Montana
Montana workforce housing tax credit gets bipartisan support in House • Daily Montanan
A workforce housing tax credit bill moved ahead Thursday in the Montana House with significant bipartisan support.
Modeled after the federal Low-Income Housing Tax Credit, the state credit in House Bill 21 aims to be one fix to the state’s persistent lack of housing and the high cost of existing homes.
It would offer credits managed by the state for affordable housing developments.
Rep. George Nikolakakos, R-Great Falls, said because Montana didn’t have the program in place before, it has left 1,300 units on the table since 2019. He said the return on investment with the program is good.
“It’s a program that gets shovels in the ground,” Nikolakakos said.
The program would offer $1.5 million worth of credits each year for six years on a cumulative basis, and then sunset, according to a fiscal analysis by legislative staff.
Sponsor Rep. Larry Brewster, R-Billings, said the bill is “a little expensive,” but it is needed given the state of housing affairs in Montana. He said the money doesn’t go out until the project is done, and the affordable rent is guaranteed for at least 30 years.
In a committee hearing, he said the credit has a beginning and an end date, and “lots of opportunity for oversight.” It fills the gap that developers can’t afford to pay with the federal credit, possibly grants, and a bank loan.
“These days the mortgage can’t quite reach around what the federal tax credit provides, so this would be a bridge to fill that in,” Brewster said.
Rep. Mark Thane, D-Missoula, said housing tax credits already are successful, and HB 21 helps address the severe problems in Montana. He said projects don’t pencil out at the rates needed for people living on the margins.
The Montana Housing Coalition said a home is deemed “affordable” if a household pays no more than 30% of its income for a home including utilities. It said 32 other states have such a program.
“This is an opportunity to create additional housing units, an opportunity to make a dent in our housing crisis,” Thane said.
All Democrats supported the bill, along with 33 Republicans.
Twenty-five Republicans opposed it, some objecting to the price tag. At its peak year, it will cost the general fund $9 million, according to an estimate in the fiscal analysis.
Rep. Jed Hinkle, R-Belgrade, said he appreciates the intent, but he doesn’t believe the government should interfere with the free market because “it messes things up.”
“Then, we have people say, ‘The free market doesn’t work.’ Well, this is why. It’s because of constant government intervention,” Hinkle said.
In a House Tax committee hearing last week, developers, affordable housing advocates, and members of the business community spoke in favor of the bill.
Proponents said the credit multiplies in the state economy. They described the bill as one that will help fill the financing gap that has emerged as costs to build have increased in the form of higher interest rates and prices of materials.
The only opponent at the hearing was the Montana Society of CPAs, which opposes credits in general because they complicate the tax code. On behalf of the accountants, John Iverson suggested the money be handed out directly instead of through a credit.
Sam Sill, with the Montana Bankers Association, said people considered “the working poor” will be helped with the credit.
“The cost of building is significant enough now, high enough now, that without some degree of support, you probably can’t build housing that those folks are going to able to afford,” said Sill, who said he used to represent real estate developers.
Beki Brandborg, chair of the Montana Housing Coalition and a private affordable housing developer, said she and a partner were able to take an old apartment building of subsidized units in Culbertson “back to the future” with a similar credit.
She said the people who live in the units are hairdressers, cooks, dishwashers, grocery store clerks, mechanics and school janitors.
A couple of mayors spoke in favor of the credit, too. Missoula Mayor Andrea Davis, who worked in housing development, said affordable housing is one of the reasons voters elected her.
Regulation alone won’t solve the problem, she said. Capital is necessary, and she views housing in the same way she sees sewer, water, roads, and sidewalks in a community.
“Homes that Missoulians can afford, and that Montanans can afford, that our workforce can afford, is our housing infrastructure. It is an investment in our residents,” Davis said.
Michael O’Neil, head of the Helena Housing Authority, pointed to a 2022 study from the University of Montana Bureau of Business and Economic Research as evidence of future success.
“For every dollar in lost revenue to the tax credit, a state credit program is estimated to leverage $2.69 in direct public and private residential spending in the broader state economy,” O’Neil said. “This is a very conservative estimate.”
Montana’s Board of Housing manages those credits, and in recent years, it has awarded nearly all of its federal allocation, roughly $29 million each year, and has received applications for “at least double that,” the study said.
Citing the study, O’Neil said 40% more units of low-income housing tax credits could be built every year in Montana if the state started a program, or 122 more a year.
Had such a credit been in place in 2019, Aubrey Godbey with the Montana Budget and Policy Center estimated even more units could have been built, 1,350 at the end of 2024.
Godbey said Montana has 42 units of affordable homes available for every 100 households who need them, citing data on rentals from the National Low Income Housing Coalition.
Developer Don Sterhan and member of the Montana Housing Coalition said many members want to see the credit pass. The bill needs one more vote to pass the House.
“It’s not the total solution, but it helps, and it very well might be the component that makes the difference whether a project is built or not,” Sterhan said.
Also in support were the Montana Chamber of Commerce, the Montana League of Women Voters, the NeighborWorks Montana, Homeward, Montana Contractors Association, Montana Association of Realtors and Shelter Whitefish, and Montana League of Cities and Towns.
Montana
State House passes decorum rules to govern debate
Republican lawmakers Tuesday approved rules that define violations of decorum — or etiquette — legislators are expected to follow.
The new regulations come after a dispute over decorum and subsequent protest in the 2023 legislative session. That resulted in Democratic Rep. Zooey Zephyr being expelled from the floor.
The new amended rules say a representative may not personally attack another member, impugn motives of another member, use profane language, or threaten physical harm. The rules also create a three-strike system.
A first offense prompts a formal warning. A second offense leads to a member losing speaking privileges during floor debates for three days. And a third offense results in losing speaking privileges or expulsion from the floor for six days.
The rules do not preclude the Speaker of the House or House majority from handing down additional punishment at their discretion.
Republicans say the regulations are narrow and offer clarity to members. Democrats say the rules will stifle free speech and hinge on subjective interpretation.
The rules passed along party lines.
Montana
Why So Few Americans Live In Eastern Montana
Montana
Sex-segregated bathroom bill clears key House vote
House lawmakers in the Montana Legislature on Wednesday preliminarily approved a bill that requires bathroom and sleeping-area use based on a person’s chromosomes and reproductive biology.
In a party-line vote, 58 legislators in the Republican-majority chamber affirmed House Bill 121 over 42 opponents. The bill requires one more vote to advance to the Senate.
Critics have cast the measure as an unenforceable restriction on transgender people and those whose appearance doesn’t clearly match stereotypical gender presentations.
Supporters, including sponsor Rep. Kerri Seekins-Crowe, R-Billings, have mostly sidestepped the mention of trans people when talking about the bill’s impact, arguing that it will generally help protect women from men who enter restrooms and dormitories with a predatory intent.
“This bill is not about discrimination. It’s about protecting those things that have been eroding these last few years for women,” Seekins-Crowe said. “All this bill is asking for is reasonable accommodations.”
HB 121 would require public facilities, such as schools and prisons, and some private facilities, including domestic violence shelters, to provide multi-user restrooms and dormitories for the “exclusive use” of males and females. The bill’s definitions of sex are based on a person’s XX or XY chromosomes and their production of eggs or sperm.
Another provision in the bill would also allow any individual who “encounters another individual of the opposite sex in the restroom or changing room” to sue the offending facility or organization within two years of the event. The bill would go into effect immediately upon being signed into law.
Opponents raised a slew of concerns about enforceability during the bill’s first committee hearing in early January, including how a facility with multi-user restrooms, changing rooms or dorms can confirm a person’s chromosomal or reproductive makeup. Critics also flagged the potential costs for local municipalities and how the right to legal action could encourage vigilante enforcement of sex-segregated public bathroom use.
The bill passed the House Judiciary Committee in a party-line vote on Monday, with Democrats raising similar concerns voiced by the legislation’s opponents.
Members of the minority party again sought to convince Republican lawmakers of the measure’s impact during the Wednesday floor debate.
“‘This is not an issue,’ is what was said again and again by the people impacted on the ground,” said Rep. Zooey Zephyr, D-Missoula, who sits on the House committee. Rather than making cisgender women feel more safe, Zephyr posed that the proposal would only interfere with the daily routines of trans people. “To me, trans people walk through the state of Montana afraid enough already. And we want to be able to live our lives in peace,” she said.
Some Republicans who occasionally vote with Democrats on other issues, including Rep. David Bedey, R-Hamilton, and Rep. Brad Barker, R-Roberts, said they shared concerns about the bill’s enforceability and cost for cities and towns. But both lawmakers voted to move the measure forward, suggesting that some of those issues could be resolved through amendments in the Montana Senate.
Other supporters described the bill as a necessary step to secure public places against bad actors who pose as trans to gain access to vulnerable places.
“Because of the destruction of societal customs, any predator or person with malicious intent can more easily invade private female spaces without calling attention to themselves,” said Rep. Fiona Nave, R-Columbus.
Opponents said such circumstances are based more on fear than reality, and that similar bills in other states have often opened the door to harassment toward people who appear to be transgender, regardless of their actions.
Democratic lawmakers on Wednesday also said the bill oversteps the Legislature’s role by policing people’s presence rather than their actions. Any criminal conduct in the affected spaces, including harassment and assault, is already illegal, said Rep. SJ Howell, R-Missoula.
“It is appropriate for us as a body to legislate harmful behavior. It is not appropriate to legislate people existing,” Howell said. “Montana values are simple. Love thy neighbor. Mind thy business. This bill does neither.”
At least 11 other states have passed similar bills in recent years, a legislative trend encouraged by national conservative groups. One of those groups is the Alliance Defending Freedom, which has testified in support of HB 121.
Lobbyists and lawmakers watching HB 121’s progress predict another robust committee hearing in the Senate. The bill’s first hearing stretched more than three hours, drawing testimony from almost 20 proponents and nearly 30 opponents before committee members launched into questions.
One of the lines of inquiry included the bill’s fiscal impact. A document produced by legislative staff and executive branch committees lists the known costs as zero dollars but acknowledges “potential costs associated with staffing increases, renovations of state facilities, and increased legal exposure.”
While the fiscal note says that specific costs to state agencies are “unknown” or “not currently estimable,” it forecasts that fiscal impact to local school districts could be “significant.”
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