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Great Falls staff: TIF can help housing but income rules limit small downtown projects

Great Falls City Commission (work session)
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Summary

Planning staff told the City Commission that state rules let Tax Increment Finance (TIF) support workforce housing, but income-compliance requirements make TIF most useful for larger new-construction projects rather than small upper-floor infill; commissioners asked staff to explore complementary tools such as RFPs, abatements and nonprofit partnerships.

Director Brock Cherry told the Great Falls City Commission on Aug. 19 that Montana guidance treats workforce housing as households earning 60%–140% of area median income and that the mechanics of TIF make it a better fit for larger developments than for small property owners seeking to add a few units above downtown businesses.

"Income compliance is really hard," Cherry said, describing the monitoring obligations that can come with workforce-designated TIF awards and the administrative gap the city would face in enforcing those restrictions…

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