Multifamily Housing Development
The Montana Board of Housing offers a variety of financing options for the development of affordable multifamily rental units. The MBOH staff monitors all properties, during the compliance committment period, to ensure that they comply with federal and state requirements and that they fulfill the obligations they committed to for the financial assistance they receive.
The low income housing tax credit is available under Section 42 of the Internal Revenue Code (IRC) of 1986. The credit is a federal income tax credit for owners of qualifying rental housing which meets certain low income occupancy and rent limitation requirements. The credit is taken as a reduction in participant’s tax liability over a 10 year period. The credit can also be sold to investors to act as a financing source.
Except for certain buildings substantially financed with tax-exempt bonds, an owner must first obtain a credit allocation from the appropriate state agency before claiming the tax credit. The amount of tax credit which may be allocated annually for housing within each state is limited to the greater of $2.30 per state resident or the minimum dollar amount dictated by IRC (as of year 2014 such minimum dollar amount is just over $2.60 million). The Montana Board of Housing (MBOH) is the state agency which allocates the tax credit for housing located in Montana. The Board will provide fixed rate mortgages for low income rental housing which meet underwriting eligibility and receive approval of HUD mortgage insurance.
The Montana Board of Housing offers Multifamily Loans, including Risk Share and General Obligation, to produce rental housing that is affordable for low-income Montanans.
In addition, MBOH is an Approved Lender for USDA Rural Development's Multi-Family Housing Direct Loans.
To learn more about the Terms & Conditions of the Multifamily Loan Program, please contact Mary Bair at email@example.com or Kelly Guariglia at firstname.lastname@example.org