Montana Board of Housing Approves Tax Credits for Development of Affordable Housing

Credits will leverage more than $30 million in construction investment

On Monday April 7, 2008 the Montana Board of Housing approved Hamilton, Lame Deer, Lewistown, Kalispell, Missoula, and White Sulphur Springs as applicants for the first round of the 2008 Tax Credit Allocation Process. The federal tax credits help finance the creation of affordable housing for low to moderate income families across Montana.

“The Tax Credit Allocation Process is a valuable financing tool that helps create affordable housing in the communities that need it most. Many Montana families and seniors are desperate for affordable housing, and these credits will help give them a place to call home,” said Governor Brian Schweitzer.

“The enormous leveraging power of these tax credits encourage building investment in Montana,” said Anthony Preite, director of the Montana Department of Commerce. “The credits help create more than just homes, they create good paying jobs and revenue for local governments.”

The State of Montana had $2.3 million in federal tax credits for 2008 to allocate to projects which build or rehabilitate rental housing for low and moderate income Montanans. These tax credits are increasingly valuable as a stimulant to the economy of communities across Montana and will provide affordable housing at a time when the need is critical.

Montana benefits from the generation of approximately $30 million in construction expenditures each year, in addition to money spent on building, many jobs are created in construction, property management and property maintenance. Property taxes or payment in lieu of taxes are also a direct benefit to the local governments.

The projects in Hamilton, Lame Deer, Lewistown, Kalispell, Missoula, and White Sulphur Springs are for new construction and acquisition rehabilitation.

* In Hamilton, the Mountain View III proposal received $581,250 in tax credits for the construction of 46 units. The developer is Summit Housing Group of Missoula.
* The rehabilitation proposal of the Shoulder Blade Complex in Lame Deer received $394,800 in tax credits to revitalize the Northern Cheyenne’s senior housing.
* The Lewistown Community Development Corporation received $41,000 to add to the $259,000 received last year for the Ouellette Place project. This project includes plans to rehabilitate the nurse’s quarters in the old hospital, as well as new construction of a separate building to also be used for housing.
* Kalispell received $580,000 for construction of the Spring Creek Apartments south of Highway 2 on Apple Way Drive, which will add 33 affordable rental units to the community.
* In Missoula, the Housing Authority received over $474,000 to begin construction of Phase I of the Garden District’s affordable housing complex, located on Russell Street at the old Intermountain Lumber Company site.
* In White Sulphur Springs, the Meagher County Senior Center received $237,300 in tax credits to build Castle Mountain Apartments which will provide ten new affordable apartments for seniors.

There were three other projects submitted, totaling $18 million in construction costs, that were not allocated credits. Competition is strong because the allocation of tax credits greatly reduces the amount of additional equity required to complete a proposed project and there are always projects that could be funded if Montana had additional credits. Established under Section 42 of the Internal Code of 1986, this is the twenty-second year that Montana has allocated federal tax credits. Go to housing.mt.gov to learn more about the Low Income Housing Tax Credits and the application process.

For information on this and other multifamily programs, you may also contact the Board of Housing at 406-841-2840.