There is no action request on this matter. It is simply a statutory requirement that a public hearing to gather public input must be accomplished.

This project will be a collaboration between HomeFront (formerly known as the Housing Authority of Billings) as General Partner Owner, and Homeword as Developer.  It is an exciting and unique project critical to addressing the need for more homes that people can afford to rent in Billings, especially critical since Montana lost Shiloh Glen from our affordable portfolio earlier this year, 120 affordable rental homes lost to market rate housing. This loss is not accounted for in the need defined by the mini-market study but will be updated when a full market study is completed. 

Utilizing pre-manufactured bed and bathroom units that are referred to as “PODS,”
sourced from an unoccupied worker housing development in North Dakota, the project aims to
transform these units into 101 dwelling units across 18 new apartment buildings. The term “PODS”
not only captures the essence of these self-contained units but also inspires the acronym P.O.D.S;
Pre-manufactured Overhauled Dwelling Solutions. Emphasizing material reuse and sustainability,
the project seeks to maximize retained materials from the existing PODS, enhancing the thermal
envelope and structural performance. The envisioned community is comprised of two building types: a
3-story, 6-unit apartment building and a 3-story, 5-unit apartment building.

Each apartment will be a two-bedroom, two-bathroom home, utilizing (2) pods. As noted above, there are two building types: a 3-story, 6-unit apartment building, and a 3-story, 5-unit apartment building with one fully accessible unit on each first floor. The goal is to maximize the amount of retained and reused materials from the existing pods, while providing additional material to improve the thermal envelope and structural performance.  New construction is required for kitchens, living spaces, laundry areas, vertical circulation, building systems, utilities, and site work.

This project focuses on sustainability by reusing existing components of the pods, thereby reducing material waste and minimizing the environmental impact associated with manufacturing new materials. The performance goals for these PODS are aligned with the 2021 International Energy Conservation Code (IECC) and Energy Star standards, making them eligible for the 45L Tax credits. The thermal envelope of the pods will be improved to enhance energy efficiency. Additionally, the project will explore the possibility of on-site renewable energy generation.

Amenities at the site will include off-street surface parking, site bike racks, a dog park, and incorporation of the existing Tom Moss Memorial Park and Community Garden.  Public open spaces that support community use, gathering, playing, and a connection to natural/native landscaping will be provided to enhance and strengthen the residential community. 

The site is located on Sioux Lane in the Billings Height area on property donated to HomeFront, adjacent to HomeFront properties Red Fox, White Tail Run and Pheasant Home.  The opportunity to use donated land significantly reduces overall development costs, and developing in an area already zoned for multi-family use provides an additional advantage to the project.  The site is relatively flat which eliminates the need for expensive foundations and retaining walls while supporting accessibility throughout the property.  It is close to essential community amenities with a Walmart Supercenter and Intermountain Health Heights Clinic both less than a mile away.   
 

N/A

This public opportunity to comment has no fiscal consequences to the City.

Using both the 4% and 9% tax credit programs increases the leverage of the 9% tax credits, while the use of the 9% tax credits makes the project financially feasible, even in these challenging times with skyrocketing construction pricing, ongoing material delays, and the ever-increasing construction industry labor shortage.  In addition to project costs, project feasibility is compounded by increasing cost of financing as well. We believe we have put together a project that makes the most advantageous and impactful use of the Housing Tax Credit program, while limiting the need to access the dwindling sources of other housing fund programs available to us here in Montana.  The project also incorporates the innovative use of pre-manufactured building elements, while tailoring the homes to meet the needs of the future residents and the community and providing an attractive development for the neighborhood.  The reuse of these “pods” is also helping reduce the cost of new construction by being more efficient than traditional stick build construction, greatly assisting with this project’s financial feasibility.  The project has been in pre-development for more than a year and is ready to move forward when funding is secured, and the partnership is closed.

With the loss of Shiloh Glen to market rate, and the recently released MSTP income limits showing a nine to ten percent increase in incomes, the market rents in Billings are constantly increasing.  Meanwhile, so many of our critical community members – first responders, teachers, service workers, veterans, etc. – are continuing to see relatively stagnant incomes.  HomeFront’s Housing Choice Voucher waitlist is over 2,700 households, and the waitlist for 1- and 2-bedroom apartments is more than 4,100 households.  HomeFront will be providing at least 30 Project Based Vouchers for households with lower incomes at the PODS project, which not only helps the residents, but helps operations remain financially stable.