House Bill No. [insert bill number] aims to authorize additional funding for low-income and moderate-income housing loans from the Permanent Coal Tax Trust Fund. The bill amends Sections 17-6-308 and 90-6-137 of the Montana Code Annotated (MCA) to increase the amount the Board of Housing can administer for housing loans from $65 million to $115 million. This funding is specifically designated for the development and preservation of homes and apartments to assist eligible low-income and moderate-income applicants. The bill also revises project requirements, including stipulations that loans must be in the first lien position and not exceed 95% of total development costs, while ensuring that the minimum interest rate charged is no less than 0.5% below the current coal trust fund investment performance.

Additionally, the bill removes the requirement that projects funded with these loans must be subject to property taxes, particularly for those located on tribal lands. It emphasizes that funds from the coal tax trust fund cannot replace existing funding sources for eligible activities and cannot be used to cover expenses of other programs administered by the board. The effective date for this act is set for July 1, 2025.

Statutes affected:
LC Text: 17-6-308, 90-6-137
HB0878_1(1): 17-6-308, 90-6-137
HB0878_1(2): 17-6-308, 90-6-137
HB0878_1(3): 17-6-308, 90-6-137
HB0878_1: 17-6-308, 90-6-137