Targeted Economic Development District Workforce Housing Program Guidelines

This project has received recommendation for approval by both the Missoula Jurisdictional Advisory Committee (MJAC) and Missoula Development Authority (MDA) and will go to county commissioners sometime in March.

Missoula County Community and Economic Development (CED) is considering policy guidance on how housing can support the goals of Targeted Economic Development Districts.

Background and Context:

The purpose of Missoula County’s Targeted Economic Development Districts (TEDDs) is to use tax increment financing (TIF) to build public infrastructure that encourages economic development within the boundaries of those districts (e.g., industry, manufacturing, tourism, recreation, etc.).

In 2021, the Montana Legislature amended the definition of infrastructure in the context of TIF to recognize that, in addition to roads, sewer, and water, workforce housing is also critical infrastructure necessary to support economic development within the boundaries of TEDDs across the state (Montana Code Annotated § 7-15-4279 and MCA § 7-15-4283(4)).

The Montana Legislature did not define “workforce housing” in this context, instead delegating that responsibility to local jurisdictions. This policy under consideration will provide that definition for Missoula County.

Missoula County is facing a housing affordability crisis. Over the past 15 years, home prices and rents have increased dramatically, while household incomes have failed to keep up.

Employers across Missoula County rely on workers at every income level to operate, but rising housing costs make it increasingly difficult to recruit and retain employees who can afford to live near their jobs.

Policy Framework:

The policy guideline under consideration seeks to define what types of housing within the County’s TEDDs qualify as “workforce housing,” and how those projects can be supported with TIF.

Under this policy, there will be two categories for qualifying workforce housing projects:

Process:

In developing this policy, Missoula County CED engaged with a stakeholder group of nonprofit and for-profit housing developers and providers to create this policy. The primary goal of this engagement effort was to ensure this policy is usable by both nonprofit and for-profit projects, and that this policy will result in an increased supply of workforce housing in Missoula County.

The stakeholder group reviewed and provided input on multiple drafts, leading to the final draft currently under consideration. 

The policy will be presented to the Missoula Jurisdictional Advisory Committee and the Missoula Development Authority for review and recommendations. The final policy will be presented to the county commissioners for public comment and a final decision at their public hearing meeting at 2 p.m. Thursday, March. 12.

Key Dates:

Missoula Jurisdictional Advisory Committee (MJAC): 6 p.m. Tuesday, Jan. 27, in the Lands & Communities Conference Room, 127 E. Main St., Second Floor, or virtually via Microsoft Teams  

Missoula Development Authority (MDA): 3:15 p.m. Wednesday, Jan. 28, 2026, in the Sophie Moiese Room in the Missoula County Courthouse, 200 W. Broadway, or virtually via Microsoft Teams 

The Missoula County commissioners will take public comment and consider adoption of the policy at a public hearing meeting: 2 p.m. Thursday, March 12, in the Sophie Moiese Room in the Missoula County Courthouse, 200 W. Broadway, or virtually via Microsoft Teams.