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Committee boosts coal‑trust loan program with $50 million to keep affordable housing projects moving
Summary
The House Taxation Committee approved a $50 million expansion of the coal-trust multifamily loan program to continue financing affordable rental housing across Montana. The program uses repayable loans and proponents said it leverages private investment and preserves the trust’s value.
Representative Mark Payne presented House Bill 878 to expand the coal-trust multifamily-housing loan program by $50 million. Payne said the program has been a “smart, proven solution” that leverages private investment and supports construction in communities that otherwise cannot build affordable multifamily projects.
Proponents — including the Montana Housing Coalition and private developers — said the loans are repaid with interest to the trust and thus continue to earn returns while catalyzing housing construction. Seth O’Connell, representing a developer that used a coal‑trust loan for a project in Helena, described a project financed by a $6.8 million coal‑trust loan that produced 72 affordable units and argued the program makes otherwise marginal projects viable.
The Board of Housing’s executive director and program staff explained underwriting and oversight; committee members asked about loan terms and the minimum interest‑rate floor tied to trust performance. The fiscal note reflected administrative costs for an FTE and operating support for the program administrator; committee members also discussed a property‑tax exemption request for some projects.
The committee passed HB 878 in executive action by roll-call vote (17–4). Lawmakers said the loans are intended to be repaid into the trust and to support additional affordable units across urban and rural Montana.
