The Billings City Council on Oct. 13 approved $1,545,000 in federal HOME and Community Development Block Grant (CDBG) funds to help finance LB Lofts, a 101-unit affordable rental project to be developed by Homeward and owned and operated by Homefront. The motion passed with full support of voting members; Council Member Gulick recused and did not participate.

City housing staff presented the request and said the award would be structured as a loan payable by cash-flow reimbursement and secured by a deed restriction, restrictive covenants and a promissory note. “The funding being sought is $1,400,000 in HOME investment partnership funding and $145,000 in community development block grant funding. The total being requested is $1,545,000,” said Jordan Langton, who presented the funding request for the city.

The council’s Community Development Board recommended approval of the city contribution. Project partners said the money is gap financing alongside tax-credit equity and other sources that together produce a project budget just over $25,000,000. “These funds are critical gap financing for the project,” said Heather McMillan of Homeward.

Why it matters: LB Lofts would add 101 two‑bed, two‑bath affordable rental units near Soo Lane and Twin Oaks Drive in the Billings Heights, including six units described as “home assisted.” Presenters said 38% of the units will be restricted to households at 31–50% of area median income (AMI) and the remaining 62% to households at 51–80% AMI. Construction was described as tentatively scheduled to begin May 2026 with a target completion and lease-up in December 2027.

Council members and members of the public asked detailed questions about stored prefabricated building “pods” that will be reused in construction, pest control and contingency planning for damaged materials. Patty Webster of Homefront said the pods are wrapped and being monitored and that contingency funds and 11 extra pods are available if some components require replacement. City staff said the city’s legal department has reviewed draft agreements and that final disbursement of city funds will await execution of required contracts and confirmation of other funding sources.

Motion and vote: Council Member Brescia moved to approve the HOME and CDBG funding to Homeward and Homefront as recommended by the Community Development Board; the motion was seconded and later passed with all voting members in favor and one recusal. The council record notes the developer’s funding and project contingency timelines will be reviewed as the project advances and that no city funds will be released until required conditions and contracts are in place.

The council asked that staff and the developers provide status updates during the next several months as the team seeks a general contractor and finalizes equity and lending elements that affect overall project viability.

Ending: Council members expressed broad support for the project’s goals to expand affordable housing supply in Billings, while asking staff and developers to keep the council apprised of remaining risks and scheduling as the financing and contractor procurement advance.