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Home My WebLink AboutRHC_Bozeman Work Session 8-4-26_FINALCITY OF BOZEMAN HOUSING WORK SESSION • AUGUST 4, 2026 The Regional Housing Coalition: Bozeman Overview Market snapshot, housing production, homelessness, and funding solutions Mark Bond | Community Engagement Manager, One Valley Community Foundation August 4, 2026 ONEVALLEY.ORG/REGIONALHOUSING PART ONE The RHC & the Regional Picture The RHC, what the market looks like, what's working —and one big win. ONEVALLEY.ORG/REGIONALHOUSING PART ONE • MARKET SNAPSHOT The Affordability Reality $2,126/mo Median rent, Gallatin County (April 2026) Up significantly from pre-pandemic levels $773,000 Median home price, Gallatin County (April 2026) Outside reach of most local households $93,528 Median household income Gallatin County Incomes haven't kept pace with prices The Core Problem: The Capital Gap It costs more to build a home today than a middle-income household can afford to pay. Housing practitioners call this the "capital gap." Without subsidy to close that gap, below-market housing cannot be built. This is not a local failure —it is the defining structural challenge of housing production in 2026. $350,000 Estimated capital gap for a 2BR townhome at 120% AMI (Bridger View, real figures) ONEVALLEY.ORG/REGIONALHOUSING PART ONE • MARKET SNAPSHOT Is the Market Responding? Yes, but Gaps Remain. New multifamily construction is up and vacancy rates are rising —but not at price points everyone can access. The pipeline is real. The gaps are also real. 43% of Gallatin County renter households are rent-burdened 8,278 of 19,251 total renter households 4,100 households are severely rent-burdened Spending 50%+ of income on housing $375 per month short of affordable rent Median renter can afford $1,712; fair market rent for a 2BR is $2,087 The two groups falling furthest through the cracks: HOUSEHOLDS BELOW 40% AMI Emergency shelter & transitional housing —overwhelmed Long waitlists for subsidized housing. Emergency shelter demand that has grown every year. These households aren't being reached by LIHTC or market-rate production — they need a deeper level of subsidy, and that supply isn't there. RENTERS TRYING TO BUY Rising incomes —still priced out of ownership Median renter household income jumped from ~$51K in 2022 to over $68K in 2026. But entry-level homes still require $3,000+/month in mortgage payments —a six-figure income to comfortably afford. These households stay renters longer, putting downward pressure on the market for everyone below them. ONEVALLEY.ORG/REGIONALHOUSING PART ONE • AFFORDABLE HOUSING PRODUCTION Progress Is Real —and Accelerating 797 affordable units built in the last two years alone 2,520 units in the pipeline (up 19.7% from 2024) 1,140 total units completed since 2020 In the last two years, the region built more than twice as many affordable units as in the previous four years combined. The pipeline is the largest it has ever been —but for every subsidized rental unit in the county, there are nine cost-burdened households that could use it. What's driving it: Federal LIHTC 400+ units since 2020, 2,000+ in pipeline —the workhorse of affordable rental production Local land contributions Hidden Creek (Gallatin County), Fowler (City of Bozeman) —public land at no cost to catalyze projects Gallatin Housing Impact Fund $8M raised via NeighborWorks Montana —below-market lending for gap financing ONEVALLEY.ORG/REGIONALHOUSING PART ONE • HOMELESSNESS A Turning Point: Homelessness Is Down For the first time in years, the annual count fell —and the data points to why. ONEVALLEY.ORG/REGIONALHOUSING PART ONE • HOMELESSNESS 523 2025 PIT count −25%394 2026 PIT count "This progress is not a coincidence. It reflects years of partners building a more complete response to homelessness." —Heather Grenier, President & CEO, HRDC The picture can't be displayed. ONEVALLEY.ORG/REGIONALHOUSING PART ONE • HOMELESSNESS What Drove It? Rowing in the Same Direction. The decline happened because nearly 30 organizations spent years building the infrastructure to act together —and then acted together. MORE HOUSING ONLINE 797 affordable units built in two years These new units created real places for people to land when they left shelter. The pipeline —now 2,520 units —keeps that momentum going. → People aren't staying in shelter as long because there's somewhere affordable to go next. EXPANDED SHELTER CAPACITY Three facilities now serve the valley Homeward Point (130 beds, 2025), Haven (40-bed campus, 2023), and Family Promise (100 families/yr, 2023) gave the region significantly more capacity to respond to crisis. → The system absorbed a 17.4% increase in bed nights without turning people away. COORDINATION & REFERRALS Increased Alignment on Programming and Funding HRDC, Haven, and Family Promise submitted a single joint request for City funding in 2025, and in 2026, Bozeman, Belgrade, and Gallatin County have all passed budgets using a funding formula created by the RHC. → Significant steps toward addressing the region’s $750k funding shortfall. CDBG & TRANSITIONAL HOUSING FUNDS $325K in CDBG funds deployed The City of Bozeman directed $325K in Community Development Block Grant funds to shelter operations —the first time CDBG dollars have been used this way locally. These funds helped get folks back into housing. → Dedicated public dollars, targeted at the right intervention, at the right moment. The picture can't be displayed. ONEVALLEY.ORG/REGIONALHOUSING PART TWO Bridging the Gap: Funding Solutions A guide to the tools —local and state —that could close capital gaps at scale. ONEVALLEY.ORG/REGIONALHOUSING PART TWO • BRIDGING THE GAP How We Got Here: The Story Behind the Report Bridging the Gap: A Guide to Funding Affordable Housing in Montana grew out of a question the RHC couldn't answer yet: what would it actually take to close the capital gap at scale? How it was built 2023–2024 The RHC identified the capital gap as the central barrier. Members began asking: what tools exist —locally and at the state level —that could create a reliable funding stream? 2025 The RHC Funding Workgroup formed, bringing together housing practitioners, government planners, a tenant organizer, a land conservationist, and the Mayor of Bozeman to research the landscape. Early 2026 The draft was reviewed and approved by the full RHC membership —nearly 30 organizations —making it a coalition-owned document, not a single organization's position. July 15, 2026 First public presentation at the Q3 RHC Legislative Briefing in Big Sky —the first time state legislators heard this analysis. Authors Nathan Stein | Executive Director, Headwaters Community Housing Trust Lila Fleishman | Community Development Director, HRDC Ashlie Gilbert | Senior Planner, Gallatin County Olive Nahkano Sohn | Organizer, Bozeman Tenants United David Weinstein | Northern Rockies Program Manager, Trust for Public Land Joey Morrison | Mayor, City of Bozeman What it covers Scalable tools already in use Affordability incentives, land contributions, LIHTC, revolving loan funds Local tools —no state action needed Levy or bond, voluntary fee programs Tools requiring state legislative change Local option sales tax, bed tax, rental car tax, marijuana tax ONEVALLEY.ORG/REGIONALHOUSING PART TWO • BRIDGING THE GAP The Funding Landscape: Two Categories of Tools LOCAL TOOLS Available without changes to state law Levy or Bond $–$$$ Voter-approved; flexible use; precedent in Seattle ($40M+ raised locally) Voluntary Fee Program $ Business-led; Whitefish model; $850K–$1.8M/yr potential for Gallatin County TOOLS REQUIRING STATE ACTION Require legislative change Local Option Sales Tax $$$ ~$85M/yr for Gallatin County; proposed in 2025 session Bed Tax Reallocation $$ Nearly $20M collected in Gallatin Co. FY2024; 80%+ goes to state tourism promotion Rental Car Tax $ $7–8.5M/yr statewide; small allocation could fund planning and gap finance Marijuana Tax $ ~$60M/yr statewide; SB537 passed both chambers in 2025 —vetoed by governor ONEVALLEY.ORG/REGIONALHOUSING PART TWO • LOCAL TOOLS Levy or Bond: The Community Housing Fund How It Works In Montana, cities and counties may propose levies or general obligation bonds by ballot measure to increase funding for a specific program beyond the current allowed mills. Voters approve the rate and purpose. Revenue is flexible —it can grow revolving loan programs, fund direct grants, or support city housing programming. Levy vs. Bond A levy generates revenue through taxation with no repayment obligation. A bond raises funds through borrowing, with a legal obligation to repay with interest. Bozeman's 2021 levy failed by 277 votes. Evidence suggests clearer designation of fund use could produce a different outcome. Revenue Potential —Gallatin County Mill Levy Annual Revenue Cost / Avg. House 7 $5.0M/yr $47/yr 8 $5.7M/yr $54/yr 9 $6.5M/yr $61/yr 10 $7.2M/yr $68/yr 12 $8.6M/yr $81/yr Seattle precedent: housing levy has generated $40M+ in Bozeman-scale dollars, producing 11,000+ rental homes since 1986. ONEVALLEY.ORG/REGIONALHOUSING PART TWO • LOCAL TOOLS Voluntary Fee Programs: Private Capital for Housing A voluntary fee program is a non-government, community-based model: participating businesses ask customers to add a small optional fee to their transaction, which is directed to a community fund. It requires no legislative action, grows over time, and works especially well in tourism-heavy economies. $850K –$1.8M Estimated annual revenue for Gallatin County, based on nonresident traveler expenditure data ESTABLISHED MODEL Whitefish's 1% Community Sustainability Fund Restaurants, hotels, and tourism businesses voluntarily add a 1% fee to transactions. Revenue goes to community priorities including Housing Whitefish —workforce housing and rental assistance. Has generated hundreds of thousands of dollars annually. NEW IN 2026 Park County's "Give Local" Program Launched after Park County Housing Coalition built community buy-in. Participating businesses direct contributions to the Park County Community Foundation's housing fund. Distributed via the "We Will" grant program to local nonprofits. ONEVALLEY.ORG/REGIONALHOUSING CONCLUSION Housing affordability will remain the defining challenge shaping economic vitality in Gallatin County. Meeting it will require blending tools —local and state, public and private —at greater scale than today. The RHC's role is to build the table where that happens, and to be the most trustworthy source of information in the room when it does. Mark Bond | Community Engagement Manager, One Valley Community Foundation mark@onevalley.org • 406.587.6262 ext. 30 ONEVALLEY.ORG/REGIONALHOUSING