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Missoula Launches Bold Policy to Boost Workforce Housing Supply Allowing TIF funds to be Used for Infrastructure Improvements

Missoula’s new workforce housing policy aims to tackle a decades-long affordability crisis.
Missoula city officials and County Commissioners have launched measures to increase affordable housing supply, addressing a structural shortage that has driven many residents out. This effort marks a significant policy shift toward targeted development and financing mechanisms.
The city is developing its own land to add housing stock, while the county approved a workforce housing policy last Thursday enabling tax-increment financing for infrastructure supporting affordable homes. This policy explicitly bars TIF funds from luxury housing projects, setting guardrails on size, density, and finishes to keep homes affordable, according to Commissioner Josh Slotnick. Average rents near $1,400 contrast with a median household income around $76,000, underscoring the affordability gap. Local experts and the Missoula Organization of Realtors provide the data framing this long-standing crisis.
This policy forms part of a broader 50-year development plan for the Wye area, indicating a long-term commitment to housing solutions.
Though the measures are focused within Missoula, similar Montana communities facing rising housing costs might find lessons in Missoula’s approach. The interplay of public land use, targeted financing, and regulatory guardrails could influence regional housing strategies amid evolving economic pressures.



