The Montana housing-finance ecosystem
Montana's housing pipeline draws on a mix of state agencies, federal pass-through programs, and local frameworks. Programs span the full spectrum: low-income rental, supportive housing for special-needs populations, workforce / missing-middle housing, homelessness prevention, first-time homebuyer assistance, mixed-use redevelopment, and disaster recovery. Below is a directory of every currently-active state-level and major-local program, organized by administering agency.
Montana Board of Housing (Montana Housing)
The Montana Board of Housing (operating under the Montana Department of Commerce as 'Montana Housing') is the state's housing finance agency. Montana Housing allocates federal LIHTC, issues multifamily and single-family bonds, administers federal HOME and NHTF, and operates Montana's primary first-mortgage homebuyer products.
Federal 9% LIHTC
Competitive · RentalMontana Housing allocates Montana's federal 9% LIHTC ceiling — $3,953,600 in 2026 (the small-state floor under Rev. Proc. 2025-32, which exceeds the per-capita amount). Annual competitive QAP process.
4% LIHTC + Multifamily Bonds
Non-competitive · BondsNon-competitive 4% LIHTC paired with Montana Housing-issued multifamily revenue bonds.
GO Housing – Multifamily Homes Program (MFHP)
State capital subsidy · Montana Housing Trust (GO Trust)Montana Housing's state-funded multifamily loan program, funded from the Montana housing trust within the Montana Growth and Opportunity (GO) Trust permanent fund. Provides loans for development and preservation of affordable multifamily rental housing. Created in the 2025 session, it absorbed the $65 million originally capitalized under the former Coal Trust Multifamily Homes Program.
Montana Housing Trust Fund
State capital subsidyMontana's state-funded housing trust fund administered by Department of Commerce. Supports affordable rental and homeownership development plus homelessness response.
HOME Investment Partnerships
Federal pass-throughMontana Department of Commerce administers Montana's HOME allocation, primarily for multifamily rental development paired with LIHTC.
National Housing Trust Fund (NHTF)
Federal pass-through · ELIMontana Department of Commerce administers Montana's NHTF allocation for housing serving extremely-low-income households.
Section 811 Project Rental Assistance
Operating subsidy · DisabilityMontana administers HUD Section 811 PRA allocation for extremely-low-income persons with disabilities.
Permanent Supportive Housing
Supportive housing · CoordinatedMontana Housing capital subsidy for permanent supportive housing combined with operating subsidies from Montana Department of Public Health and Human Services.
Montana Regular Bond Program
Homeownership · Below-market mortgageMontana Housing's flagship single-family first-mortgage product offering below-market rates and DPA options for first-time and other eligible homebuyers.
80% Combined Program
Homeownership · 80% LTV first + 20% LTV secondMontana Housing's 30-year first mortgage at 80% loan-to-value paired with a 20% loan-to-value second loan from a partnering nonprofit (e.g., NeighborWorks Montana or an HRDC), eliminating the need for mortgage insurance. The “80%” is loan-to-value, not AMI; standard Montana Housing purchase-price and income limits apply, and homebuyer education is required.
Montana DPA Programs
Homeownership · DPAMontana Housing's down-payment assistance programs providing forgivable second-mortgage loans combinable with Montana Housing first mortgages.
Montana Housing Mortgage Credit Certificate
Homeownership · Federal tax creditFederal income-tax credit for eligible first-time buyers equal to a percentage of mortgage interest paid annually.
Montana Department of Commerce
MT Commerce administers federal CDBG for non-entitlement areas plus state economic development programs that interact with housing development. Montana has not received a HUD CDBG-DR allocation; recovery from the June 2022 Yellowstone-area flooding (FEMA DR-4655) relied on FEMA, SBA disaster loans, USDA, and state resources.
CDBG (state-administered)
Federal pass-through · Non-entitlementMontana Department of Commerce administers federal CDBG for non-entitlement Montana communities.
Montana Historic Property Preservation Tax Credit
State tax credit · Historic rehabMontana state historic tax credit for rehabilitation of certified historic structures. Pairs with federal HTC and 4% LIHTC for adaptive-reuse housing developments.
Billings, Missoula, and major Montana local programs
Billings, Missoula, Bozeman, and Helena operate local affordable housing programs.
Billings Affordable Housing
Local subsidyBillings's affordable housing programs through the Community Development Department supporting affordable rental and homeownership development.
Bozeman Affordable Housing
Local subsidy · Rapid growthBozeman's affordable housing programs particularly active given the city's rapid growth and housing cost increases.
Missoula Affordable Housing
Local subsidyMissoula's affordable housing programs through the Office of Housing supporting affordable rental and homeownership development.
How Montana programs typically combine
Programs combine differently depending on what you're building. A short reference of representative stacks across the program-type spectrum:
- Statewide 9% LIHTC: 9% LIHTC + Montana Housing Trust Fund + HOME.
- GO Housing MFHP: GO Housing – MFHP loan + 4% LIHTC + Montana Housing bonds — Montana-specific state-trust-funded pattern.
- 4% LIHTC + bonds: 4% LIHTC + Montana Housing bonds + GO Housing MFHP + state HTF.
- Permanent supportive housing: 9% LIHTC + Section 811 PRA + DPHHS operating subsidy.
- Historic adaptive reuse: Federal HTC + Montana Historic TC + 4% LIHTC + Montana Housing bonds.
- First-time homebuyer: Regular Bond Program + DPA + MCC.
Post-OBBBA implications
- Permanent 12% LIHTC increase: Montana's annual 9% LIHTC ceiling is permanently larger starting 2026.
- 25% PAB financed-by test: for buildings placed in service after December 31, 2025, where at least 5% of aggregate basis is financed by bonds issued after December 31, 2025, materially expanding the pipeline of 4% LIHTC deals that can be supported per dollar of bond volume cap.
- Permanent OZ program: The Qualified Opportunity Zone program is made permanent under OBBBA via rolling 10-year designation cycles — the governor nomination window opens July 1, 2026 (Rev. Proc. 2026-14) and new designations take effect Jan 1, 2027; Rural OZ provisions may apply in qualifying portions of the state.
- Section 45L / 179D termination (June 30, 2026): Developers should ensure 45L-eligible homes are acquired on or before June 30, 2026 and that 179D-eligible construction begins on or before that date.
This is educational reference material for affordable-housing practitioners, not legal, tax, financial, or investment advice. State program details, funding levels, and rules change frequently — consult the relevant state agencies and qualified counsel before structuring any transaction. See Disclaimer.