Senate committee hears wide support for one-time $50M transfer to Housing Montana Fund in SB 405

Senate Finance and Claims held a fiscal-note hearing on Senate Bill 405, which proposes a one-time transfer of $50,000,000 from the general fund to the Housing Montana Fund to provide gap financing for affordable and workforce housing projects across Montana.

Sponsor Senator Dave Fern (Senate District 2) said the fund acts as a revolving loan program and that the fiscal note shows the state would not incur ongoing operational costs for the fund. "This fund already exists, and it works as a revolving fund," Fern said, adding the proposal anticipates rule updates to administer loans and that loan repayments and interest would sustain the fund.

An affordable-housing developer with Echo Enterprises and chair of the Montana Housing Coalition (identified in the record as representing developers) told the committee SB 405 would unlock 4% housing tax credits and provide the gap financing necessary to complete multifamily affordable projects. He told members the $50 million is meant to be fully directed to projects: "This means that 100% of the $50,000,000 you make possible will go directly towards expanding housing opportunities rather than being absorbed by any bureaucratic overhead," he said.

Jennifer Olson, government affairs director for the Montana League of Cities and Towns, Jake Brown of ShelterWF, Melissa Shannon (representing Billings Chamber and Montana Chamber), Aiden Myhre (Kalispell Chamber), Maddie Tyson (insurance sector testimony), Daniel Cox (Montana Association of Realtors), Alissa Snow (Blackfeet Tribe / Fort Belknap / Chippewa Cree), Ella Smith (City of Missoula and Montana Community Action Network), Alison Corbin (Montana Economic Developers Association), Aubrey Godbey (Montana Budget and Policy Center), and Cheryl Cohen (executive director, Montana Board of Housing) all testified in support, emphasizing the program’s revolving-loan structure, ability to leverage federal tax credits, and the state-level scarcity of other funding sources.

Committee members asked fiscal-note clarifying questions. Cheryl Cohen confirmed the fund was created in 1999 and has received no prior state appropriations and currently holds roughly $300,000 from prior federal loan repayments; SB 405 would be the first state general-fund appropriation into the account. Cohen also clarified the fiscal note includes a proposed 1 FTE program specialist to be funded from proprietary (loan service) fees rather than additional general-fund dollars.

Senator Fern closed urging support; the committee received no formal opposition during the hearing. No committee vote on SB 405 was recorded during this session.