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Homeward/Homefront says LB Lofts financing in place; design changes cut costs, construction targeted for late summer
Summary
Homeward and Homefront told the council they have secured key funding commitments for LB Lofts—state Go Montana awards and board disposition funds—and have revised the design to reduce cost risk. The team seeks council approval of a procurement method next week and aims to begin site work in August with financial close in September if permits and a contractor are in place.
Heather McMillan, project development director for Homeward, told the council the LB Lofts affordable housing project received major funding and that design changes and contractor preconstruction work brought the development back into financial feasibility.
McMillan said the Go Montana Housing Fund awarded roughly $7 million to the project and Homefront’s board earmarked about $6.2 million in disposition funds. With a targeted design revision—consolidating building footprints and simplifying foundation and roofing details—the team now estimates about $261,000 in hard construction cost per unit and about $344,000 all‑in per unit. "Between the savings we found on design and the additional resources, we've been able to meet in the middle and come up with a feasible project," McMillan said.
Architect Eric Schmidt (High Plains Architects) described changes intended to reduce bid risk: shifting the first floor to conventional framing while using premanufactured 'pod' units on upper floors, standardizing windows and roof framing, removing balconies to simplify foundations, and increasing unit size to improve livability. The redesign reduces building count from 18 to 17 and increases the unit total to 102; the team said the change simplifies excavation and formwork and was verified by a preconstruction cost exercise with Langless Construction.
Procurement and schedule: Homeward/Homefront requested council approval to use a construction manager at risk (CMAR) RFP process rather than a sealed bid, citing federal HOME program procurement rules and prior precedent. The project team said the RFP is on the street and that, if a general contractor is onboard quickly, site work could start in late August and full construction follow after financial closing targeted for September. Staff noted some permit revisions are needed and emphasized they will not begin major ground‑disturbing work without adequate building‑department review.
Council and public response: council members asked detailed questions about timeline, permit review, the status and condition of modular 'pod' units being reused, and management plans for on‑site services. Some council members and public speakers praised the project's affordability mission; others asked for careful oversight and for the city to ensure procurement and permitting milestones are met before committed funds are spent.
Next steps: the council is scheduled to consider the procurement method at its next meeting; the project team said it will continue due diligence and return with final figures and contract approvals.
