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Council approves $1.339 million TIF participation for workforce homeownership project in South Billings
Summary
The council approved the South Billings urban renewal advisory committee's recommendation to provide up to $1,339,276 in TIF assistance for a 35‑unit workforce homeownership project (South Hills Commons) that uses the Montana Community Reinvestment Plan mortgage buy‑down model to deliver deed‑restricted, income‑qualified owner‑occupied homes.
The council on May 11 approved tax‑increment financing assistance up to $1,339,276 for South Hills Commons, a 35‑home workforce homeownership project in the South Billings renewal district.
Project proponents explained the Montana Community Reinvestment Plan (MCRP) financing model, which pairs state‑administered down‑payment/mortgage buy‑down funds with local capital to offer discounted purchase prices and lower monthly payments to households earning roughly 60–140% of area median income. The developer said a $400,000 home under the program can be offered with no down payment and a mortgage payment capped at about 30% of income, producing materially lower monthly costs when compared with market financing.
The advisory committee reviewed the applicant’s request for roughly $2.49 million in TIF‑eligible expenses and recommended a reduced award equal to about 10% of project cost. Council debate focused on public engagement and neighborhood notice; several council members urged better local notification for projects that use public funding streams. After discussion the council approved the advisory committee recommendation (1.339M); a minority of council members voted no.
The developer and advisory committee said the project will create permanent deed‑restricted attainable homes and generate new taxable property value once built and sold; they described the award as infrastructure participation to enable buildout and to leverage state MCRP mortgage resources.
The city will finalize a reimbursement agreement and monitor construction and buy‑down payments as homes are completed and sold; TIF reimbursement is conditioned on verified eligible infrastructure costs and project performance.
