Missoula affordable housing project advances in quest for tax credits
Martin Kidston
(Missoula Current) An affordable housing project planned in Missoula took the top vote this week at the Montana Board of Housing, where members praised Franklin Crossing's broad support and the number of units it will deliver.
The $67 million development planned on Johnson Street was among eight projects across Montana selected by members of the state housing board to advance to the next application round in their pursuit of housing tax credits.
Bruce Posey, the board's chairman from Billings, said Franklin Crossing would deliver “a real good bang for our buck” if awarded the low-income tax credits.
“At 192 units, I think we're getting a real good bang for our buck,” he said. “All the work that Missoula has gone to get this project going, you've got to give them credit. I also like the fact that it's an infill site.”
The tax credits represent just one of several funding threads required to bring Franklin Crossing to fruition. Already, the city has donated land to the project while the Missoula Redevelopment Agency has reserved $9.7 million in tax increment from the Midtown district to aid the development.
As presented, the project would include 192 apartments reserved for those earning between 30% and 70% of the area median income. The units would include one, two and three bedrooms collected across three separate, five-story buildings.
The project serves as a partnership between the city, the Missoula Housing Authority and United Housing Partners. Project representatives said as many as 17 different funding sources are needed to make the development work.
“The funding stack on that project is incredible in the number of sources that funding has to come from to make something like that work – it's a significant number,” said City Council member Mike Nugent. “If Franklin Crossing crosses the finish line, it's going to be looked at as a generational project that used every tool available to put housing in the middle of town that people can afford.”
According to the city, 60 units within the deed-restricted housing project will be reserved for those earning between 30% and 60% of the area median income. The remaining 132 apartments would serve those earning between 60% and 70% of the area median income.
Of the $9.7 million in funding from MRA, roughly $3 million is reserved for infrastructure and $6 million to cover the cost of subsidizing the apartments. The low-income tax credits are also key to success.
The project's community support won praise from the state housing board.
“I feel like this is a project that's bigger than housing,” said board member Amber Parish, also of Billings. “It really is a community effort. The city donated land. The number of units is great. In this case, the number of partners and people involved are truly going to make this project great for Missoula.”
The board reviewed 11 pre-applications for tax credits from across the state and selected eight to advance to the next round, where they'll submit a full application. The maximum award to any one project is $8.5 million.
“This is a visionary project,” board member Jeanette McKee said of Franklin Crossing. “It's rare that we see all that (support) put together.”