think just speaks volumes about Pocatello.”