Montana-made Housing Policy: Credits Don't Stretch Far Enough
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In 2019, the Montana Board of Housing was able to fund only six out of 16 eligible applications for projects using the 9% housing credits. Ten good housing developments will not be built because of the scarcity of Federal Housing Tax Credits. Many other states supplement the Federal Housing Tax Credits with a state tax credits or other state funding, which allows greater use of 4% tax credits and creates more homes and apartments that working families, seniors, and residents with permanent disabilities can afford to rent or buy. The need for more housing options, such as state funding to supplement 4% housing credits, is demonstrated by comments from letters of support for tax credit applications.
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Rent burdened households experience compounding problems of high transportation costs and housing uncertainty when they can’t live in the communities in which they work. Employers also faced difficulty recruiting for positions because of the scarce housing.”
- Letter of support
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The Interim Local Government Committee, a bi-partisan group of Montana Senators and House members, voted to unanimously move housing bills forward to the 2019 legislative session and is working with the Coalition on bills for the 2021 session. The bills provide a multi-pronged approach to solving Montana's housing problems.
>> The Coal Tax Homes Loan Fund was enacted by the 2019 Legislature, setting aside $15 million in Coal Tax Trust funds to be loaned at low interest rates for the development of more homes and apartments. In just eight months, nearly the entire $15 million was loaned to eight developments with of a total of 252 homes, mostly in rural Montana. The Coalition will be asking the Legislature to increase the Coal Tax Homes Loan Fund in the 2021 session. >> The Workforce Housing Tax Credit Act was designed to create State Housing Tax Credits, which would bring more private investment and federal housing funds to Montana to create more homes and apartments. Although not enacted, the bill received much support and interest from both sides of the aisle. The Coalition intends to reintroduce the bill in the 2021 session. |
Seniors are cutting back on the other important necessities, and many are opting to stay in aging homes in desperate need of repairs and maintenance.” |