HB 505: Allow Montana housing infrastructure revolving loan fund to retain its interest and income and provide for fund transfers - Montana

HB0505_3(13).pdf → HB0505_X(7).pdf · 5 edits

MODERATE

The bill was finalized and enrolled, moving from a draft version to an official legislative text. The core policy changes include increasing the minimum housing density requirement from 10 to 3 units per acre, removing specific eligibility priorities for counties near state facilities, and establishing a $50 million transfer from the general fund by June 2025. The effective date was changed to upon passage, while a retroactive applicability clause remains for interest earned since June 2023.

Scope change

The bill's scope was narrowed by removing specific eligibility priorities for certain counties, and the funding scope was expanded by increasing the minimum density threshold for eligible projects.

ELIGIBILITY

The minimum gross density requirement for residential development projects increased from 10 units per acre to 3 units per acre, allowing more projects to qualify for funding.

A specific priority rule requiring at least $7 million in lending to counties with populations under 15,000 near state inmate or behavioral health facilities was eliminated.

FISCAL

A new provision mandates a $50 million transfer from the state general fund to the housing loan fund by June 30, 2025.

TIMELINE

The effective date was changed to 'upon passage and approval,' replacing the previous placeholder text.

TECHNICAL

Standard enrolled bill certification language and signatures for the House and Senate were added to finalize the document.

HB0505_X(6).pdf → HB0505_3(13).pdf · 4 edits

MODERATE

This bill updates the Montana Housing Infrastructure Revolving Loan Fund to allow the fund to purchase up to 50% of bonds issued for eligible projects, expanding its financing capabilities. It also clarifies that the fund can be used to secure bonds in lieu of a pledge of the issuer's revolving fund. Additionally, the bill increases the required General Fund transfers to the account from $50 million in 2025 to a total of $100 million by adding a second transfer of $50 million due by June 30, 2026.

Scope change

The scope of financing was expanded to explicitly include the purchase of bonds and the use of the fund to secure bonds, while the funding timeline was extended to include a second transfer in 2026.

FISCAL

Added a new provision allowing the Board of Investments to purchase up to 50% of bonds or other securities issued by eligible government units to cover project costs.

Added a new provision allowing the Board of Investments to use the fund to secure any portion of bonds in lieu of a pledge of the issuer's revolving fund.

Modified the funding schedule by adding a second transfer of $50 million from the General Fund to be completed by June 30, 2026, increasing the total potential funding to $100 million.

TECHNICAL

Updated the bill title and section numbering to reflect the new version (HB0505.3) and corrected minor phrasing in the summary of provisions.

HB0505_X(3).pdf → HB0505_X(4).pdf · 4 edits

MODERATE

The bill was amended to clarify that funds can be transferred rather than just 'transfers' being allowed, and to specify that density requirements apply to 'each acre' rather than the previous vague phrasing. A critical substantive change adds a requirement for the Board of Investments to set policy ensuring long-term affordability for housing built with these funds, which runs with the property. The bill also clarifies that the amended sections apply to the Montana Code Annotated (MCA) and establishes an immediate effective date with retroactive applicability.

Scope change

The bill now explicitly applies to the Montana Code Annotated (MCA) and expands its scope by mandating affordability provisions for new housing developments funded by the account.

TECHNICAL

Clarified the text to specify a 'transfer of funds' instead of just 'transfers' and added 'MCA' to the list of amended sections.

ELIGIBILITY

Refined the density requirement for residential projects to explicitly state it applies to 'each acre'.

REQUIREMENT

Added a new requirement for the Board of Investments to establish policy ensuring long-term affordability for housing built with these funds.

TIMELINE

Added language providing for an immediate effective date and retroactive applicability.

HB0505_3(12).pdf → HB0505_X.pdf · 4 edits

MODERATE

This bill updates the Montana Housing Infrastructure Revolving Loan Fund to allow it to secure bonds and provide financing for eligible projects. It removes previous eligibility priorities that favored smaller counties near state facilities and lowers the minimum density requirement for residential projects from 10 units to 3 units per acre. The bill also clarifies that all interest and income earned by the fund must be retained within the account.

Scope change

The bill expands the fund's ability to secure bonds and broadens eligibility by removing geographic and density restrictions that previously limited which projects could receive funding.

ELIGIBILITY

Removed the priority rule that directed at least $7 million of funds to counties with populations under 15,000 near state facilities housing inmates or behavioral health patients.

Reduced the minimum gross density requirement for eligible residential projects from 10 units per acre to 3 units per acre.

FISCAL

Clarified that all interest and income earned on the fund must be retained in the account rather than being subject to other appropriations.

TECHNICAL

Corrected formatting inconsistencies in the bill title and section headers to align with standard legislative style.

HB0505_1(9).pdf → HB0505_3(8).pdf · 3 edits

MINOR

The bill text was updated to reflect a new version number (HB0505.3) and includes a minor formatting correction to a transfer description. The most significant policy change is the increase in the minimum gross density requirement for residential development projects from four units per acre to five units per acre, which allows for higher-density housing construction. Additionally, the eligibility priority for certain projects was removed, and the bill's title was slightly adjusted to clarify the transfer provision.

Scope change

The bill's applicability was expanded by lowering the density threshold, allowing more residential projects to qualify for funding, while the removal of eligibility priority may alter the order in which projects receive consideration.

ELIGIBILITY

The minimum gross density requirement for eligible residential development projects was increased from four units per acre to five units per acre, changing the criteria for which projects qualify for funding.

The phrase 'ELIGIBILITY PRIORITY' was removed from the bill title and summary, indicating that the special priority status for certain projects has been eliminated.

TECHNICAL

The bill version number was updated from HB 505.1 to HB0505.3, and a minor grammatical adjustment was made to the description of fund transfers.

HB0505_2(6).pdf → HB0505_1(9).pdf · 3 edits

MINOR

The bill text was renumbered from HB 505.2 to HB 505.1, indicating a revision in the legislative process. The title was updated to clarify that the bill eliminates 'eligibility priority' for certain funds, a specific detail previously missing. Additionally, the effective date section was expanded to explicitly include 'retroactive applicability,' ensuring the law applies to events occurring before its official enactment.

Scope change

The bill's scope was clarified by explicitly removing 'eligibility priority' in the title, and its temporal scope was expanded to include retroactive application.

TITLE

The title was modified to explicitly state that the bill eliminates 'eligibility priority,' clarifying how funds will be distributed.

TIMELINE

The text now explicitly includes 'retroactive applicability' alongside the effective date, changing when the law applies to past events.

TECHNICAL

The bill number was changed from HB 505.2 to HB 505.1, reflecting a revision in the legislative drafting process.

HB0505_3(7).pdf → HB0505_2(6).pdf · 5 edits

MODERATE

The bill number was updated from HB 505.3 to HB 505.2, likely reflecting a revision in the legislative process. Substantive policy changes include removing a specific population threshold (15,000 inhabitants) for counties eligible to receive infrastructure funding, clarifying that impact fee waivers apply only to the smaller of the loan amount or the impact fees due, and deleting a requirement for applicants to pay impact fees if they are the entity seeking a loan.

Scope change

The bill's scope was expanded by removing the population limit for counties eligible for funding, allowing counties with populations over 15,000 to qualify.

ELIGIBILITY

Deleted the requirement that eligible counties must have a population of 15,000 inhabitants or less, broadening the range of counties that can receive funding.

REQUIREMENT

Removed the specific text 'THREE' from the minimum gross density requirement for residential development, changing it to a general 'four units' standard.

Clarified that impact fee waivers are limited to the smaller amount between the loan/bond value and the actual impact fees due, ensuring the waiver does not exceed the fee obligation.

Deleted the specific requirement that applicants seeking loans must pay all impact fees, removing a potential barrier for certain developers.

TECHNICAL

Updated the bill version number from HB0505.3 to HB0505.2 throughout the document.

HB0505_2(5).pdf → HB0505_3.pdf · 2 edits

MINOR

The bill version number was updated from HB 505.2 to HB 505.3. The most significant policy change involves the minimum density requirement for residential development projects, which was increased from four units per acre to four THREE units per acre. This adjustment raises the threshold for what qualifies as a dense enough project to receive infrastructure funding, potentially limiting the number of eligible developments.

Scope change

The scope of eligible projects has been narrowed by increasing the minimum density requirement.

ELIGIBILITY

The minimum gross density requirement for residential development projects was changed from four units per acre to four THREE units per acre, making it more difficult for projects to qualify for funding.

TECHNICAL

The bill number was updated from HB 505.2 to HB 505.3, and several lines were reformatted with adjusted spacing.

HB0505_1(8).pdf → HB0505_2.pdf · 3 edits

MINOR

The bill text was updated to reflect a version number change from HB 505.1 to HB 505.2. The most significant substantive change is the removal of the word 'priority' from the description of eligibility criteria, which alters the legislative intent regarding how funds are allocated. Additionally, a minor grammatical adjustment was made to change 'transfers of funds' to 'transfer of funds'.

Scope change

The bill's scope regarding eligibility was modified by removing the term 'priority', which may change how the legislature interprets the order or preference for distributing funds to eligible projects.

ELIGIBILITY

The word 'priority' was removed from the section describing eligibility, potentially changing the criteria for how funds are distributed among projects.

TECHNICAL

The phrase 'transfers of funds' was changed to 'transfer of funds' to correct grammar or align with specific legal terminology.

The bill number and version identifiers were updated from HB 505.1 to HB 505.2, indicating this is a revised version of the legislation.

LC1905.pdf → HB0505_1.pdf · 5 edits

MODERATE

The bill was renumbered from LC 1905 to HB 505 and significantly expanded its scope from a simple revolving loan fund to a comprehensive financing tool that can now secure bonds and purchase bond securities. The eligibility criteria for projects were relaxed, lowering the required housing density from 10 units per acre to 4 units per acre and removing the previous priority for small counties near state facilities. Additionally, new requirements were added to waive impact fees for developers and mandate long-term affordability provisions for the housing built with these funds.

Scope change

The bill's scope expanded from a passive revolving loan fund to an active financing mechanism that allows the state to secure bonds and purchase securities to fund infrastructure projects.

SCOPE

The fund's purpose was broadened to allow the use of the account to secure bonds and purchase up to 50% of bonds or securities issued by eligible government units.

ELIGIBILITY

The minimum gross density requirement for eligible residential development projects was reduced from 10 units per acre to 4 units per acre.

The previous eligibility priority for counties with populations under 15,000 located near state-owned facilities was eliminated.

REQUIREMENT

New requirements mandate that developers waive impact fees up to the loan amount and that housing funded by the bill must include provisions to preserve long-term affordability.

The board of investments is now authorized to use interest income to finance residential ownership of mobile home parks or other multifamily housing.

Allow Montana housing infrastructure revolving loan fund to retain its interest and income and provide for fund transfers

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