V2N38: BCHA-The More You Look, The Worse It Is
1. They have lost control over their budget. 2. They intentionally trap people in their housing web.
The packet for the Blaine County Housing Authority (BCHA) meeting on July 16 reinforces what I have been saying about the self-licking ice cream cone.
They provide an update on June activities organized by their five priorities. Guess which priority is last? Actual housing provision (see p. 5 of the packet).
The Budget Spiral of BCHA
As I noted in a previous post, for FY2026, BCHA plans to spend almost $1 million on staffing and consultants (see p. 53 of the Ketchum budget book), making it, by far, the largest department of the City of Ketchum. I refer to it as a department of the City of Ketchum, as the City provides the staff, and Ketchum's director serves as the executive director of BCHA.
In the BCHA package, they provide an update on the FY2025 budget (October 24 - June 25). BCHA is spending ahead of budget on almost every item. If BCHA were a real company with a real board of directors, the July 16 meeting would be a tough meeting for the CEO. A real board would hold the CEO accountable for failing to meet financial expectations and for being a poor steward of stakeholder resources. That is unlikely to happen in this board, which is stacked with people I consider to be patsies. And what does it matter? She receives more money from Ketchum to cover any gaps. Indeed, the worse BCHA manages itself, the more money it is likely to receive from Ketchum's Council—the Council seems to buy into the black hole, without requiring accountability.
While it is called the Blaine County Housing Authority, the name is more aspirational than descriptive. Blaine County has not yet paid them its relatively small contribution for FY25 ($154,000). No other city in Blaine County contributes any money to BCHA. In my opinion, they are too smart to participate in this bureaucratic mess. Plus, there is a free rider incentive: they get Ketchum taxpayers to subsidize housing issues throughout the County—who doesn’t like free money from someone else?
The Trap of BCHA Housing
This packet contains a significant amount of material on how to limit housing appreciation to individuals who purchase BCHA deed-restricted units. This is a way BCHA traps people in public housing. They limit the amount of appreciation an owner of a deed-restricted unit can benefit from when they sell it. In other words, BCHA limits the amount of equity a homeowner can create through ownership of a deed-restricted unit.
This process almost guarantees that a deed-restricted unit owner can’t escape BCHA housing—BCHA won’t let them build equity. Indeed, in the packet materials, the consultant’s presentation discusses how this form of housing isn’t home ownership.
What’s an Alternative to BCHA?
Save the million dollars and get the City of Ketchum out of the public housing business. Instead of competing with them, work with local non-profits ARCH and WRCHT to provide true workforce housing rather than just low-income housing.
I expect defunding of BCHA to be a top priority for the next Ketchum City Council. The election that can fix this is in November.
It keeps getting worse: https://www.mtexpress.com/news/ketchum/workers-community-housing-officials-wrestle-with-high-hoa-fees/article_cd336228-8fb3-40a4-b1a7-115e5219c6fc.html
BCHA's mission is to provide affordable housing. Its #1 priority, according to its director, is to preserve affordable housing. But what about the people who live in it?
BCHA's failure on HOA fees will force some BCHA owners to sell-->if they can even find a buyer. That is a big "if." BCHA's advice ranges from "get a roommate" to "take out a loan" to "apply for help from BCCF." None of those suggestions are helpful to someone who can't afford the HOA fees or assessments.
BCHA has even purchased workforce housing in Ketchum and evicted the workers who live in it (2nd Street in Ketchum).
This is an organization that claims to be focused on one thing (affordable housing for local workers), yet devotes most of its resources to another goal: building low-income housing projects on highly valuable land using a financing structure that excludes teachers, healthcare workers, and first responders from eligibility.
Meanwhile, according to page 53 of the Ketchum Budget Book, they are requesting $ 975,000 for staffing and consultants. That doesn't include the free PR support BCHA receives from Ketchum.
Let's...not.
Let's remove the City of Ketchum from the housing development business and leverage partnerships with local housing nonprofits, such as ARCH and WRCHT. We will obtain more suitable housing at a lower cost on a faster timetable.
Excellent idea and analysis