Affordable Housing Trust Fund

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The Affordable Housing Trust Fund (AHTF) was created in 2020 via authorizing ordinance 3663. The AHTF plays a role in nearly all the program development activities of the City's housing strategy, A Place to Call Home.

The Trust Fund provides direct funding to developers, nonprofits, and organizations to develop projects that create and preserve housing that Missoulians can afford. Funding levels available in the Trust Fund vary each year depending on the annual budget process. The following types of projects and programs are eligible for support from the Trust Fund:

Consumer housing services
Construction of affordable rental and homeowner housing
Preservation and rehabilitation of existing affordable housing

The Affordable Housing Resident Oversight Committee (AHROC), established in 2021, oversees key functions of the Trust Fund, including producing the annual Trust Fund Allocation Plan and AHTF Policies and Administrative Procedures.

Each year, City staff produce a report tracking housing indicators, population statistics, and market information to guide annual priorities for funding. AHROC uses the Annual Housing Assessment Report to set annual priorities for Trust Fund distributions. The report also includes information about outcomes achieved in the prior year through Trust Fund investments.

Based on the information, feedback, and data collected through the housing assessment report and community needs assessment, AHROC produces the Annual Allocation Plan, setting goals for the upcoming fiscal year for Trust Fund investments.

Funds are disbursed on a City of Missoula Fiscal Year basis (July 1st - June 30th). This allows applicants to leverage funding sources, coordinate programming, and help the City maximize efficiency in the administration of funds. Funds not awarded in the annual cycle may be available throughout the year, by invitation from City staff, for projects that cannot wait for the next competitive round of funding.

Compliance requirements for current Affordable Housing Trust Fund (AHTF) grantees can be found in the AHTF Policies and Procedures Manual.

AHTF Eligible Activities*

Consumer Housing Services:

Financial/Rental Education and Counseling
Housing Education and Counseling
Innovative Education and Counseling
Community Land Trust Administrative Support
Income Certification for City Programs
Housing Solutions Fund
Housing-focused Case Management
Tenant Support Programs

Construction of Housing:

Homeownership Development below 120% AMI
Rental Development below 80% AMI
Building Incentives

Preservation:

Small Repair Loans
Multi-family acquisition
Mobile/Manufactured Home Preservation & Infrastructure Assistance
Community Land Trusts

*The examples above are not all-inclusive; other activities may be eligible for Trust Fund support.

Applying for Funding

Once the annual goals for Trust Fund investments are established through the Annual Allocation Plan, City staff open a competitive application process for the Trust Fund.

The timing of the competitive funding cycle aligns with other funding cycles administered by the Community, Planning, Development and Innovation (CPDI) department. An application workshop is hosted each year to open the application period and outline the funding priorities set in the Allocation Plan, the application process, and deadlines. Applicants must submit an electronic application; then submissions are reviewed by a committee that includes City Council members. Viable projects that align with Annual Allocation Plan priorities are then recommended for funding and invited to submit follow-up materials. Further instructions can be found in the application guidelines.

Grants and loans are made from the Trust Fund. Award terms are determined per project and specified in project contracts. Loan terms are flexible, both short and long-term, and interest rates are set based on project needs.

Donations

The Affordable Housing Trust Fund can accept donations from community members and other external parties. Donations to the Affordable Housing Trust Fund can be made directly to the City of Missoula. In most cases donations to the City can be included for tax deductions, but consulting with a tax or financial advisor is recommended.