HAB Development submitted a request for Tax Increment Financing (TIF) assistance on March 20, 2026, to support the South Hills Commons project, a workforce housing development consisting of 35 owner-occupied homes. This project, located on vacant lots near King Avenue East and Stephens Lane, represents the first development under the Montana Community Reinvestment Plan (MCRP). Homes will range from approximately 1,299 to 1,676 square feet and include three bedrooms, two to two-and-a-half bathrooms, and two-car garages.

The proposal was reviewed by the SBURA consultant and presented to the SBBURD Advisory Committee on April 7, 2026. After evaluating consistency with the SBBURD Urban Renewal Plan, Master Plan, City of Billings TIF Policy, and Montana Code Annotated, the Committee recommended approval of up to $1,339,202.76 in TIF assistance. Workforce housing qualifies as an eligible use of TIF under MCA 7-15-4288 when aligned with urban renewal objectives. TIF funds will support eligible infrastructure and site development costs, including grading, roadwork, utilities, and land preparation. The project advances redevelopment goals by improving underutilized land, expanding workforce housing opportunities, and enhancing infrastructure.

The total project cost is estimated at $13.39 million, with the requested TIF support representing 10% of the total investment. The project achieves a strong 13:1 private-to-public investment ratio, significantly exceeding the City’s 5:1 policy benchmark. The anticipated payback period for the TIF investment is approximately 15.65 years based on projected tax increment revenues.

HAB Development submitted an application requesting Tax Increment Financing (TIF) assistance on March 20, 2026 to support the construction of the South Hills Commons, a residential housing infrastructure development consisting of 35 owner-occupied workforce homes delivered through the Montana Community Reinvestment Plan (MCRP). These homes will range in size from, approximately, 1,299 to 1,676 square feet, each consisting of three bedrooms, two to two and a half bathrooms, and two car garages. This project represents the first MCRP project since inception. The proposed development will utilize empty lots off King Avenue East and Stephens Lane.

The application was received and reviewed by the SBURA consultant on March 20, 2026 and presented to the SBBURD Advisory Committee on April 7, 2026. The Advisory Committee evaluated the project’s alignment with the SBBURD Urban Renewal Plan, the SBBURD Master Plan, the City of Billings TIF Policy, and applicable provisions of Montana Code Annotated. Following review, discussions, and questions, the SBBURD Advisory Committee recommended approval of up to $1,339,202.76 in TIF assistance to support eligible development costs associated with the project. Pursuant to MCA 7-15-4288, workforce housing is an eligible use of Tax Increment Financing when it advances the objectives of an adopted urban renewal plan, as is the case with this project.

The development will include full site infrastructure development, residential land preparation, street improvements, landscaping, and utility services development. TIF assistance will help offset eligible costs associated with the preparation of this workforce housing development.

The total cost to complete this project is estimated at $13,392,027.60. The recommended $1,339,202.76 TIF investment represents 10% of the overall project cost and results in a 13:1 private-to-public investment ratio, exceeding the City’s TIF policy guideline of 5:1. Based on projected property tax increment, the estimated payback period for this investment is approximately 15.65 years.

The SBBURD Advisory Committee finds that this project is consistent with the SBBURD Urban Renewal Plan, SBBURD Master Plan, City of Billings TIF Policy, and applicable Montana Code provisions governing urban renewal and tax increment financing. The project advances redevelopment objectives by reinvesting in currently underutilized parcels.