Homeword, Inc., from Missoula and GMD Development LLC, a Seattle company, are proposing to build a 136 unit, low income senior housing project in the Heights.  Low income housing tax credits will be part of the financing.  The Montana Board of Housing (MBOH) distributes the limited supply of credits and requires a public hearing with the local governing body as part of the application.  Staff requests that the City Council conduct a public hearing about the need for this type of housing, but no additional action is required.

The City Council will conduct a public hearing and there are no viable alternatives. 

There is no direct financial impact from this hearing.  If the MBOH grants the income tax credits, the Montana Dept. of Revenue may grant a property tax exemption, but the project will pay all City fees and assessments.  The property is presently in the county, so if the property is annexed and developed as proposed, the City may forego property taxes but it will not "lose" any revenue.

Homeword, Inc. is a non-profit company with twenty–two years of history developing housing that people can afford in Montana, including two Housing Tax Credit properties in Billings – the Acme and Southern Lights.  GMD Development LLC is a Seattle-based for-profit affordable housing developer with properties in Alaska, Montana, Washington and Idaho.  The two organizations have formed a partnership to develop and operate affordable, multifamily housing. Homeword and GMD will be Co-Developers and Co-General Partners in the eventual Montana limited liability company.
 
The 136 senior rental apartments are planned for property located at 1316 Lake Elmo Drive, currently vacant County property surrounded by property within the City of Billings already developed with single-family and multi-family housing.  The project will include annexation into the City of Billings.  Part of the financing will be from low income housing tax credits, allocated annually by the Montana Board of Housing (MBOH) and part will be low income housing tax exempt bonds. If the project receives the tax credits, it may be exempt from State property taxes as long as its operation meets the state law requirements, but will still have to pay local assessments and fees. The MBOH requires that the policy body in the community where the housing will be located conduct a public hearing and solicit comments on whether the proposed low income housing will meet a community housing need. MBOH requires that proof of a meeting with the City Council be included in the tax credit application due September 1st, 2017.  The City Council will conduct the public hearing but it is not required to make any decisions regarding the testimony or the project.  HomeWORD and GMD would welcome a letter of support for the project.