MRA board amends workforce-housing guidelines to remove deconstruction-only exception and allow later funding requests

The Missoula Redevelopment Agency board on March 27, 2025 unanimously approved two amendments to the agency’s pilot workforce-housing program guidelines. The changes (1) remove the exception that previously exempted deconstruction-only TIF requests from the requirement to make a payment equal to 10% of the MRA reimbursement to the city’s Affordable Housing Trust Fund, and (2) allow applicants who receive TIF assistance for right-of-way work, building removal, utilities or façade improvements to return later to request workforce-housing program assistance for the same property.

Staff rationale: MRA staff told the board that truly deconstruction-only projects are rare and that most projects include some combination of deconstruction, foundation removal, grading or site-preparation costs. Tracking and segregating the deconstruction portion for accounting and for the 10% trust-fund payment would be administratively complex. Staff said most deconstruction elements in recent projects fell well below the $100,000 threshold that triggers the 10% payment and that the agency can continue to incentivize deconstruction through regular TIF mechanisms when appropriate.

Return-to-board clarification: staff also recommended explicitly allowing applicants to submit a subsequent workforce-housing funding request for the same property when initial approvals cover right-of-way, building removal, utilities or façade work. Staff framed that change as a response to the practical timelines developers face while studying the feasibility of including income-restricted units.

Board comments and conditions: board members said the changes were reasonable and expected as the pilot program matured. Several members emphasized that future requests for workforce-housing assistance would be evaluated against the workforce-housing guidelines and that any donation to the trust fund is final once remitted; the MRA does not control the trust fund itself.

Outcome: the board voted unanimously to adopt the two amendments. Staff said the change will provide clarity to applicants and may affect how projects such as the Levasseur Street proposal handle future workforce-housing requests.

Ending: Staff will update the workforce-housing program documents to reflect the amendments and continue outreach to developers and property owners about the pilot program.