Loading...
HomeMy WebLinkAboutWARD Presentation 2025-10-4O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Thought Leadership •Focused on the cross-section of WARD and affordable housing development •Examining three affordable housing projects in Bozeman. •The policy analysis also provided an extensive list of affordable housing tools identified by the RHC. •Based on extensive experience of local affordable housing practitioners and the Gallatin County Planning Department, interviews with local stakeholders, information provided by the authors of WARD, and national research from trusted entities. •The RHC approved the RHC WARD Policy Analysis on September 25. RHC WARD Policy Analysis Water Adequacy for Residential Development Water Adequacy for Residential Development: The initiative requires developers of projects with three or more units who pay Cash-in-Lieu of Water Rights (CILWR)to provide 33%of those units at below-market rates. The CILWR option is used by almost all new residential developments in Bozeman (98-99%). What is WARD? O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG What is the biggest barrier to affordable housing development? O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG The Capital Gap 2-Bedroom Townhome, 1,200 Sq Ft, 1-Car Garage Real figures from a below-market home in the Bridger View Neighborhood. O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Key Findings from Local Experts •Capital gaps exist across project types and target incomes, whether an ownership product targeting households between 80 -120% AMI, or a below-market rental project serving households under 60% AMI. •Hard subsidies (in the form of land and grants – usually both) are required to make below-market projects financially feasible. •For mixed-income projects, profits from market-rate units are not sufficient to subsidize a significant number of below-market units. O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Key Findings from National Experts •Local affordability requirements that are not finely tuned can slow housing production and lead to increased prices across the housing spectrum. •Impacts both market-rate housing and affordable housing. •Leading national housing research institutions (e.g. Berkeley’s Terner Center for Housing Innovation and George Mason’s Mercatus Center) O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Likely Impacts Within Bozeman •A policy that mandates a high level of affordability without providing subsidies that make it possible will make most market-rate development in Bozeman financially unfeasible, increasing housing costs across the board once the current vacancy rate drops. •If market-rate projects are not financially feasible under WARD's affordability requirements, then the affordable units that WARD mandates in those projects will not be built. •At the same time, increased housing costs would likely create increased demand for below-market housing, making it even harder for below-market housing developers to meet the community’s affordable housing needs. O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Likely Impacts Outside of Bozeman •As WARD would make development in the City of Bozeman more difficult, development in the county would become more attractive. •County infrastructure and services are not designed to accommodate rapid growth, and piecemeal development would likely lead to increased sprawl. •New wells and septic systems can significantly impact the Gallatin Valley’s water quality and quantity, and increased sprawl poses a threat to agriculture and wildlife. Other Policy Tools for Affordable Housing O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Tools for Local Governments •Make publicly-owned land available for below-market housing development. (e.g. the City of Bozeman’s Fowler project and Gallatin County’s Hidden Creek development) •Use incentive programs, like the current Affordable Housing Ordinance, which offers developers additional building height in exchange for a percentage of below-market units. •Allocate additional resources to below-market housing through local government budgeting. •Connect public infrastructure investments to affordability requirements, similar to what was done in Big Sky with their water/sewer district expansion. O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Tools Via Ballot Measure •Pass a levy or bond issue to create a new, reliable source of funding for below-market housing projects. O NE V A L L E Y . O RG/ R E GI O NA L H OU SI NG Tools Requiring State-Level Change •Create a state-level Low Income Housing Tax Credit (LIHTC) program. Legislation to create such a program was vetoed by the Governor in 2023, and was tabled in a legislative committee in 2025. •Allow communities with high tourism to implement a local-option sales tax and use the revenue for housing. •Allocate a portion of existing statewide bed tax or rental vehicle tax revenue to localized housing funds. There is no silver bullet, but deploying a variety of tools can have a big impact. Questions? Mark Bond One Valley Community Foundation mark@onevalley.org 406.587.6262 Scan to read the full RHC WARD Policy Analysis