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Housing Tax Credits to Leverage $33 Million in Construction Investment across Montana

Montana Board of Housing awards credits for veteran, senior, and low-income housing projects

On Monday, December 9, 2013 the Montana Board of Housing allocated Housing Tax Credits to Great Falls, Glendive, Crow Agency, Sidney, Malta and Box Elder as successful applicants of the 2014 Tax Credit Allocation Process. The federal tax credits help finance the creation and rehabilitation of affordable housing for low to moderate income families across Montana.

The projects in Great Falls, Glendive, Crow Agency, Sidney, Malta and Box Elder are for new construction and acquisition rehabilitation. These six projects will add a total of 116 new units and 71 rehabilitated units to the housing market, and will provide much-needed housing for senior, veterans and families in units of one to four bedrooms. The total proposed construction cost for the projects allocated is $33 million.

"Too many Montana families, veterans and seniors are struggling to find affordable housing. These tax credits are a great way not only to provide more than 100 of our fellow Montanans a place to call home, but will also leverage this public investment with private dollars that will create jobs in many local communities," said Governor Steve Bullock.

"The Tax Credit Allocation Process is a win-win program. It provides a valuable financing tool that helps create affordable housing in the communities that need it most while creating good paying jobs and revenue for local governments," said Montana Department of Commerce Director Meg O’Leary.

The State of Montana had nearly $2.7 million in federal tax credits for 2014 to allocate to projects which build or rehabilitate rental housing for low and moderate income Montanans. This amount includes an additional $54,352 in credits which were carried forward from 2013.

Montana will benefit from the generation of over $20 million in equity for construction expenditures in 2014 due to the Housing Tax Credits. In addition to money spent on building materials, many jobs are created in construction, property management and property maintenance. Property taxes or payment in lieu of taxes are also a direct benefit to the local governments.

There were 4 other projects submitted totaling $26.3 million in construction costs that were not allocated credits. Competition for funding is strong and there are many projects that would have been funded if Montana had additional credits to allocate for this purpose.

Approved projects include:

Malta: Cedar View Apartments

County: Phillips

Acquisition/Rehabilitation Total Cost: $3,835,107

Housing Tax Credits Awarded: $253,415*

Equity Generated with Tax Credits: $2,102,520

Thirty-one Family Units: 1 & 2 Bedroom

Developer: GMD Development/Homeword, Inc

Crow Agency: Apsaalooke Warrior Homes

County: Big Horn

New Construction Total Cost: $2,788,054

Housing Tax Credits Awarded: $259,000

Equity Generated with Tax Credits: $2,071,793

Fifteen Units for Veterans: 1 Bedroom

Developer: Apsaalooke Nation Housing Authority

Glendive: Pearson Place

County: Dawson

New Construction Total Cost: $5,327,460

Housing Tax Credits Awarded: $500,000

Equity Generated with Tax Credits: $4,199,580

Twenty-seven Family Units: 2 & 3 Bedroom

Developer: Housing Solutions

Great Falls: Voyageur Apartments

County: Cascade

New Construction Total Cost: $7,451,988

Housing Tax Credits Awarded: $647,500

Equity Generated with Tax Credits: $5,567,943

Thirty-eight Units for Seniors Fifty-five and older: 1 & 2 Bedroom

Developer: Accessible Space

Sidney: Sunset Village Apartments

County: Richland

New Construction Total Cost: $5,930,873

Housing Tax Credits Awarded: $540,471

Equity Generated with Tax Credits: $4,323,336

Thirty-six Family Units: 1-, 2-, 3-, and 4-Bedroom

Developer: Richland Housing Authority/Mountain Plains Equity Group

Box Elder/Agency: Chippewa Cree Homes I

County: Hill

Scattered-Site Acquisition/Rehabilitation Total Cost: $7,618,385

Housing Tax Credits Awarded: $488,966 *

Equity Generated with Tax Credits: $4,009,521

Thirty Family Units: 3 & 4 Bedroom

Developer: Chippewa Cree Housing Authority

*Includes conditional Tax Credits that will be awarded if they become available.

For more information, contact Penny Cope at the Montana Board of Housing at (406) 841-2846.

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