OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Economic Vitality Board Meeting: Proposed Updates to Affordable Housing Ordinance - April 1, 2026

City CommissionWednesday, April 1, 2026
BodyBozeman, Montana
SessionCity Commission
DateWednesday, April 1, 2026
StatusFILED
Video Record
0:00 / 1:19:13

Transcript — Verbatim
0:02

I'll start it in the office.

0:13

Oh, yeah, I think the mic is on too.

0:46

Thank you, Jesse.

0:49

All right.

0:50

I am calling the economic vitality board meeting to order.

0:54

It is April 1st.

0:56

Do we have any disclosures tonight?

1:02

I'll make a couple disclosures.

1:06

One, I was involved in putting together and circulating a petition to the city commission.

1:13

Oh, is there a del there's a delay?

1:17

Should I just keep going?

1:21

Um I was involved in putting together a petition and um to the city commission asking for them to consider um changing the height allowance in the B3 zone from 90 feet back down to 60 feet.

1:32

Um one of the cited concerns was about um being able to leverage, unable to leverage the additional height if it's given by right for affordable housing, so that might be relevant to the discussion about affordable housing incentives tonight.

1:46

Um the other disclosure I guess I'll make is that I recently authored a guest column in the Bozeman Daily Chronicle that was about the neighborhood conservation overlay district, but did mention affordable housing and the multifamily vacancy rate.

1:59

So also might come up in tonight's discussion.

2:02

Thanks.

2:04

Thank you.

2:05

Any other disclosures tonight?

2:09

All right.

2:10

We don't have any minutes from last month, so we don't have to worry about that.

2:14

Or we may have minutes, but we don't have any to pass, right?

2:18

Correct.

2:18

We have minutes, but because um that they're just not prepared for your uh motion of vote tonight.

2:23

No problem.

2:24

We'll do that in May then.

2:26

Do we have any changes to the agenda?

2:29

Chair, I'm not aware of any changes to the agenda, but if you would allow me just a moment to clarify uh a statement in the um memorandum that I submitted to the EV board.

2:37

I just want to make sure that everyone is clear about the language that I used in sentence number one.

2:41

It was brought to my attention that the city that it could be construed that but by using the word finally in that first sentence, the city commission finally adopted that I was expressing some level of frustration as I was writing this, but that's in fact not the case.

2:53

The city commission has a preliminary adoption and a final adoption as part of the process.

2:58

And so what I was referring to very inarticulately in this first sentence was the city commission finally adopted in that it was the final adoption.

3:07

Just wanted to make that clarification.

3:09

Thank you.

3:10

Thank you for that clarification then.

3:14

All right, I'm going to um explain how people can give public comment.

3:19

So this is a time where people can comment on any non-agenda matter falling within the scope of the economic vitality board.

3:27

There'll also be a time in conjunction with each agenda item for public comment relating to that item, but you may only speak once per topic.

3:36

Please note the board cannot take action on any item that does not appear on the agenda.

3:42

All persons addressing the board shall speak in a civil and courteous manner, and members of the audience shall be respectful of others.

3:50

Please state your name.

3:51

Please state if you're a resident of the city.

3:54

And please state if you're a property owner.

3:56

If we're in a clear audible tone, and we do ask that you limit your comments to three minutes.

4:12

I think a request online.

4:14

All right, thank you, Jesse.

4:16

All right, we're gonna move into our discussion, and I'm gonna have Brett come and introduce um your our other presenter.

4:24

Thank you, Chair.

4:25

Yes, um, I'd like to welcome and introduce Brian Geyer, our community housing manager to the podium to present.

4:31

Pardon me, some material uh that we want to discuss with this board as it relates to updating the affordable housing ordinance.

4:37

So the affordable housing ordinance was adopted back in 2025, and uh we have seen some of the outcomes of the ordinance and uh we are also now in a position to see where it can be improved based on wo on how we've been using it.

4:52

There have been some changes at the legislative level that we also need to now change our local ordinance to reflect those changes, and we have some um uh we also need to think about um as those legislative changes impact our incentive program.

5:05

We need to start thinking about where can we find other incentives that might be suitable um uh for the affordable housing program through the ordinance.

5:13

So with that, I'd like to introduce Brian Geier, who's gonna talk a little bit about our proposed um some of our proposed changes, and our goal tonight is to um get these changes that we suggest out on the table for discussion for this body.

5:27

We also will be doing a work session with the community development board, um, who is the statutorily required body that must at some point in our process approve the ordinance before it goes to the city commission.

5:38

So our intent is to do um have this conversation with the EV board, do a work session with the community development board.

5:45

That's a non-action uh item as well.

5:48

Then we will uh bring an order, we will bring the ordinance back to this body for its review once it's been updated, and then we then go one more time back to the community development board.

5:59

Finally, then we go to the city commission.

6:01

So tonight is the first in a series of conversations about updates to the community housing ordinance.

6:06

And so uh with that, welcome, Brian.

Discussion Breakdown — Share of Meeting
Affordable Housing█████████████████████████████████████████████81%
Procedural██████11%
Parking██4%
Land Use Planning██4%
Summary of Proceedings

Economic Vitality Board Meeting: Proposed Updates to Affordable Housing Ordinance - April 1, 2026

On April 1, 2026, the Economic Vitality Board (EVB) of Bozeman, Montana, convened at 6:00 PM to discuss proposed updates to Ordinance 2025-001, the Affordable Housing Ordinance (AHO). Presenters Brian Guyer (Community Housing Manager) and Brit Fontenot (staff) outlined five major updates aimed at improving clarity, flexibility, and alignment with market conditions and state legislation. The meeting included disclosures from the Chair and a brief FYI segment on upcoming city commission items. No public comments were received, and no formal votes were taken; the item was for discussion only.

Disclosures

  • The Chair stated involvement in a petition to the City Commission requesting a reduction of the height allowance in the B3 zone from 90 feet back to 60 feet, citing concerns about leveraging additional height for affordable housing. The Chair also authored a recent guest column in the Bozeman Daily Chronicle regarding the neighborhood conservation overlay district and affordable housing.

Discussion Items

  • Addition of For-Sale Housing Provisions: The current AHO only addresses rental units and cash-in-lieu. Staff proposed creating a separate framework for for-sale units, as stewardship of for-sale affordable units (e.g., resale formulas, buyer qualifications) is more challenging for the city. A consultant from EPS (Denver) has been engaged to develop a cash-in-lieu formula for for-sale units that may consider unit price or square footage rather than just bedroom count.
  • Cash-in-Lieu Amount Update: The City Commission recently approved a formula for rental cash-in-lieu based on the difference between average new construction rental rates and established affordable rates, multiplied by 20 years. For a one-bedroom unit at 60% Area Median Income (AMI), this results in approximately $200,000. The funds are flexible and can be used for gap financing on LITEC projects, down payment assistance, or other housing priorities.
  • Creation of a LITEC Track: Staff identified redundancies between city requirements and federal Low-Income Housing Tax Credit (LITEC) guidelines. For example, the city requires 5% of units to be affordable at 60% AMI for Type A incentives, but LITEC projects are often 100% affordable. A LITEC-specific track would allow federal compliance documents to satisfy local requirements, streamlining approvals. Approximately 1,100 LITEC units are in the pipeline, with Bozeman hosting the majority of 4% LITEC projects in Montana.
  • Replacement of Type B Parking Incentives: State law effective October 2026 eliminates minimum parking requirements for affordable housing projects, rendering the AHO's parking incentives ineffective. Staff is exploring replacement incentives such as expedited review, a cap-and-trade model, or other code adjustments, but noted that options like reduced landscaping requirements provided insufficient value.
  • Streamlined Ordinance Update Process: Staff proposed a more predictable update process, potentially triggered by annual HUD data changes or market shifts, to avoid delays. The update process will involve multiple board reviews before final adoption by the City Commission.

Key Outcomes

  • No formal votes were taken; the board provided feedback and asked clarifying questions. Staff will incorporate input and present a more complete draft to the EVB at a future meeting (likely summer 2026).
  • Next steps include a work session with the Community Development Board, followed by a return to the EVB for further review, then final approval by the City Commission.
  • Staff will keep the EVB informed as the ordinance update progresses.

FYI & Upcoming Events

  • Deputy Mayor noted upcoming City Commission items: April 14 work session on pedestrian and traffic safety, and April 28 discussion on commission priorities.
  • Brit Fontenot announced an April 21 special presentation on an economic impact analysis of the Yellowstone Fiber Network, which will be shared with the board.
  • Belonging in Bozeman topics are expected before the EVB in the next one to two months.

Meeting Transcript

I'll start it in the office. Oh, yeah, I think the mic is on too. Thank you, Jesse. All right. I am calling the economic vitality board meeting to order. It is April 1st. Do we have any disclosures tonight? I'll make a couple disclosures. One, I was involved in putting together and circulating a petition to the city commission. Oh, is there a del there's a delay? Should I just keep going? Um I was involved in putting together a petition and um to the city commission asking for them to consider um changing the height allowance in the B3 zone from 90 feet back down to 60 feet. Um one of the cited concerns was about um being able to leverage, unable to leverage the additional height if it's given by right for affordable housing, so that might be relevant to the discussion about affordable housing incentives tonight. Um the other disclosure I guess I'll make is that I recently authored a guest column in the Bozeman Daily Chronicle that was about the neighborhood conservation overlay district, but did mention affordable housing and the multifamily vacancy rate. So also might come up in tonight's discussion. Thanks. Thank you. Any other disclosures tonight? All right. We don't have any minutes from last month, so we don't have to worry about that. Or we may have minutes, but we don't have any to pass, right? Correct. We have minutes, but because um that they're just not prepared for your uh motion of vote tonight. No problem. We'll do that in May then. Do we have any changes to the agenda? Chair, I'm not aware of any changes to the agenda, but if you would allow me just a moment to clarify uh a statement in the um memorandum that I submitted to the EV board. I just want to make sure that everyone is clear about the language that I used in sentence number one. It was brought to my attention that the city that it could be construed that but by using the word finally in that first sentence, the city commission finally adopted that I was expressing some level of frustration as I was writing this, but that's in fact not the case. The city commission has a preliminary adoption and a final adoption as part of the process. And so what I was referring to very inarticulately in this first sentence was the city commission finally adopted in that it was the final adoption. Just wanted to make that clarification. Thank you. Thank you for that clarification then. All right, I'm going to um explain how people can give public comment. So this is a time where people can comment on any non-agenda matter falling within the scope of the economic vitality board. There'll also be a time in conjunction with each agenda item for public comment relating to that item, but you may only speak once per topic. Please note the board cannot take action on any item that does not appear on the agenda. All persons addressing the board shall speak in a civil and courteous manner, and members of the audience shall be respectful of others. Please state your name. Please state if you're a resident of the city. And please state if you're a property owner. If we're in a clear audible tone, and we do ask that you limit your comments to three minutes. I think a request online. All right, thank you, Jesse. All right, we're gonna move into our discussion, and I'm gonna have Brett come and introduce um your our other presenter. Thank you, Chair. Yes, um, I'd like to welcome and introduce Brian Geyer, our community housing manager to the podium to present. Pardon me, some material uh that we want to discuss with this board as it relates to updating the affordable housing ordinance. So the affordable housing ordinance was adopted back in 2025, and uh we have seen some of the outcomes of the ordinance and uh we are also now in a position to see where it can be improved based on wo on how we've been using it.

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