Commerce Announces $25 Million to Develop Affordable Rental Homes in 14 Montana Communities

Fire Tower Apartments in Helena Montana HELENA – The Montana Department of Commerce announced today more than $25 million in federal funding has been allocated to 14 Montana communities to rehabilitate, preserve, or construct more than 945 affordable rental homes.

“As Montana’s economy continues to thrive, it is crucial that our workers and their families have a place to call home," Commerce Director Scott Osterman said. “With multiple tools available to the state, we will continue to work alongside our housing partners to provide quality, affordable homes for our friends and neighbors across Montana.”

In October, the Montana Board of Housing (MBOH) allocated $22.6 million in federal housing tax credits to four affordable rental properties, leaving additional leftover credits that were not allocated. On November 15, the Board allocated those additional housing tax credits to:

“Big Sky Community Housing Trust is thrilled to be the recipient of the 2021 Low Income Housing Tax Credit Award for our RiverView Apartments project. We appreciate the confidence expressed by MBOH in making this award, which will help Big Sky solve its urgent and critical shortage of workforce housing,” said Laura Seyfang, Executive Director of the Big Sky Community Housing Trust.

In addition, Commerce’s Montana Housing recently allocated Housing Trust Fund (HTF) grant funding, HOME Investment Partnerships Program grant funding, and American Rescue Plan Act (ARPA) State Fiscal Recovery gap financing funding to:

“Homeword and NeighborWorks Great Falls are thrilled to have received the Housing Trust Fund and HOME Investment Partnerships Program grant awards. The grant dollars will make this project possible because we’re providing permanent supportive homes for people experiencing homelessness,” said Andrea Davis, Homeword’s Executive Director.

Each year, the Montana Department of Commerce receives and administers $6 million of federal funds from the U.S. Department of Housing and Urban Development (HUD) for HTF and HOME Investment Partnerships Program grants to create affordable homes in Montana.

Federal Housing Tax Credits are available under Section 42 of the Internal Revenue Code. Each fall, the Montana Board of Housing votes on the final allocation of Montana’s housing tax credits for the construction or preservation of affordable homes.

In addition, Montana Housing recently set aside $15,000,000 of ARPA funding to provide critical gap financing for affordable home projects experiencing significant development cost increases due to COVID-19 related worker shortages, supply chain disruptions, and price escalations in key building materials like lumber. The funds were recommended for this use by the ARPA Economic Transformation and Stabilization, and Workforce Development Advisory Commission established under House Bill 632; the final allocation was approved by Governor Gianforte.

Tags: Montana Housing and Montana Board of Housing