MONTANA DEPARTMENT OF COMMERCE
Montana Board of Housing
FOR IMMEDIATE RELEASE:
Thursday, December 19, 2013
Penny Cope, Public Relations, Montana Board of Housing, (406) 841-2846
Ronja M. Abel, Communications Director, (406) 841-2557
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
(Helena, MT) – 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
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
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
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
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
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.