On Billings' South Side, 35 deed-restricted homes are going up at South Hills Commons, one of the first developments built to use Montana's Community Reinvestment Plan, a state program that pairs public dollars with local matching money to help working households buy a home (via Northern News Network).
Gov. Greg Gianforte and state Rep. Curtis Schomer, R-Billings, toured the site at 4317 King Ave. East last week to check on construction, according to the governor's office (State of Montana). The homes are aimed at people like teachers, nurses and police officers earning 60% to 140% of median income.
The program was created by House Bill 819 in 2023. State law defines attainable workforce housing as a home where an eligible household spends no more than 30% of gross monthly income on the mortgage, property taxes and insurance. Eligible buyers earn 60% to 140% of median household income for their county or the state, whichever is lower (Montana Code 90-6-143).
Nonprofit community reinvestment organizations run it locally. Each one has to put up an equal match before any state money is used, and assistance on a home can't exceed 30% of the purchase price. Homes carry a deed restriction, and appreciation is capped at 1% a year (Montana Code 90-6-147). The Legislature set aside $50 million for the program, distributed by county (Montana Legislature). One key detail for builders: the state account money goes toward helping buyers, not toward construction.
In Billings, the organization is HABCRO, the development arm of HomeFront, which used to be the Housing Authority of Billings. HABCRO says it's working with more than two dozen counties and matches state dollars one for one (HABCRO). It says its homes sell at least 20% below market value.
City records give a closer look at the project. A tax increment financing application filed in March lists HAB Development as the applicant, with HomeFront CEO Patti Webster, Springer Group Architects of Bozeman as the architect and Knife River of Billings as the contractor (City of Billings). The site covers about 4.4 acres. The application puts construction at about $13.4 million, plus about $2.5 million in site improvements and $600,000 for land, and estimates 45 to 60 construction jobs.
The plans include three single-family models from 1,299 to 1,378 square feet, plus duplex and triplex units. A South Billings Boulevard urban renewal advisory committee recommended about $1.34 million in TIF for the project in April, which is about 10% of the cost (City of Billings). KTVQ reported in April that the project was set to break ground the following week.
There's a small discrepancy on bedrooms. The governor's office and Northern News describe two- and three-bedroom homes, while the city documents from this spring describe three-bedroom homes with two-car garages.
Why it matters for Contractors
Programs like this one come down to one thing: someone has to build the homes. John Dunlap of CRILOGISTICS, which advises HABCRO, told Northern News the homes affordable to these buyers "just don't exist" in much of Montana, which is why the program pairs mortgage help with new construction.
HABCRO's first two Billings subdivisions, South Hills Commons and Castle Commons, total 65 homes, and it's talking with other counties about what comes next. For small builders around the state, that's a signal worth watching. If your county has joined a community reinvestment organization, find out whether it's planning homes, what price points it needs to hit, and whether it's bringing in local builders.
Expect tight budgets. Homes sold well below market leave little room for upgrades, so efficient, simple plans like the 1,300-square-foot models here are the likely template. And watch the workforce side too. Schomer said in the governor's release that meeting construction demand also takes skilled carpenters, plumbers and electricians.