Montana Legislature approves HB 924 for housing loans and veterans' mortgage program

The Montana Legislature convened on March 29, 2025, to introduce House Bill 924, a significant piece of legislation aimed at enhancing housing opportunities for low- and moderate-income residents in the state. The bill proposes the establishment of a housing infrastructure revolving loan fund, utilizing resources from the coal tax trust fund to support the development and preservation of affordable housing projects.

Key provisions of House Bill 924 include the stipulation that loans must be secured in the first lien position and cannot exceed 95% of total development costs. The bill mandates a minimum interest rate of 0.5% below the current coal trust fund investment performance, ensuring that the loans remain financially viable for developers while also generating returns for the trust fund. Notably, projects funded through this initiative will be subject to property taxes, with an exception for those located on tribal lands.

The bill also outlines the creation of a veterans' home loan mortgage program, which will allocate $50 million from the coal tax trust fund specifically for first-time home-buying veterans. This program aims to provide financial assistance to those who have served in the military, facilitating their transition into homeownership.

During the legislative discussions, there were notable debates regarding the potential economic implications of the bill. Proponents argue that the initiative will stimulate local economies by increasing the availability of affordable housing, thereby attracting new residents and businesses. Critics, however, raised concerns about the sustainability of using coal tax revenues for housing initiatives, given the declining coal industry and its impact on future funding.

As the bill progresses through the legislative process, its significance is underscored by the ongoing housing crisis in Montana, where many residents struggle to find affordable living options. Experts suggest that if passed, House Bill 924 could serve as a model for other states facing similar challenges, potentially reshaping the landscape of affordable housing in Montana and beyond.

In conclusion, House Bill 924 represents a proactive approach by the Montana Legislature to address pressing housing needs while also supporting veterans. The bill's fate remains uncertain as it moves through further legislative scrutiny, but its implications for the state's housing market and economic development are poised to be substantial.