HELENA, Mont. – The Montana Department of Commerce recently published an application for the U.S. Department of Housing and Urban Development Pathways to Removing Obstacles to Housing program, in partnership with the Montana League of Cities and Towns. The PRO Housing grant program aims to reduce barriers to affordable housing production by helping local communities address infrastructure challenges and land use regulations.
“Montana, much like the nation, is facing a housing crisis. Rising inflation and a lack of housing inventory make it hard on low to moderate income households. The HUD PRO Housing program is a great opportunity to make transformational changes in how housing can look in Montana,” said Paul Green, Director of the Montana Department of Commerce.
Commerce is applying for a $7 million grant which will be used to assist the communities subject to Montana’s Land Use Planning Act in implementing the requirements in the Act and to create programs and tools that communities statewide can access to further incentivize affordable housing development.
The implementation of the Act by the 11 Montana LUPA communities, and the modeling of pilot housing incentive programs at the state, will have enact transformational change across the state in seven ways.
For the first time, Montana’s fastest-growing areas will quantify the number of housing units needed to house its projected population and incorporate those numbers into its comprehensive planning documents. Prior to implementation of the Act, housing needs were not required to be quantified and not required to be incorporated into land use plans.
For the first time, Montana’s fastest-growing areas will be required to zone to allow, by right, the number of housing units needed to house its projected population over the next 20 years. This single statutory change will ensure that the regulations in these communities are not the barrier to developing the minimum number of units necessary to house its projected populations.
As part of their zoning code update necessary to implement the Act, Montana’s fastest growing areas will adopt at least five zoning reforms from a list of 14 statutory reforms that will lead to the development of more affordable housing.
With implementation of the Act, all development proposed in substantial compliance with the zoning for a site will be administratively reviewed and approved with no additional public comment, hearings or discretionary review.
By demonstrating how to implement the Act and the success of this new development review framework, these 11 Montana LUPA communities will provide a model for encouraging other Montana jurisdictions to implement the Act and transform land use planning, reform zoning and streamline housing development in additional communities.
New or expanded incentives for affordable housing developers, such as providing lower interest rate loans for new construction or preservation of affordable housing, innovative home construction methods or improved infrastructure or infill development.
New tools and training to assist affordable housing developers and nonprofit organizations with affordable housing development.
As part of its application process, the Montana Department of Commerce will host a public hearing on Oct. 9, 2024, at 11:30 a.m. that will be held via Zoom and in person regarding a Notice of Funding Opportunity for the HUD PRO Housing program.
For more information about the PRO Housing program and to attend the public hearing, visit commerce.mt.gov.
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