Analysts and pollsters say Bozeman ‘Ward’ mandate would need subsidies to meet affordability goals, warn of sprawl risk

Mark Bond, community engagement manager for One Valley and a lead on the Regional Housing Coalition’s Ward work group, told the Bozeman City Commission on Oct. 7 that a capital gap — the difference between the cost to build housing and what is affordable to target households — is the fundamental barrier to producing more below-market housing in the Bozeman area.

Bond said the coalition’s policy analysis found that Ward, which would require developers of projects with three or more units who pay cash-in-lieu of water rights to provide 33% of those units at about 60% of area median income, would impose a significant cost burden on mixed-income developments unless paired with subsidies or other incentives. “Mandating a high level of affordability without providing a corresponding subsidy … would make most market-rate development…