Council approves $750,000 CDBG award to Homeward for Sage Towers rebuild with monitoring and payback conditions

The City Council approved $750,000 in Community Development Block Grant funds to Homeward for rehabilitation of Sage Towers, an 81‑unit senior and disabled housing property in downtown Billings.

Public commenters had urged council to deny the request, citing prior reports of bed‑bug and other pest infestations and concerns that the nonprofit owner had not adequately remediated conditions. Homeward’s executive director, Cararissa Trujillo, told council Homeward acquired the property in 2019, immediately commissioned building‑wide pest treatments and hired third‑party cleaning and pest‑control contractors; the owner also has implemented ongoing monthly treatments and unit‑by‑unit interventions where needed.

To address public concern, the council approved terms that include monitoring and reporting requirements: Homeward will submit routine reports on pest control and property standards, staff will conduct periodic inspections, and the funding will carry a 15‑year conditional repayment mechanism secured by deed restriction and a trust indenture. Under that arrangement the CDBG assistance functions as a conditional loan that converts to a grant only if Homeward complies with monitoring and housing‑quality standards during the compliance period; failure to comply can trigger repayment.

Homeward said the larger capital stack for the project depends on multiple funding sources and low‑income housing tax‑credit mechanics; staff and Homeward described the award as part of a broader rehabilitation effort (roof, windows, mechanicals and common‑area work) that they expect to complete in 2027.

Council approved the award after discussion of oversight and the property manager’s role, and multiple councillors urged Homeward to consider changing property management practices. The council vote was in favor.

Next steps: Homeward will begin the planned remediation and capital work on a schedule coordinated with city monitoring, and staff will report on compliance as required by the approved loan/grant documents.