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House Bill 120 would broaden CPACE multifamily definition to include low-rise apartments
Summary
Sponsor and multiple proponents told the House State Administration Committee that changing the statutory definition of "multifamily housing facility" will allow more workforce and affordable housing projects to access CPACE financing for energy- and water-efficiency upgrades.
Representative Julie Darling introduced House Bill 120, which would revise the definition of "multifamily housing facility" in the Commercial Property Assessed Capital Enhancements (CPACE) statute to allow more multifamily projects — including two- and three-story, no-elevator buildings — to access CPACE financing.
"CPACE is a way for business owners to get financing from private lenders and complete cost effective improvements on their buildings that provide energy efficiency, water efficiency, or renewable energy," Darling said while opening the hearing.
Adam Gill, executive director of the Montana Facility Finance Authority (MFFA), told the committee the current CPACE statute references a definition in MCA 49-2-3056 that was written to address housing-discrimination law and requires elevators and ground-floor units for a property to qualify as multifamily. Gill said that requirement excludes most low-rise multifamily housing in Montana and has prevented projects such as Riverview Housing Trust in Big Sky and a North Missoula Community Land Trust project from participating.
"The simple fix for this is, thankfully, very simple. We just have to change the definition of multifamily and basically in-house it into our statute," Gill said. He proposed defining a multifamily housing facility as a property with at least five units intended primarily for residential use, each with a full bathroom and kitchen, and said doing so aligns CPACE with common federal definitions.
Proponents that followed included McKenna Sellers of the Montana Renewable Energy Association, Caroline Canarios of the Northern Plains Resource Council, and Jasmine Krotkov of the Montana Farmers Union. Sellers called the bill a "say what you mean" cleanup and said CPACE has delivered economic benefits "without costing taxpayers any money." Krotkov told the committee CPACE helps rural hospitals, care facilities and nursing homes reduce power bills and strengthen community anchors.
Committee members asked technical and programmatic questions. Representative Perry asked where the elevator language is removed; Gill pointed to the amendment language that moves the multifamily definition into the CPACE statute and removes the cross-reference to MCA 49-2-3056. Perry also asked how CPACE loans are secured; Gill explained that participating properties are assessed a special assessment that is collected with property taxes and routed to the lender through the county, and he said "no state money is obligated." Representative Byrne asked whether the sponsor intended distinct legal definitions for "affordable" and "workforce" housing; Gill answered he was using industry conventions rather than statutory definitions.
The hearing record showed no opponents in the room or online. Representative Darling closed by urging committee support, saying the bill's change is narrow and intended to make more projects across Montana eligible for CPACE financing.
No committee vote or formal action was recorded during the hearing.
