From the Field Montana Advocates Clear Important First Hurdle to Pass Major Housing Legislation in 2019

The Montana Housing Coalition (MHC) will head into 2019 with a packed “to-do” list now that three significant housing proposals are set to be introduced with bi-partisan support. The Local Government Interim Committee (LGIC) considered draft legislation for expanding affordable, decent, accessible homes in Montana, and passed all MHC-backed measures during their meeting on July 12. The three bi-partisan bills will be introduced early in the upcoming legislative session, a testament to the growing effectiveness of MHC, which only formally organized in 2016. 

All three bills focus on financing tools for housing production. The proposals would establish a Workforce Housing Tax Credit program similar to the federal and other state low income housing tax credit programs, create a loan program through the Coal Severance Tax Trust Fund that could be used to support gap-financing for housing development, and allow local governments to apply for both Treasure State Endowment and Big Sky Development Grant funds to produce infrastructure that can facilitate the construction of affordable homes.

Under the tax credit proposal, the maximum aggregate amount of financing support each year would be $8.5 million. The new gap financing loan program would provide $15 million to developers, and the bill stipulates that this new resource must not replace other financing that might be available. The loan program can support housing development for both low and moderate income households with incomes up to 95% of the area median income, despite that moderate income households in Montana have relatively low cost-burden rates at just 9%.  Changes to the Treasure State Endowment and Big Sky Economic Development Grant programs would give local governments another tool to help fund infrastructure projects that contribute directly to reducing housing development costs.

The strong progress working with the LGIC began at a March panel discussion that included MHC leaders and real estate professionals exploring the challenges faced by developers of homes for a range of housing options needed in Montana. During the panel discussion, participants emphasized that housing tax credits can leverage capital and should be thought of as an investment in infrastructure rather than an expense to the state. The event focused on the rising costs for both renters and homeowners, including a discussion of housing cost burdens which now affect 46% of Missoula renters. The LGIC encouraged MHC to partner with state Representative Adam Hertz (R-Missoula) to develop new legislative solutions.

Heather O’Loughlin from the Montana Budget and Policy Center (BPC) joined MHC board members at the July 12 LGIC meeting to advocate for the passage of all three bills. Ms. O’Loughlin shared data from Montana BPC’s recent State and Local Strategies to Improve Housing Affordability report that includes considerable data from both NLIHC and the Center on Budget and Policy Priorities. The report examines how state low income housing tax credits have worked throughout the country and shows the impact these investments can produce in states like Montana.

“[The year] 2019 can be a turning point for Montanans who need homes that are affordable,” said Sheila Rice, president of MHC. “As an example, local businesses have pointed to a need for more workforce housing to help grow our economy, and our growing population of seniors is looking for solutions to their housing needs.  These bills give the state more options to invest in housing by leveraging both government and the private sector resources.”

For more information about advocacy efforts in Montana, contact Peggy Trenk, executive director at MHC, at: [email protected]