Montana Legislature allocates $50M for veterans' home loan program

Under the bright lights of the Montana State Capitol, lawmakers gathered on April 3, 2025, to discuss a pivotal piece of legislation: House Bill 924. This bill, aimed at addressing the pressing need for affordable housing in Montana, proposes a new funding mechanism through the state’s coal tax trust fund to support multifamily rental housing projects for low- and moderate-income families.

At the heart of House Bill 924 is a commitment to provide loans for housing projects that meet specific criteria. The bill stipulates that these loans must cover up to 95% of total development costs and be secured in the first lien position, ensuring that the state’s investment is protected. Notably, the loans will carry a minimum interest rate set at 0.5% below the current performance of the coal trust fund, making them an attractive option for developers looking to create affordable housing options.

The bill also includes provisions that require funded projects to be subject to property taxes, with an exception for those located on tribal lands. This aspect has sparked some debate among lawmakers, as it raises questions about the financial burden on developers and the potential impact on housing affordability. Additionally, the legislation emphasizes that funds from the coal tax trust cannot replace existing funding sources, ensuring that the new initiative complements rather than undermines current housing efforts.

As discussions unfolded, some legislators voiced concerns about the long-term sustainability of relying on coal tax revenues, especially in light of shifting energy policies and the state’s commitment to reducing carbon emissions. Critics argue that while the bill addresses immediate housing needs, it may not be a viable solution in the long run if coal revenues decline.

Supporters, however, highlight the urgency of the housing crisis in Montana, where rising rents and stagnant wages have left many families struggling to find affordable places to live. They argue that House Bill 924 represents a crucial step toward alleviating this crisis, providing much-needed resources to developers willing to invest in low-income housing.

The implications of this bill extend beyond just housing; they touch on broader economic and social issues. By facilitating the development of affordable housing, the state aims to foster community stability and support economic growth, as access to affordable housing is often linked to workforce retention and overall quality of life.

As the legislative session progresses, the fate of House Bill 924 remains uncertain. With ongoing debates and potential amendments on the horizon, stakeholders from various sectors will be watching closely to see how this bill evolves and what it ultimately means for Montana’s housing landscape. The outcome could set a precedent for how the state addresses housing affordability in the years to come, making it a critical issue for both lawmakers and residents alike.