The Montana Board of Housing has selected Missoula’s Creekside Apartments as one of eight projects that will compete to receive a portion of more than $29 million in funding to provide affordable rental properties.
On Friday, KGVO News spoke with Cheryl Cohen, administrator of the Montana Division of Housing, for details on the competition to receive federal housing credits.
“Earlier this week, Montana Board of Housing trustees heard presentations from developers seeking to apply to receive federal low-income housing tax credits,” Cohen began. “It’s a competitive credit that can help finance the construction or rehabilitation of affordable rental housing, and then that housing becomes affordable with income and rent restrictions for 50 years, so it’s a really good program. to provide long-term accessibility.”
Cohen described the Creekside Apartments complex and some of the complications of the project.
“The council selected a project called Creekside Apartments in Missoula,” she said. “Homeword Incorporated is the sponsoring developer, and this is an acquisition rehabilitation project to preserve 40 married quarters units that currently exist in Missoula. However, the Creekside apartments need some repairs in order to have a longevity in the future. It really is a great project and we are delighted that they can submit a full application.
Cohen said the final decision will be made by the Board of Housing this fall.
“We’ll have a meeting in October where the board has to further whittle down this group of really great projects to maybe four or five projects,” she said. “We are routinely oversubscribed at a rate of about three to one for the Low Income Housing Tax Credit program. It’s really competitive, but it was a major step for the Missoula Creekside apartment project to pass that first cut, and we’ll see how things go for them at the October board meeting.
The winning projects will still face the same supply chain and labor issues that the housing industry has grappled with since the start of the pandemic.
“All of the developers we work with see the ongoing challenges of supply chain disruptions and inflation, and their impact on construction costs and labor,” she said. declared. “We have seen, I think, at least one project where they had to reduce the number of units they were offering in order to stay within the price to keep the price affordable within our maximum price. We can only award a maximum of $6.5 million.
The Board of Housing chose the properties after hearing submissions from real estate developers and interested community members who wanted to submit their full applications for federal housing tax credits, the nation’s largest source of funding for developing housing. affordable housing.
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