Committee hears fiscal case for temporary state low-income housing tax credit

Rep. Larry Brewster, sponsor of House Bill 21, told the House Appropriations Committee that the bill would create a temporary state low-income housing tax credit to provide bridge funding for multifamily rental developments and asked the committee to focus on the fiscal note. “This bill doesn’t have any funding until 2028 because this doesn’t pay anything out until after projects are completed,” Brewster said, summarizing how the allocation would be phased and noting the program “has a beginning and an end.”

Supporters from housing developers, trade associations and advocacy groups told the committee HB 21 would expand Montana’s capacity to produce affordable rental units by augmenting federal Low-Income Housing Tax Credits (LIHTC). Becky Brandsborg, an affordable-housing developer and chair of the Montana Housing Coalition, said the bill would provide $1,500,000 in annual allocations over six years and that, when combined with project timelines, the credits claimed by projects would be spread across multiple years. “For the $1,500,000 allocated each year by the Board of Housing, the total credits claimed for those allocations will be $9,000,000 spread over those 5 years,” Brandsborg said, explaining the timing that creates higher annual claims later in the bill’s window.

Margie McDonald of Big Sky 55 Plus and other proponents cited outside research estimating that every dollar of state credit can leverage additional public and private investment. “Over its…