Article Summary –
The Great Falls Development Authority’s housing study predicts a need for 630 new housing units annually over the next decade due to population growth, increased household income, and in-migration from programs like Sentinel missile, but current building efforts are inadequate to meet this demand. The city’s planning director, Brock Cherry, is proposing regulatory changes to ease development on expansive soils and promote infill development, which could mitigate high costs and encourage smaller scale builders. Additionally, Cascade County commissioners have approved NeighborWorks Great Falls to manage a new reinvestment fund, sourced from a $50 million state bill, to provide low-interest loans for workforce housing, aimed at families earning up to 140% of the area’s median income.
GREAT FALLS — A housing study commissioned by the Great Falls Development Authority estimates a demand for 630 new housing units annually in the city over the next decade. Despite ongoing construction, the study predicts this won’t meet the demand.
The need has grown since the 2021 study. Modest increases in population and household income, along with anticipated in-migration from the Sentinel missile program, have driven this demand.
“And so now, having some growth, experiencing what the West and Montana and central Montana are experiencing together, we now have significantly more demand pent up than ever before,” said Jake Brown, vice president of the GFDA, in a recent webinar on housing.
Public officials have discussed two strategies for addressing the housing crunch.
Great Falls Planning and Community Development Director Brock Cherry and staff are developing a high-level plan, with ongoing work to update the city’s growth policy. Cherry is also considering underground factors.
Up to 90% of buildable land in Great Falls sits on “expansive soils,” which can affect building foundations.
Following lawsuits in the 2000s over soil problems, Great Falls requires geotechnical engineer reports for home building permits. These reports suggest ways to mitigate soil issues, but with no formal policy enforcing the recommendations, few contractors complete the suggested work.
This adds to the startup costs of homebuilding.
“During the interim, we have to do something,” Cherry said, “which means we have to reimagine our development requirements to meet smaller contractors’ needs.”
Cherry recently pitched a tweak to the geotechnical requirement to promote smaller developments. He suggested starting with a less expensive soil test for new developments to reduce costs for the small number of lots without expansive soil issues.
The new policy would exempt infill lots—existing unused or underused lots within the city. This could involve building on an empty lot or redeveloping an old home.
Great Falls has the oldest housing stock among larger Montana cities. According to the GFDA study, 66% of owner-occupied homes in Great Falls were built before 1980, compared to 52% in Billings and 32% in Bozeman.
While Cherry’s change would apply to all developments, small infill building could get an immediate boost.
“It’s exciting to think that this policy could remove a significant barrier to small lot development,” he said.
The GFDA housing report noted the impact of soils on development opportunities and home-buying affordability.
Recently, Cascade County commissioners approved NeighborWorks Great Falls to establish a new reinvestment fund to aid working-class homebuyers.
The fund came from a 2023 bill, HB819, which set aside $50 million for low-interest loans for home purchases. Counties must designate a “community reinvestment organization” to manage the program locally. Commissioners approved NeighborWorks as that organization on Aug. 13. The money comes as a grant, but must be administered as a revolving loan fund that replenishes when borrowers repay.
The loans are available to those earning up to 140% of the area’s median income and are aimed at “workforce housing,” or lower-middle-class families paying more than 30% of their income on housing.
“That workforce housing group, that missing middle, sometimes doesn’t have opportunities for federal funding like a home loan from the city,” said Sherrie Arey, executive director of NeighborWorks. “This could be a game-changer.”
NeighborWorks needs to secure a 1:1 match to state funds to implement the program. Arey said they are developing a plan to present to investment institutions.
Once matching investments are secured, the program can offer loans of up to 30% of the total home cost for county-wide buyers. NeighborWorks is seeking state approval to continue the program.
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