Council approves $1.339 million TIF participation for workforce homeownership project in South Billings

The council on May 11 approved tax‑increment financing assistance up to $1,339,276 for South Hills Commons, a 35‑home workforce homeownership project in the South Billings renewal district.

Project proponents explained the Montana Community Reinvestment Plan (MCRP) financing model, which pairs state‑administered down‑payment/mortgage buy‑down funds with local capital to offer discounted purchase prices and lower monthly payments to households earning roughly 60–140% of area median income. The developer said a $400,000 home under the program can be offered with no down payment and a mortgage payment capped at about 30% of income, producing materially lower monthly costs when compared with market financing.

The advisory committee reviewed the applicant’s request for roughly $2.49 million in TIF‑eligible expenses and recommended a reduced award equal to about 10% of project cost. Council debate focused on public engagement and neighborhood notice; several council members urged better local notification for projects that use public funding streams. After discussion the council approved the advisory committee recommendation (1.339M); a minority of council members voted no.

The developer and advisory committee said the project will create permanent deed‑restricted attainable homes and generate new taxable property value once built and sold; they described the award as infrastructure participation to enable buildout and to leverage state MCRP mortgage resources.

The city will finalize a reimbursement agreement and monitor construction and buy‑down payments as homes are completed and sold; TIF reimbursement is conditioned on verified eligible infrastructure costs and project performance.