The Montana Department of Commerce announced today more than $22.6 million in federal housing tax credits will be allocated to developments in four communities in Montana to preserve or build 247 new affordable homes.
“Access to affordable homes is vital for our communities to grow and prosper. These homes will provide a safe place to live and needed stability for many Montanans in communities across the state,” Commerce Director Scott Osterman said. “Working alongside our statewide housing partners, we will continue to support the development and preservation of safe and affordable homes for Montana families and individuals.”
On Monday, the Montana Board of Housing approved tax credits for four affordable developments. Federal housing tax credits allow developers to borrow less money for construction and pass those savings along to families and individuals through lower rent. This year, developers submitted housing tax credit applications for eight distinct projects requesting more than $46.5 million to build or rehabilitate homes.
The Board has allocated the competitive federal housing tax credits to the following communities:
Billings – Tapestry Apartments will receive $6,200,000 to build 26 new homes for families and individuals.
Dillon – Bicentennial Apartments will receive $5,590,170 to rehabilitate and preserve 58 existing homes for seniors.
Great Falls – Baatz Apartments will receive $6,100,000 to build 25 new homes for families and individuals.
Kalispell – Junegrass Place will receive $4,780,000 to build 24 new homes for families and individuals. This project is also leveraging non-competitive private activity bonds to construct an additional 114 units.
“Over the last three years, the Montana Board of Housing received over $250 million in housing tax credit requests, representing nearly 50 critically needed affordable housing developments across the state,” said Bruce Posey, Board Vice Chair. “Each year, the Board invites 8 projects to submit a full application and is faced with difficult decisions since we are only able to award four or five. In reality, all of these projects are needed.”
The Montana Board of Housing also passed a resolution to move over $6.1 million in remaining federal housing tax credits to a subsequent board meeting. It is anticipated the Board will consider awards or allocations to projects not awarded credits at Monday’s meeting, or to one or more projects previously awarded credits but not yet placed in service at the November 15, 2021 meeting.
The Montana Board of Housing is part of the Montana Department of Commerce. Federal housing tax credits flow through the state agency and fund the construction or rehabilitation of about 230 homes each year. This supports the creation an estimated 520 jobs, about $23 million in local wages, and more than $2 million in new taxes and revenues for local governments.