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HomeMy WebLinkAbout03-22-26 Public Comment - T. Friedlund - RE_ Rocky Mountain Flats – Follow-Up and Request for Implementation Transparency with Staff Response From: Tammy Friedlund To: Erin Georae Cc: Bozeman Public Comment; Brit Fontenot;David Fine; Bailey Minnich Subject: [EXTERNAL]RE: Rocky Mountain Flats—Follow-Up and Request for Implementation Transparency Date: Sunday,March 22,2026 11:57:14 AM CAUTION:This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi Erin, Thank you for your detailed response and for clarifying the City's role within the site plan approval process. I understand that the project has been approved based on code compliance and that conditions of approval cannot be modified at this stage. Given that, I would like to focus on gaining a clearer understanding of the underlying zoning framework and how implementation will be managed moving forward. Specifically, I would appreciate clarification on the following: • When was this property designated for high-density zoning, and when did it transition from R-4 to R-C? • Was this change applied through annexation,the recent development code update, or another process? • What public notice and opportunity for input were provided to adjacent property owners at the time of that zoning designation or change? • What criteria were used to determine that R-C zoning is appropriate for this location adjacent to established single-family neighborhoods? From a resident perspective,this raises a broader concern: if meaningful public input is Limited to long-range planning processes that many residents are not aware of, and not at the point when development directly impacts adjacent neighborhoods, it creates a disconnect between the process and the community it affects. Based on the project materials and review documents, it appears that several items were unresolved or deferred at the time of approval.To better understand how these will be addressed, I respectfully request: • A complete list of all conditions of approval • Identification of any items that remained outstanding at the time of approval • Confirmation of which items must be fully satisfied prior to: • Building permit issuance • Construction commencement • Certificate of occupancy As this project moves forward, I would also appreciate guidance on how adjacent property owners can remain informed during permitting and construction, including: • Opportunities for public visibility into permit approvals • Timing of infrastructure improvements (roads,water, stormwater, etc.) relative to occupancy • Points of contact for reporting issues during construction Given the scale and location of this development, understanding how infrastructure, safety, and environmental considerations will be addressed in the next phases is important for surrounding residents. My goal is to remain informed and engaged as the project progresses and to better understand how the City ensures that approved projects are implemented in a way that aligns with both code requirements and real-world conditions on the ground. Thankyou again foryour time and consideration. Sincerely, Tammy Friedlund Meadow Creek Homeowner Bozeman, Montana From: Erin George<Erin.George@bozemanmt.gov> Sent: Friday, March 20, 2026 4:05 PM To:Tammy Friedlund <tammy@proper.insure> Cc: Bozeman Public Comment<comments@bozemanmt.gov>; Brit Fontenot <Brit.Fontenot@bozemanmt.gov>; David Fine <David.Fine@bozemanmt.gov>; Bailey Minnich <Bailey.Minnich@bozemanmt.gov> Subject: Re: [EXTERNAL]Rocky Mountain Flats— Introduction and Follow-Up on Public Funding, Timeline, and Implementation Considerations Hi Tammy, Thanks for taking the time to compile the email below.The public comment period for the Rocky Mountain Flats site plan has closed, and the site plan was approved.We reviewed and considered all comments received during the comment period, and issued the decision based on findings of code compliance, notjust by Planning staff but also staff in Engineering, Transportation, Utilities, Fire, Parks, Stormwater, Solid Waste and Water Conservation to name a few. Please see the staff report posted online via the CD Web Viewer for a summary of staff's review and findings. If you want to understand in more detail the various elements reviewed,you could also review the Bozeman Municipal Code sections cited throughout the report. We are not able to add, remove, or alter conditions of approval after a decision is issued, and we cannot require applicants to do anything that exceeds the requirements of Bozeman Municipal Code.We do, however,thank you for the feedback. I understand you were connected with the City Clerk's Office to submit a public records request to obtain the documents you were looking for.They can help if you have any questions about that process or the status of your request. I also want to share that the City is not allowed by State Law to regulate property maintenance when it comes to buildings.The state of Montana has specifically prohibited cities from adopting the International Property Maintenance Code. So once the project is built, if there are concerns about maintenance you will need to contact property management for the facility itself. Regarding the financing, I asked David Fine in Economic Development to provide additional information on how that process works, as the Affordable Housing Ordinance is administered by their Dept. I'm including his words here for your information: My understanding is that the MT board of housing approves tax credit allocations on a semi- annual cycle. This process is separate and discrete from the city's zoning review. There is no state process I know of that distinctly notifies adjacent property owners and gives them the opportunity to comment on these projects. The Montana Board of Housing takes public comment from anyone during their noticed and regularly scheduled meetings. The Public Hearing we hold is required as one small part of the financing process and it is not for the MT Board of Housing. The hearing is required as part of the tax exemption process managed by the Montana Department of Revenue. I have never heard of an applicant being denied during that process, and the City Commission has no action to take. We simply host the public hearing. We will notice and reschedule that public hearing if the applicant requests it. Regarding your requests at the end of your email relating to response to complaints and parking enforcement,the City of Bozeman Neighborhood Services Dept handles all code violation and parking complaints and does have both code enforcement officers and parking enforcement officers on staff. However,they only enforce parking on public streets. Once the project is built, parking complaints can be filed online here.There is a separate webpage for Code Compliance that includes a link for online complaints, a phone number and info regarding common issues. I hope this information is helpful and you're enjoying our early spring weather! Sincerely, Erin George Director I Community Development City of Bozeman 20 East Olive St. I P.O. Box 1230 1 Bozeman, MT 59771 P:406.582.2260 E: egeorQe(abbozeman.net From: Tammy Friedlund <tammy(@proper.insure> Sent: Thursday, March 19, 2026 8:49 AM To: Erin George <Erin.George(@bozemanmt.gov>; Brit Fontenot <Brit.FontenotC@bozemanmt.gov>; csanders(@bozeman.net <csanders(@bozeman.net> Cc: Planning<planning(@bozemanmt.gov>, Bozeman Public Comment <comments(@ bozemanmt.gov> Subject: [EXTERNAL]Rocky Mountain Flats— Introduction and Follow-Up on Public Funding, Timeline, and Implementation Considerations CAUTION:This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello, My name is Tammy Friedlund, and I am a homeowner in the Meadow Creek neighborhood directly adjacent to the Rocky Mountain Flats development. I am reaching out to introduce myself and share concerns regarding this project as it moves forward. I appreciate the City's efforts to address housing needs and understand the importance of workforce and affordable housing within our community. My intent is not to oppose development, but to ensure that this project is implemented in a way that is compatible with the surrounding neighborhood and does not create avoidable long-term impacts. I would also like to share additional information I recently reviewed that I believe is important context. Based on materials from the Montana Board of Housing, key financing components for this project were approved well in advance of the public notice period for the site plan. Specifically, a Multifamily Program Loan was approved in February 2025, and a bond resolution authorizing up to $73,000,000 in financing was approved on July 14, 2025. Given that the public comment period for the site plan occurred January 12 through February 3, 2026, this suggests that significant financial commitments and project advancement occurred prior to adjacent property owners being notified or having an opportunity to comment. Additionally, residents were informed that financing was not yet finalized and that a hearing was scheduled for March 10, 2026, which appears inconsistent with the timing of these earlier approvals. I share this to better understand how project sequencing, notice, and public input are coordinated for developments of this scale. Given the level of public investment and the granting of cost waivers,it is reasonable to expect that this project meets a higher standard for infrastructure readiness, safety, and long-term performance. With that in mind, I respectfully request that the following items be carefully addressed during permitting, construction, and implementation: 1. Parking and Spillover Impacts The proposed parking ratio (222 spaces for 296 units) does not appear sufficient for this location. Given limited transit access, it is reasonable to expect reliance on personal vehicles. A defined parking enforcement and overflow mitigation plan is needed to protect adjacent neighborhoods. 2. Traffic and Safety Increased density will significantly impact traffic along Stucky Road, Fowler Avenue, and nearby residential streets. I have requested the traffic study for review and would appreciate the opportunity to evaluate the assumptions used. There are currently no bike lanes or safe shoulders, and these roads are already hazardous, particularly during winter months. Safety mitigation measures are critical. 3. Neighborhood Compatibility and Scale The scale and height of the proposed buildings differ from surrounding single-family homes and existing 2-3 story residences. Consideration should be given to buffering, landscaping, lighting controls, and design transitions to better align with the existing neighborhood. 4. Infrastructure Alignment Infrastructure improvements should be aligned with occupancy to prevent strain on existing systems. Current conditions already present challenges, and additional density will increase that burden if not addressed. 5. Water Capacity and Pressure Meadow Creek already operates under water restrictions, and residents experience low water pressure. A clear analysis of system capacity and any required upgrades should be provided and completed prior to occupancy. 6. Wildlife Corridor Impacts This area functions as a wildlife corridor. I respectfully request access to any wildlife analysis conducted and that mitigation measures such as open space planning and lighting controls—be incorporated. 7. Public Safety Services (Law and Fire) A development of this scale will increase demand on police, fire, and emergency services. It is important to confirm that adequate service capacity and response times will be maintained. 8. Property Management Accountability The long-term success of this development will depend heavily on property management. Based on publicly available information and feedback from similar developments, concerns have been raised regarding maintenance standards, responsiveness, and long-term upkeep. I respectfully request that the City require: • Defined maintenance standards • Timely response requirements for complaints • Parking and nuisance enforcement • Clear accountability mechanisms While I understand the project has been approved, I believe this is an important opportunity to ensure that implementation is done thoughtfully and responsibly for both future residents and the existing community. I appreciate your time and consideration and would welcome any opportunity to better understand how these concerns are being addressed. Sincerely, Tammy Friedlund Meadow Creek Homeowner Bozeman, Montana COMMERCE MONTANA BOARD OF HOUSING Board Agenda Item Board Meeting: July 14, 2025 Multifamily Program BOND RESOLUTION NO. 25-0714-MF07 APPROVAL Rocky Mountain Flats in Bozeman, MT Background: Rocky Mountain Flats is a 296-unit family project located in Bozeman, MT. This is a new construction project costing approximately $371,872.70 per unit. Blueline Development Inc. is the developer and is requesting a bond amount not to exceed $73,000,000. This amount includes the buffer. Unit AMI's will target 30 - 80% AMI. Blueline Development Inc. has officially requested a cost per unit waiver as $371,872.70 per unit is slightly above the applicable 2026 QAP's $365,000 per unit limitation. However, the amount is lower though than the $395,000 per unit being discussed in the 2027 QAP revision workshops. The project has $1,058,000 earmarked in MERA Other Eligible Uses funds. Additionally, the Board approved a $2,200,000 Multifamily Program Loan for Rocky Mountain Flats in February 2025. Montana Department of Commerce I commerce.mt.gov I Montana Board of Housing P.O. Box 200528 1 Helena, MT 59620-0528 1 Phone: 406-841-2840 1 Fax: 406-841-2841 Montana Relay 711 : dphhs.mt.gov/detd/mtap/traditionalrelayservice 121 OPPJ R TIUI IW COMMERCE MONTANA BOARD OF HOUSING Staff Recommendation (if any): Staff supports the proposal noted above. Motion Option(s): Move to approve bond resolution no. 25-0714-MF07 in the amount not to exceed $73,000,000. By approving this bond resolution, the Board is also approving the cost per unit waiver with current per unit costs at $371 ,872.70. No motion, proposal fails. Montana Department of Commerce I commerce.mt.gov I Montana Board of Housing P.O. Box 2005281 Helena, MT 59620-0528 1 Phone: 406-841-2840 1 Fax: 406-841-2841 Montana Relay 711 : dphhs.mt.gov/detd/mtap/traditionalrelayservice 121 OPPJ NIW RESOLUTION NO. 25-0714-MF 07 A RESOLUTION OF THE MONTANA BOARD OF HOUSING MAKING FINDINGS WITH RESPECT TO HOUSING NEEDS WITHIN MONTANA; APPROVING A BORROWING, AND REPAYMENT THEREOF, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $73,000,000; APPROVING THE FORM OF CERTAIN FINANCING DOCUMENTS AND OTHER RELATED DOCUMENTS; AUTHORIZING THE EXECUTION OF SUCH DOCUMENTS; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO. WHEREAS, the Montana Board of Housing (the "Board") is authorized pursuant to the Montana Housing Act of 1975, Montana Code Annotated, Sections 90-6-101 through 90-6-127, as amended (the "Act"), to borrow and issue evidences of indebtedness concerning repayment thereof and to make loans and purchase mortgage loans in order to finance housing which will provide decent, safe and sanitary housing for persons and families of lower income in the State of Montana; and WHEREAS, the Board intends to borrow on a non-recourse limited obligation basis from JPMorgan Chase Bank, N.A. (or such other financial institution as is approved by the Chair, Vice Chair or Executive Director and Treasurer) (the"Funding Lender") an aggregate principal amount not to exceed $73,000,000, the proceeds of which will be used to finance a mortgage loan for the acquisition, construction and equipping of the Rocky Mountain Flats, an affordable housing development consisting of 296 units located in Bozeman, Montana (the "Project"); and WHEREAS, the borrowing by the Board will be pursuant to a Funding Loan Agreement among the Board, the Funding Lender and U.S. Bank Trust Company, National Association (or such other financial institution as is approved by Borrower, Funding Lender and the Chair, Vice Chair or Executive Director and Treasurer) (the"Fiscal Agent")(the"Funding Loan Agreement"), and the agreement to repay such borrowing shall be reflected in a non-recourse revenue multifamily note(the"Note")to be issued to the Funding Lender pursuant thereto,which Funding Loan Agreement and Note will be in substantially the form on file with the Multifamily Program Manager with such changes, additions, omissions as approved by an authorized officer; and WHEREAS, the proceeds of the borrowing will be used to finance a loan (the "Loan") to Rocky Mountain Flats, LLLP, a Montana limited liability limited partnership, or a similar affiliate of B1ueLine Development,Inc. (the"Borrower"),pursuant to a Borrower Loan Agreement,by and among the Board, the Fiscal Agent, the Funding Lender, and the Borrower (the "Borrower Loan Agreement"), which will be in substantially the form on file with the Multifamily Program Manager with such changes, additions, omissions as approved by an authorized officer; and WHEREAS, upon the satisfaction of certain conditions to conversion set forth in a Construction Phase Financing Agreement by and among the Borrower, JPMorgan Chase Bank, 4899-3478-7401.3 N.A., in its capacity as the permanent bondholder ("the Permanent bondholder"), and U.S. Bank, National Association, in its capacity as trustee (the "Trustee"), the Project shall convert to the permanent phase and the borrowing by the Board, as evidenced by the Note, shall be replaced by to the Montana Board of Housing Multifamily Housing Revenue Bonds (Rocky Mountain Flats Project) (the "Bonds," and together with the Note, the "Obligations"); and WHEREAS, the Bonds will be issued pursuant to a Permanent Trust Indenture (the "Indenture"), between the Board and the Trustee, which will be in substantially the form on file with the Multifamily Program Manager with such changes, additions, omissions as approved by an authorized officer, whereby the Board would be authorized to issue the Bonds subject to the terms, conditions and limitations established herein and in the Indenture; and WHEREAS, the proceeds of the Bonds will be used to finance a loan to provide funds to replace the Note, pursuant to a Permanent Financing Agreement by and among the Board, the Trustee and the Borrower(the"Financing Agreement"),which will be in substantially the form on file with the Multifamily Program Manager with such changes, additions, omissions as approved by an authorized officer; and WHEREAS, the interest on the Obligations is intended to qualify for a federal tax exemption under Section 142 of the Internal Revenue Code of 1986 (the "Code"), and to ensure that the Obligations maintain their tax exempt status, the Borrower will enter into a Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement"), which will be in substantially the form on file with the Multifamily Program Manager with such changes, additions, omissions as approved by an authorized officer. NOW, THEREFORE,BE IT RESOLVED BY THE MONTANA BOARD OF HOUSING AS FOLLOWS: Section 1. Public Hearing and Findings. (a) The Board hereby finds and determines that the Project financed through the above described borrowing and issuance of the Obligations constitutes a "housing development"within the meaning of Section 90-6-103(8) of the Act; and (b) In accordance with Section 90-6-109 of the Act, following a public hearing, the Board finds: (i) that there exists a shortage of decent, safe and sanitary housing at rentals or prices which persons and families of lower income can afford within the general housing market area to be served; (ii) that private enterprise has not provided an adequate supply of decent, safe and sanitary housing in the housing market area at rentals or prices which persons or families of lower income can afford or provided sufficient mortgage financing for homes for occupancy by persons or families of lower income; 4899-3478-7401.3 2 (iii) that the conditions, restrictions and limitations contained in the Funding Loan Agreement and contained in the program documents relating to the mortgage loan financed thereby and to be financed are sufficient to ensure that the Project will be well planned and well designed so as to constitute decent, safe and sanitary housing and that the "housing sponsors" (as defined in Section 90-6-103(10) of the Act) are financially responsible; (iv) that the Project to be financed which is referred to in paragraph (a) above will be of public use and will provide a public benefit, taking into account the existence of local government comprehensive plans,housing and land use plans and regulations, area-wide plans and other public desires; (v) that the Project to be financed with the proceeds of the Obligations does not involve the construction of"second homes,"which are defined in the Act to mean homes which would not qualify as the primary residence of the taxpayer for federal income tax purposes relating to capital gains on the sale or exchange of residential property; and (vi) that if the mortgage loan constitutes a direct loan,in accordance with Section 90-6-109(1)(f), by virtue of the Board effectuating the loan of the Obligation proceeds to the Borrower pursuant to the Project Loan Agreement, the Project qualifies for federal funds through its receipt of 4% federal low-income housing tax credits. Section 2. Approval of Funding Loan Agreement. The Funding Loan Agreement is hereby approved in the form hereinabove described, and the Chair,the Vice Chair or the Executive Director and Treasurer of the Board (each an "Authorized Officer") is hereby authorized and directed to execute and deliver the Funding Loan Agreement, with such changes, insertions or omissions therein as may be approved by such signatory, such approval to be evidenced conclusively by such execution of the Funding Loan Agreement. Section 3. Authorization and Execution of the Obligations. The execution and delivery of the Board's Obligations to the Funding Lender and Permanent Bondholder are hereby authorized and approved. The final amount and terms of the Obligations shall be determined by an Authorized Officer, consistent with the terms of the Funding Loan Agreement and subject to the following conditions. The Obligations shall not be general obligations of the Board but shall be limited non-recourse obligations payable solely and only from mortgage loan payments and any other moneys pledged under the Funding Loan Agreement by the Borrower as required by the Funding Loan Agreement. The Obligations shall mature no later than 40 years from their date of issuance, bear interest at a fixed or floating rate no greater than the net rate paid on the mortgage loan(i.e.,net of fees due to the Board and any other parties),be in a principal amount not to exceed $73,000,000,be subject to prepayment and have the other terms and provisions as described to the Board, and definitively set forth in the Funding Loan Agreement upon execution and delivery as aforesaid in Section 2 hereof. The Obligations shall be executed and delivered substantially in the form set forth in the Funding Loan Agreement, with such additions, omissions and changes as are required or permitted by the Funding Loan Agreement and approved by the signatories thereto. The Obligations shall be executed in the name of the Board by the Chair or the Vice Chair of the 4899-3478-7401.3 3 Board, and attested to by the Secretary or the Treasurer, each of whom is hereby appointed as an Authorized Officer (as such term is defined in the Funding Loan Agreement) for purposes of executing and attesting the Obligations, and their execution shall evidence their approval of the final terms thereof. Such signatures may be by facsimile;provided,however,that such Obligations shall not be valid or obligatory for any purpose unless the attestation by the authorized officer of the Board shall be a manual signature or the Obligations are authenticated by the manual signature of an authorized officer of the Fiscal Agent. Section 4. Approval of Funding Loan Agreement. The Funding Loan Agreement is hereby approved in the form hereinabove described, and an Authorized Officer is hereby authorized to execute and deliver the Funding Loan Agreement, with such changes, insertions or omissions therein as may be approved by such person, such approval to be evidenced conclusively by such execution of the Funding Loan Agreement. Section 5. Approval of Regulatory Agreement. The Regulatory Agreement is hereby approved in the form hereinabove described, and an Authorized Officer is authorized and directed to execute and deliver the same, with such changes, insertions or omissions therein as may be approved by such person, such approval to be evidenced conclusively by such execution of the Regulatory Agreement. Section 6. Ratification of Prior Actions. All action previously taken by the officers, members or staff of the Board within the authority granted herein, with respect to the Funding Loan Agreement, the Borrower Loan Agreement, the Regulatory Agreement and the Obligations are hereby approved, confirmed and ratified. Section 7. Execution of Documents. In the event of the absence or disability of an Authorized Officer, or if for any other reason any of them are unable to execute the documents referred to in this Resolution, such documents may be executed by another member of the Board or by the Multifamily Program Manager or the Accounting and Finance Manager, with the same effect as if done by an Authorized Officer and without the further authorization of the Board. The execution of such documents by such member shall be conclusive evidence of his or her authority to so act. Section 8. Execution of No-Arbitrage Certificate. An Authorized Officer is hereby authorized to issue certifications as to the Board's reasonable expectations regarding the amount and use of the proceeds of the Obligations as described in Section 148 of the Code, as amended. Section 9. Additional Actions Authorized. The Chair, the Vice Chair, the Secretary or any other member of the Board, and the Executive Director and Treasurer, the Multifamily Program Manager and the Accounting and Finance Manager, acting alone or acting with others, are hereby authorized and directed to execute and deliver any or all other documents which may be required under the terms of the Funding Loan Agreement and the Borrower Loan Agreement, and to take such other action as may be required or appropriate for the performance of the duties imposed thereby or to carry out the purposes thereof, and the members and officers named above are hereby designated as Authorized Officers for such purposes. With respect to the issuance of the Obligations authorized by this Resolution, such Authorized Officers are also authorized, with the advice of General Counsel or Bond Counsel, to interpret and apply the Board's Policy for 4899-3478-7401.3 4 Conduit Multifamily Housing Revenue Bonds (the "Policy") and to waive any requirement of the Policy to the extent such interpretation, application or waiver is consistent with the purpose of the Policy. Section 10. Effective Date. This Resolution shall become effective immediately. [Remainder of Page Intentionally Left Blank] 4899-3478-7401.3 5 ADOPTED by the Montana Board of Housing this 14th day of July, 2025. MONTANA BOARD OF HOUSING By Attest: Bruce Posey, Chair By Cheryl Cohen, Executive Director 4899-3478-7401.3 BLUELINE BlueLine Development, Inc. is proposing the new construction of Rocky Mountain Flats, a 296-unit multi-family development in Bozeman. The development will be 100%affordable and will offer units to tenants with incomes ranging from 30% AMI to 80%AMI. Rocky Mountain Flats will be comprised of 1-, 2-, 3-, and 4-bedroom units. By offering units with 3 and 4 bedrooms, the development will help meet an unaddressed need in the community: affordable housing for larger families with children. Rocky Mountain Flats is committed to maintaining affordability levels for at least 50 years. Rocky Mountain Flats will offer amenities, conveniences, and building features comparable to market rate rental properties in the Bozeman community. The development will have a modern design while being constructed with time-tested materials that will withstand the Bozeman climate. The development team is committed to including energy efficient upgrades, which will require building features that reinforce energy and building efficiencies such as lower U-valued windows, efficient heating systems, and increased insulation R-values. These added features will provide a more sustainable development and grant tenants a reduction in energy costs. Each unit will be equipped with in-unit washer and dryers, dishwashers, microwaves, fiber or similar wiring for internet, LED lighting, and private decks and patios. The development will offer a community room/building that will include a full kitchen for group use.Also, the property is adjacent to a large public park that will provide a safe space for children to play outdoors. Rocky Mountain Flats will be in a residential area close to all the amenities and employment opportunities the City of Bozeman has to offer. The site is roughly 10-acres and located on the south side of Bozeman at 5532 Fowler Lane. At this time, the property is zoned within Gallatin County zoning district and is currently undergoing annexation into Bozeman city limits. The property will also achieve R-5 zoning (or a zoning district that allows for the intended density) concurrentwith annexation into the City of Bozeman. Intrisik Architects have been engaged by the seller of the property to manage the zoning and annexation of the property. Annexation and zoning are scheduled to be in place on or before November 2024, and the development team does not expect any construction delays associated with achieving annexation or zoning. In 2019,the City of Bozeman conducted a community housing needs assessment and it recommended that the city would need approximately 6,340 additional housing units by 2025 to address the current community need, with about 60% or 3,765, affordable housing units. In recent years, progress has been made with 592 affordable housing currently under construction out of 1 ,700 total units in the community; however, these figures fall far short of the overall community need. Like many Montana communities, Bozeman has experienced dramatic population growth from 2020 to 2024, which is estimated to be 8.33%overthe four-year span.While the community has grown,housing development has not matched that speed of growth, which has contributed to the upward pressure on housing costs. In a market study conducted by Prior and Associates, it was determined that the City of Bozeman has an overall vacancy rate of 4.1% and 1.6% in LIHTC properties. With the scale proposed at Rocky Mountain Flats, this development will have a significant effect on the affordable housing need and leave a meaningful impact on the community. Rocky Mountain Flats will offer 16 units set at 30%of Area Median Income, including two 1-bed units, eight 2-bed units, four 3-bed units, and two 4-bed units. The development is working with Montana Department of Commerce to commit 811 project-based vouchers for all 30% AMI units. The development team is committed to providing housing for those individuals living with disabilities. BlueLine Development is proposing to partner with a local non-profit company and has been in discussions with Greater Impact, Inc. Greater Impact has a strong outreach and focuses on important BLUELINE .- community needs including recovery programs, housing needs and educational programs. Greater Impact will operate as a service provider for the property, as well as a referral source for potential tenants. The development will provide space in the community building for Greater Impact to provide tenant services such as group meetings, counseling, and/or life-skill classes. Partnering with a local non-profit will ensure that the development benefits a broad range of community members that are currently underserved in Bozeman. BlueLine is proposing to use LIHTC, MERAfunds, and City of Bozeman funds to successfully complete and operate Rocky Mountain Flats. This funding combination is essential to the project's success. Rocky Mountain Flats is providing 296-unitswith 30-80%rent levels and anticipating high construction costs due to the current market; therefore, these funding programs provide essential equity during the construction phase and the critical lease-up period. The total development cost of Rocky Mountain Flats is projected to be about$104,755,000, and this proposal will require various funding sources. The development is eligible for approximately $4,634,864 in annual tax credits and based on credit pricing of$0.88, this equates to approximately $40,782,721 in direct equity investment, or approximately 39% of the total development costs (See Equity LOIs in Tab 8). Based on the total projected project costs, Rocky Mountain Flats will require approximately$16 million in gap financing. Without commitments of LIHTC and other gap financing, the development of Rocky Mountain Flats is not financially viable with rent restrictions. BlueLine Development, Inc. is the developer and sponsor of Rocky Mountain Flats. BlueLine Development has been consulting and developing affordable housing since 2011 and is currently constructing one development in Montana, Riverview Apartments, an affordable project in Big Sky. The BlueLine Development team is also developing affordable housing units in Colorado, Utah, South Dakota, North Dakota, New Mexico, and Wyoming. Of these out of state projects, BlueLine owns development in Utah, South Dakota and Wyoming, and has partnered in the ownership of several Colorado developments to provide financial guarantees for small non-profits. BlueLine is a consultant on the remainder of the developments. In addition to Low Income Housing Tax Credits, BlueLine has used HOME funds, Rural Development loan guarantees, 1602 Tax Credit Exchange Funds, NAHASDA, Tax Credit Assistance Funds, Minnesota state deferred loans and many other conventional financing methods. BlueLine Development has successfully developed or consulted on the development of 50+ federally compliant projects, using a multitude of LIHTC, HOME, and NHTF funds, and should be considered a low-risk developer. Rocky Mountain Flatswill provide safe and affordable housing for many tenants,significantly impacting the City of Bozeman. The development will offer a range of units from one to four bedrooms while offering rents set at 30% to 80% of area median income. Based on the assumption of 1.5 people per bedroom and the unit mix at Rocky Mountain Flats, this development will positively impact 1,128 people, having a great impact and a long-lasting positive influence on the community. Sincerely, Jason Boal Blueline Development, Inc. 406-214-4788 jason@bluelinedevelopment.com MARKET STUDY SUMMARY Market Study Company: Prior&Associates Project Name: Rocky Mountain Flats Project Market Area: Bozeman & Surrounding Unincorporated Lands Is the project, as proposed, viable? YES Average (comparable/acheivable) market unit rents in immediate area and the percent the proposed project rents are below these rents. Market Rents % Project Rents Below 0 bedroom 1 bedroom $ 1,797 16.4% 2 bedroom $ 2,007 10.4% 3 bedroom $ 2,339 11.3% 4 bedroom $ 3,200 27.8% Reference page: 5 bedroom r I73 #of all New Units Needed: 2,787 Reference page: 61 #of units needed for the targeted AMI of the project: 2,787 Reference page: 61 Vacancy Rate: 4.1% Reference page: 55 Months to Lease-up: I10 Reference page: 62 Capture Rate: 10.6% Reference page: 61 (projected income eligible tenants who will move in next year/proposed units) Absorption Rate: 1 44.8% Reference page: 61 (proposed units/existing LIH, market area units required) Penetration Rate: 4.2% Reference page: 62 (existing LIH units/total eligible households) Number of LI households that can afford rent of proposed project: 8,446 Reference page: 61 Distance (miles)to: (only fill this out at full market study) 2 miles to grocery store (convenience store does not count) 1 miles to medical services appropriate and available to all prospective tenants (e.g., hospital, doctor offices, etc.)and are one of the following: A Project is located within 1'/z miles of the specified amenity or essential service. II Public or contracted transportation (not including taxi or school bus service) is reasonably available to the specified amenity or service (i.e., the Project is located within '/4 mile of fixed bus stop or on a same day call basis) (or letter from provider committing to establish such service); or Where applicable, the specified amenity or service is available via a no-charge delivery service to the Project Location (all distances must be as specified in the Project's market study). All other services and distance to each. Other Service Distance mi 1 Convenience Store 2.1 Miles 2 Grocery Store 1.8 Miles 3 Specialty Market 2.0 Miles 4 Neighborhood Shopping Center 1.7 Miles 5 Community Shopping Center 2.0 Miles 6 Big Box Retail Store 4.1 Miles 7 Shopping Mall 2.1 Miles 8 Elementary School 2.3 Miles 9 Middle School 1.7 Miles 10 High School 2.9 Miles 11 Head Start 2.6 Miles 13 University 1.8 Miles 14 Recreation Center 3.6 Miles 15 Community Center 4.8 Miles 16 Park Adjacent 17 Library 3.7 Miles 18 Bus Stop 1.9 Miles 19 Hospital 3.6 Miles 20 Medical Clinic 2.0 Miles 21 Government Offices 3.6 Miles 22 Post Office 3.5 Miles 23 Police Station 2.4 Miles 24 Fire Station 1.8 Miles 25 Pharmacy 1.8 Miles 26 Senior Center 3.8 Miles 27 Childcare Center 2.4 Miles 28 Fire Station 2.4 Miles 29 Medical Offices 1.3 Miles 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1 1 1 1 Ill 1 B7 LN I�III■ 1 1 1 1 1 1 Itl G�•n ■17 ■iri _ �.I� l 51-11 =In _ 1n. I■IM I IP �a County Gallatin Project Name Rocky Mountain Flats Developer/General Ptnr BlueLine Development,Inc Set-aside - HC Requested 48,979,570 Project Type Family Construction Type - Projected Construction Start Oct-25 Projected Completion Dec-27 Unit Numbers Target 0-bdrm 20% - 0-bd rm 30% - 0-bd rm 40% - 0-bdrm 50%(Low HM) - 0-bd rm 50% - 0-bd rm 60% - 0-bd rm 70% - 0-bd rm 80% - 0-bd rm - 0-bd rm - 1-bd rm 20% - 1-bd rm 30% 2 1-bdrm 50%(Low HM) - 1-bd rm 40% 6 1-bdrm 50% 6 1-bdrm 60% 4 1-bdrm 70% - 1-bd rm 80% 2 1-bdrm - 1-bd rm - 2-bd rm 20% - 2-bd rm 30% 8 2-bdrm 40% 6 2-bdrm 50%(Low HM) - 2-bd rm 50% 38 2-bdrm 60% 38 2-bdrm 70% 16 2-bdrm 80% 26 2-bdrm - 2-bd rm - 3-bdrm 20% - 3-bdrm 30% 4 3-bdrm 40% 2 3-bdrm 50%(Low HM) - 3-bdrm 50% 20 3-bdrm 60% 54 3-bdrm 70% 6 3-bdrm 80% 22 3-bdrm - 3-bdrm - 4-bdrm 20% - 4-bdrm 30% 2 County Gallatin Project Name Rocky Mountain Flats Developer/General Ptnr BlueLine Development,Inc 4-bdrm 40% 4 4-bdrm 50%(Low HM) - 4-bdrm 50% 4 4-bdrm 60% 7 4-bdrm 70% 8 4-bdrm 80% 11 4-bdrm - 4-bdrm - other 20% - other 30% - other 40% - other 50%(Low HM) - other 50% - other 60% - other 70% - other 80% - other - other mkt - other mgr(60%) - Total Units 296 Average Income Targeting 60.00% Square Footage Income Restricted Units 234,400 Managers Unit(s) - Supportive Services - Common Space 51,680 Market/Commercial - Total 286,080 Unit Rents 0-bdrm 20% - 0-bd rm 30% - 0-bd rm 40% - 0-bdrm 50%(Low HM) - 0-bd rm 50% - 0-bd rm 60% - 0-bd rm 70% - 0-bd rm 80% - 0-bd rm - 0-bd rm - 1-bd rm 20% - 1-bd rm 30% 645 1-bdrm 40% 868 1-bdrm 50%(Low HM) - 1-bd rm 50% 1,091 1-bdrm 60% 1,314 1-bdrm 70% - 1-bd rm 80% 1,761 1-bdrm - County Gallatin Project Name Rocky Mountain Flats Developer/General Ptnr BlueLine Development,Inc 1-bdrm - 2-bd rm 20% - 2-bd rm 30% 762 2-bdrm 40% 1,030 2-bdrm 50%(Low HM) - 2-bd rm 50% 1,297 2-bdrm 60% 1,565 2-bdrm 70% 1,833 2-bdrm 80% 2,101 2-bdrm - 2-bd rm - 3-bdrm 20% - 3-bdrm 30% 866 3-bdrm 40% 1,176 3-bdrm 50%(Low HM) - 3-bd rm 50% 1,485 3-bdrm 60% 1,795 3-bdrm 70% 2,104 3-bdrm 80% 2,414 3-bdrm - 3-bdrm - 4-bdrm 20% - 4-bdrm 30% 955 4-bdrm 40% 1,301 4-bdrm 50%(Low HM) - 4-bdrm 50% 1,646 4-bdrm 60% 1,991 4-bdrm 70% 2,336 4-bdrm 80% 2,682 4-bdrm - 4-bdrm - other 20% - other 30% - other 40% - other 50%(Low HM) - other 50% - other 60% - other 70% - other 80% - other - other mkt - other mgr(60%) - Total Monthly Rents 500,811 vacancy factor 5.00% Adjusted Rent 475,770 other/commercial income 6,667 total rent 482,437 x 12 months 12 Total Annual Income 5,789,246 County Gallatin Project Name Rocky Mountain Flats Developer/General Ptnr BlueLine Development,Inc Expenses Administration 20,500 Management 282,403 Maintenance 553,122 Operating 464,347 Taxes - Replacement Reserve 103,600 Total Expenses 1,423,972 Net Income Before Debt Service 4,365,274 Financing Sources Hard Loan 56,078,000 Hard Loan 2,960,000 Soft Loan 2,200,000 Soft Loan 628,400 State HOME - State CDBG - State NHTF - Other 666,000 Other 799,200 Other 1,331,120 Other 652,800 Deferred Dev Fee 4,599,564 HC Equity Competitive - HC Equity Non-Competitive 40,159,233 Total Sources: 110,074,317 %of Project Financed by HC: 36.48% Return on Sale of HTC HTC Requested 48,979,570 HTC Equity 40,159,233 HTC Return on Sale 0.820 Ratios Rent(Income) 5,789,246 Operating Expenses 1,320,372 Replacement 103,600 Net Income 4,365,274 Total Debt Service 3,888,916 Debt Coverage Ratio(DCR) 1.12 Total Expense Ratio 1.09 Project Costs Land 9,000,000 Building/Acquisition - Site Work - County Gallatin Project Name Rocky Mountain Flats Developer/General Ptnr BlueLine Development,Inc Construction/Rehab 70,250,038 Soft Costs 18,447,709 Developer Fees 9,545,000 Reserves 2,831,570 Total Project Costs 110,074,317 Supportive Services Costs - Residential Costs 110,074,317 Costs versus Sources Total Project Costs 110,074,317 Total Financing Sources 110,074,317 Difference 0 Protect Cost Limitations Limits General Requirements 6.00% 4.58% Contractor Overhead 2.00% 1.53% Contractor Profit 6.00% 4.58% Developer Fees 15.00% 10.76% Soft Cost 40.00% 39.85% Per Unit Comparison Limits Cost per unit total n/a 371,873 Cost per unit residential only $350,000 371,873 Cost per unit Const/Rehab n/a 237,331 Credits per unit n/a 165,472 Operating Cost per unit $3,000 min 4,461 Replacement Reserves $300 min 350 Per Square Foot Comparison Construction/Rehab per sq ft 245.56 Total Project Cost per sq ft 384.77 Credits per sq ft 171.21 Credits per sq ft(residential only) 208.96 Utilities Paid by(Tenant/Owner) $ - Market Study Data: Vacancy Rates Absorption Rate Months to Absorb - Average Project Rent 1,744 Average Market Rent - Units needed for Targeted AMI's - County Gallatin Project Name Rocky Mountain Flats Developer/General Ptnr BlueLine Development,Inc Market Rents 0-bdrms - 1-bdrms - 2-bdrms - 3-bdrms - 4-bdrms - other - Acq Rehab Info: Reserves kept by existing owner - Other cash out by existing owner - Current Debt on Property - Development Evaluation Criteria and Selection Lower Income Tenants Income and Rent Level Targeting. Project-Based Rental Subsidy. NO Project Characteristics Amenities na Small Town/Tribal Designation Area na Affordable Housing Stock na Historic Preservation na Local Involvement Community Input na QCT/Local Community Revitalization Plan na Communication/Relationships na Green Building and Energy Conservation Standards Meets Requirements Tenant Populations with Special Housing Needs Family Projects Family Project Elderly Projects na BLUELINE June 27, 2025 RE: Rocky Mountain Flats-Waiver requests Montana Board of Housing, As we continue the development and pre-construction process for Rocky Mountain Flats (RMF), which will bring 296 news housing units to Bozeman, and working toward closing and construction start later this year, we're requesting a cost per unit waiver for this project. RMF is currently anticipated to cost$371,872.70 total per unit which is outside of the QAP limit, thus the request for a cost/unit waiver. Mainly these costs are driven by location- land cost, permitting and impact fees, the City's requirements for infrastructure improvements to our site, as well as labor and general construction in the Bozeman area. Thankyou for your consideration. Sincerely, Nathan Richmond President &Chief Executive Officer, BlueLine Development, Inc. Member of the Sole Member of the Managing General Partner, Rocky Mountain Flats, LLLP 1004 South Ave W. Missoula, Montana bluelinedevelopment.com