The Billings City Council voted unanimously (with one recusal) on Oct. 13 to approve $1,545,000 in federal HOME and Community Development Block Grant (CDBG) funds to help finance LB Lofts, a 101-unit affordable rental development to be built in the Billings Heights.

The funding package includes $1.4 million in HOME funds and $145,000 in CDBG funds. Jordan Langton (who goes by Jay), housing staff for the city, told the council the loan would be structured as a cash‑flow reimbursement, secured by deed restrictions, restrictive covenants and a promissory note. Construction is expected to begin in May 2026 with occupancy targeted for late 2027.

Why it matters: Council and the community pressed for clarity about the project’s viability, contingency funding and the condition of stored modular building components (“pods”) that the developer plans to reuse. The city’s contribution is a small portion of the roughly $25,000,000 total project budget but important gap financing for the tax‑credit‑backed deal.

Homefront (owner/manager) and Homeward (developer) presented the project. Homefront’s Patty Webster and Heather McMylan of Homeward described a 101‑unit project of mostly two‑bedroom, two‑bath units with six units set aside as home‑assisted units. The applicant said roughly 38% of the units will target households earning 31–50% of area median income (AMI) and the remainder 51–80% AMI.

Dan Brooks of the Billings Chamber urged support during public comment, citing a growing community need for affordable units and safety benefits from added residents in the area. “The need for the additional supply, and the safety benefits, we encourage your support,” Brooks told council.

Council members asked detailed questions about the reused modular components stored on site, pest control, weatherproofing, and contingency funding should some pods be unusable. Webster said the developer already owns extra pods and has budgeted contingencies to replace damaged materials if necessary: “We have contingency funds if necessary and also, plans in place if there’s partial placements of those pods,” she said. McMylan described recent market volatility for tax‑credit equity and said securing a general contractor in the next three months was critical to the timeline.

Council deliberations and outcome: Council member Bresham made the motion to approve the HOME/CDBG funding as recommended by the Community Development Board; the motion was seconded and passed unanimously with the exception of Council member Gulick, who recused himself because his firm is the project architect and did not participate in the discussion or vote. The motion authorized the loans and directed staff to finalize the legal documents and conditions described in the staff report.

Clarifying details: The staff memo lists the city request as $1,545,000 against a project budget of about $25,000,000. The applicant explained the figure is applied across the 101 units; the per‑unit cost cited in prior paperwork reflected bifurcated accounting between tax‑credit units and 4%/9% credit treatments. The pods have already been purchased, according to presenters, and the property owner donated the land to the project.

What’s next: City legal has reviewed draft agreements; the loans will not be funded until the project has met the financing contingencies and the developer has contracts in place. Presenters said construction should not start until all major financing and a general contractor are secured.

Votes at a glance: Motion to approve HOME/CDBG funding to Homeward and Homefront — mover: Council member Bresham; second: Council member Bernice; outcome: approved; recusal: Council member Gulick (did not participate).