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Billings council approves $1.545 million in HOME/CDBG gap financing for 101-unit LB Lofts
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Summary
The Billings City Council voted to provide $1.545 million in HOME and CDBG funding to Homeward/Homefront for the LB Lofts affordable housing project, a 101-unit development in the Billings Heights. Council member Gulick recused; the measure passed among participating members.
The Billings City Council on Oct. 13 approved $1,545,000 in city HOME and CDBG assistance to support LB Lofts, a 101-unit affordable rental development proposed for the Billings Heights.
Jordan Langton, a city housing staffer, said the project — to be developed by Homeward and owned and managed by Homefront — will include 101 two-bedroom, two-bath units with six home-assisted units and a targeted income mix: 38% serving households at 31–50% of area median income and 62% at 51–80% of AMI. The request to the city was for $1.4 million in HOME funds and $145,000 in community development block grant money. Construction is expected to begin in May 2026 with occupancy in late 2027.
Patty of Homefront and Heather McMillan of Homeward told council the project has tax-credit equity commitments and that the city funds would be gap financing. They described efforts to obtain general contractor input, the need to manage market volatility, and contingency budgeting to cover damage or replacement of modular building "pods" being stored on site.
Councilors pressed presenters on whether the pods were occupied, pest-control measures and how the city’s support affects service demand. Homefront said the pods are unoccupied, wrapped for winter storage, and that they have contingency funds and extra pods should replacements be required. Presenters also described a payment-in-lieu arrangement Homefront uses to contribute to city services in place of property tax on nonprofit-owned housing.
Council member Brescia moved to approve the staff recommendation to fund the project; the motion was seconded and carried, with Council member Gulick recusing himself because his firm is the project architect. The council recorded unanimous support among participating members.
