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Panel hears support for $50 million one-time transfer to Housing Montana Fund
Summary
Senate Finance and Claims heard SB405 proposing a one-time $50 million transfer to the Housing Montana Fund to provide revolving gap-financing for affordable housing; developers, local governments and tribal representatives urged support while Board of Housing officials clarified the fund has not previously received state appropriations and currently holds about $300,000.
Senate Finance and Claims considered SB405, a proposal to transfer one-time general fund dollars into the Housing Montana Fund to create a revolving loan pool for affordable and workforce housing projects. Sponsor Senator Dave Fern said the fund is meant to "be sort of a perpetual revolving fund for low and moderate housing in the state."
Affordable housing developers and industry groups urged committee support. Becky Brandsborg, an affordable housing developer and chair of the Montana Housing Coalition, told members the bill would provide gap financing to leverage federal low-income housing tax credits and other capital: "SP 405 helps fix this problem by providing the gap financing we need to build more projects," she said. Jennifer Olson of the Montana League of Cities and Towns highlighted the bill's $50,000,000 one-time allocation from the general fund and said that the Department of Commerce will administer the fund without new staffing costs.
Cheryl Cohen, executive director of the Montana Board of Housing, answered committee questions about the fund's history and fiscal capacity, saying the fund was established in 1999 and has had no prior state appropriations; it currently holds approximately $300,000 from past federal loan repayments and limited federal transfers. Cohen explained that once a legislative transfer is made, the account would be treated as proprietary and administered for loans to affordable housing projects.
Tribal and local-government witnesses, including Alyssa Snow (Blackfeet, Fort Belknap, Chippewa Cree) and Ella Smith (city of Missoula/Community Action Network), said the fund would expand capacity in communities that face limited state funding options. Supporters emphasized the revolving nature of the fund and its role in completing projects that "wouldn't otherwise" pencil out without gap financing.
Committee members were shown an updated fiscal note during the hearing. The hearing closed without a committee vote; committee materials note proponents asked for passage.
