Commission allocates $2 million to Gallatin Housing Impact Fund for Hidden Creek affordable housing project

The Bozeman City Commission voted 5–0 to authorize a $2 million grant to NeighborWorks Montana’s Gallatin Housing Impact Fund for use as gap financing in the Hidden Creek affordable housing project.

David Fine of the City of Bozeman presented the proposed grant and explained the fund’s structure: the city’s grant augments philanthropic and bank contributions to create a revolving impact fund administered by NeighborWorks—an organization designated as a community development financial institution (CDFI). Fine said the city previously contributed $1 million to the fund and that the additional $2 million will be loaned into the Hidden Creek project; NeighborWorks will track the fund and keep at least $3 million in city‑area investments for a required reporting period.

Seth O’Connell of United Housing Partners described Hidden Creek as a 182‑unit project that will be permanently deed‑restricted for households up to 70% of area median income (AMI), with 40 units reserved for households at or below 30% AMI. The project sits on land donated by Gallatin County; HRDC will be a co‑owner and the property manager. The proposed development includes multiple buildings, a mix of one‑, two‑ and four‑bedroom units, and plans for nine for‑sale townhouses via a community land trust on an adjacent lot.

Fine and meeting commenters noted the fund’s leverage: in previous projects relatively modest gap investments unlocked many tens of millions in additional capital, especially on LIHTC (low‑income housing tax credit) projects. Commissioners discussed the expected repayment timeline: Fine and fund representatives said tax‑credit projects often return capital on a long timeframe (for some LIHTC deals, a material payback can occur at year 15–17), so this grant is intended as revolving capital but may take years to recycle for other local projects.

Public comment included representatives from HRDC who supported the grant and a resident speaker who urged consideration of alternative financing models (for example, municipal bond‑backed production funds) to increase speed and scale. Commission members praised the county partnership, the project’s deed‑restricted affordability and the staff work assembling financing and community input.

Ending: The grant authorization sends $2 million to NeighborWorks Montana to be deployed for Hidden Creek; NeighborWorks must track use in the city and report on outcomes, and commissioners indicated interest in continuing complementary funding and policy work to increase affordable housing production.