// 101 UNIT HOUSING PROJECT SEEKS $1.5M OF FEDERAL FUNDING

(click to see LB Lofts Presentation)

City Council will consider allocating $1.545 million in federal housing funds to construct 101 affordable apartments in the Billings Heights, leveraging the city's investment into a $25 million project that would help address the community's pressing affordable housing shortage.

HomeFront and Homeword are requesting $1.4 million in HOME Investment Partnership funding and $145,000 in Community Development Block Grant (CDBG) funding to build the LB Lofts near Sioux Lane and Twin Oaks Drive. The two-bedroom rental units would serve households earning 31-80% of area median income, with construction slated to begin in May 2026.

The Community Development Board has recommended approval, contingent upon the viability of stored building materials and firm funding commitments from other project sources. Staff note that approving the allocation would help the city meet federal expenditure deadlines while advancing affordable housing goals outlined in the city's Consolidated Plan.

Why it matters: More than 8,000 Billings households are currently waiting for affordable housing. This project would add 101 units to address that critical shortage while using donated infill land in an established neighborhood with existing infrastructure, schools, transit, and services. The city's $1.545 million represents just 6% of the total project cost, with the remaining $23.5 million coming from tax credits, bank loans, and developer fees—maximizing the impact of public dollars.

(click to see LB Lofts Presentation)

How it works: HomeFront, Billings' housing authority, will own and manage the property while Homeword serves as developer. The Montana Board of Housing awarded $6.5 million in Low-Income Housing Tax Credits (LIHTC) to fund 22 units. The city's contribution would help fund the remaining 79 units.

Timeline:

• October 13, 2025: City Council considers funding allocation
• May 2026: Construction begins
• December 2027: Construction completes; units available for rent

How did we get here? The project has undergone lots of community engagement since September 2023, including presentations to the Heights Task Force, a neighborhood meeting, Community Development Board reviews, and a July 8, 2024 City Council business meeting (Billings Chamber testified in support). HomeFront submitted its formal funding application in October 2024, and the Montana Board of Housing awarded tax credits in December 2024 to partially fund the development.

By the numbers:

• 101 units: Total affordable apartments (all 2-bedroom, 2-bathroom)
• $25,074,596: Total project cost
• $317,399: Cost per unit
• $1,545,000: City funding request (6% of total)
• $23,529,596: Leveraged from other sources (pending commitment)
• 49 units: Serving households at 51-80% area median income
• 30 units: Serving households at 31-50% area median income
• 22 units: Built with LIHTC tax credits from MT Board of Housing
• 8,000+: Households currently on public housing waiting lists

(table from Staff Memo)

The bottom line: If approved, this project would represent one of the largest affordable housing developments in recent Billings history, nearly doubling the city's previous single-project investment. The city's relatively modest contribution of federal funds leverages a significant amount of other private and federal resources to address growing housing needs with more new housing supply.

// BUSINESS MEETING AGENDA - 5:30 p.m. - BILLINGS CITY HALL

In this section, we will include the meeting agenda for you to view. Clicking on the items will take you to more information. No need to read it all, but if something catches your eye, be sure to check it out.

ADMINISTRATOR REPORTS - CHRIS KUKULSKI 

PUBLIC COMMENT on “NON-PUBLIC HEARING” Agenda Items: 1, 2 and 5 ONLY. Comments are limited to three (3) minutes or as set by the Mayor.  

1. CONSENT AGENDA -- Separations: 

A. Bid Awards: None 

B. Contract with Tyler Technologies for Public Safety software licenses and support. 

C. Purchase six (6) ZOLL Cardiac Monitors for the Fire Department; ZOLL Medical Corporation.   

D. Billings Community Foundation Grant for Fire Prevention and the Safety Squad Program. 

E. Montana Department of Environmental Quality (DEQ) Grant for purchase of an Airport shuttle bus. 

F. Resolution authorizing a permit for construction and maintenance of a pedestrian skyway at 1201 North Broadway. 

G. Bills for the Weeks of: 

1. September 2, 2025  

REGULAR AGENDA: 

2. HOME AND CDBG FUNDING to Homeword and HomeFront for construction of LB Lofts affordable apartment housing. Community Development (CD) Board recommends approval. 

3. PUBLIC HEARING AND FIRST READING ORDINANCE amending Billings, Montana City Code (BMCC) Section 22-406, Removal of snow, ice, etc., from sidewalks. Staff recommends approval.

4. JOINT PUBLIC HEARING FOR ANNEXATION 25-04 AND ZONE CHANGE 1070: Lots 66A1 and 67A1 of the Amended Lots 66A and 67A, Sunny Cove Fruit Farms Subdivision 

a. RESOLUTION APPROVING ANNEXATION 25-04: generally described as Lots 66A1 and 67A1 of the Amended Plat of Lots 66A and 67A, Sunny Cove Fruit Farms Subdivision. Staff recommends conditional approval. *Quasi-Judicial

b. FIRST READING ORDINANCE FOR ZONE CHANGE 1070: generally described as Lots 66A1 and 67A1 of the Amended Plat of Lots 66A and 67A, Sunny Cove Fruit Farms Subdivision. Zoning Commission recommends approval and adoption of the 10 review criteria. *Quasi-Judicial

c. PUBLIC HEARING AND FIRST READING ORDINANCE expanding the boundaries of Ward IV to include recently annexed property in Annexation 25-04: Lots 66A1 and 67A1 of the Amended Plat of Lots 66A and 67A, Sunny Cove Fruit Farms Subdivision. Staff recommends approval. 

5. SOUTH BILLINGS BOULEVARD URBAN RENEWAL DISTRICT (SBBURD) WATER AND SEWER UTILITY CONNECTION PROGRAM. South Billings Urban Renewal Association (SBURA) Board recommends approval.

PUBLIC COMMENT on “NON-AGENDA ITEMS”. Comments are limited to 3 minutes or as set by the Mayor.

COUNCIL INITIATIVES:

• Subdivision and Development Traffic Impact Study Requirement Modifications and Impact Fees (CM Aspenlieder)

 ADJOURN:

// WATCH THE MEETING ON COMMUNITY 7 TELEVISION

// CITY ADMINISTRATOR WEEKLY REPORT

City Administrator Chris Kukulski began the routine of sending a weekly report every Friday to City Council and department heads with the intent to, "communicate the highlights of the past week and any critical issues coming up." The most recent CA Report includes updates on:

• FEMA Funding for West End Reservoirs Require Signature
• Essential Air Service Will Remain Funded through Nov 2.
• And much more...

// GET MORE INVOLVED IN YOUR COMMUNITY

Below are some additional public meetings being held this week, along with information about when and where to attend.

🔸 Monday, October 13th

Energy and Conservation Commission Meeting

3:00 - 4:00 pm, 2251 Belknap Ave. 

🔸 Tuesday, October 14th

Yellowstone County Planning Board

4:30 - 6:30 pm, Council Chambers, 5th Floor, New City Hall, 316 N. 26th St. 

Midtown Community Collaborative Task Force

7:00 - 8:00 pm, Black Dog Coffee, 1528 N. 24th St.

🔸 Wednesday, October 15th

City Council Budget and Finance Committee

9:00 - 11:00 am, Rimrock Room, 5th Floor, New City Hall, 316 N. 26th St.

// THE SQUEAKY WHEEL

// BOARD & COMMISSION OPENINGS

The Mayor's Office is accepting letters of interest to fill the vacancies listed on the city website. For more information on each specific board, visit the city website. City Boards and Commissions are appointed by the Mayor, confirmed by City Council, are advisory only, and members serve without compensation.

Submit applications to: Mayor's Office, PO Box 1178, Billings, MT 59103-1178.

The DEADLINE for applications is October 6, 2025. (still listed after deadline)

BOARD OPENING (SEATS)

EBURD Advisory Committee (6)

Downtown Urban Renewal District (4)

SBBURD Advisory Committee (7)

REQUIREMENTS

At Large*

At Large*

At Large*

*— Must own, operate, or represent a business, property, or organization in the District or who otherwise have a significant vested interest or presence in the District. Two of the EBURD’s members must be owners or occupants of residential property in the District.

// IN CASE YOU MISSED IT - AI SUMMARY AND SOURCE LINKS

In this section we re-visit last week's meeting, providing:

• an AI summary (YouTube transcript analyzed by Claude's Sonnet 4.5) 
• links to the Community 7 video 
• draft minutes produced by city staff (if available) 

We'll revise and edit when necessary for clarity, brevity, and to avoid inaccuracies, which are sure to happen on occasion. And, considering the difficulty Council has had with audio feeds, it's likely that some comments or segments of the meeting will be missed in the video transcript.

BILLINGS CITY COUNCIL WORK SESSION - OCTOBER 6, 2025

Overview

The Billings City Council held a work session focused primarily on new Urban Renewal District agreements for the city's three Tax Increment Financing (TIF) districts. The meeting also included updates on the YVAS incinerator incident and a recent law enforcement operation. Council members engaged in substantive discussion about contract terms, administrative costs, and the future management structure of TIF districts.

Actions Taken and Directions to City Staff

• Contract Term Modification (30:01-31:13, 1:10:00-1:16:22): Council directed staff to restructure TIF agreements from three-year contracts to one-year terms aligned with the fiscal year (ending June 30), with the first contract running from approximately November 1, 2025 to June 30, 2026. Subsequent years would require renewal, with a 60-day notice period established for non-renewal decisions.
• Fee Structure Change (1:19:03-1:19:42): Council directed removal of specific multi-year fee amounts from the contracts, instead tying funding to annual budget approval processes. This eliminates the automatic 3% annual increases that were proposed in the Downtown TIF agreement.
• Purpose Statement Revision (1:25:14-1:28:04): Councilman Tom Rupsis requested revision of the contract's purpose statement to better reflect that districts implement comprehensive urban renewal plans, not just administer TIF grant applications.
• Little Davis Bacon Act Language (1:05:38-1:09:54): Councilman Bill Kennedy requested inclusion of prevailing wage language in the agreements, with clarification that this applies to development agreements.

Councilmember Notable Quotables

Councilman Bill Kennedy on contract flexibility (30:01-34:56):

"I would like to see a change in that term...the agreement shall be in effect from the effective date until June 30th of 2026 and then an option for year two and an option for year three...I just want to give the council an opportunity to look at all options over the next year."

Councilman Scott Aspenlieder on future management structure (1:17:05-1:18:25):

"I don't see us not renewing these contracts in June, but I think once that new council gets here and we have these conversations, I think we do have to have a more robust conversation next year about how we manage these things as a whole...having that one-year renewal or that yearly renewal process in place allows us at least next year to have a more robust conversation."

Councilman Tom Rupsis on the districts' broader purpose (1:26:04-1:27:18):

"The work that that we all hear our district consultants and partners doing goes far beyond that. The TIF grants and the administrative costs...the tax increment is the tool by which they use to implement the plan but the purpose why they exist and why we benefit from their partnership is the overall implementation of the plan."

Notable Public Comment

Mike Yakawich (19:30-22:44) - Praised city staff and services, including road work, parks, and library. Extended invitation to Council for behavioral health facility meeting on October 7 from 9-11 AM. Stated:

"We forget sometimes the good in our community...the quality of the staff we have here in our city...staff is amazing and I just want to thank you for that."

Kevin Nelson (1:41:46-1:44:42) - Defended the Dept. of Transportation's work on the Sixth Street underpass, stating:

"I don't think I've ever been held up more than one light cycle to get through that intersection. No one has had to sit on the top of their hood of their car in a rainstorm because the thing is flooded...I think for what they had to work with, they really did really pretty good."

Meeting Statistics

• Duration: Approximately 1 hour 45 minutes
• Primary Speakers by Time:
• Katy Schreiner (Downtown Billings Partnership) had the longest single speaking period at approximately 8 minutes (49:07-57:24)
• Councilman Scott Aspenlieder spoke extensively on multiple occasions regarding TIF administrative costs
• Mayor Bill Cole facilitated discussion throughout
• Public Comment: 5 speakers during general public comment periods

Council Members Present: 10 council members appear to have been present based, with Councilwoman Shaw excused.

Additional Items of Interest

Incinerator Update (1:24-2:45): City Administrator Chris Kukulski reported continued work with the Dept. of Environmental Quality toward obtaining a certificate of fitness. A contract with a cleanup firm is expected to be signed late in the week, with work potentially extending into the following week.

Law Enforcement Operation Update (3:00-9:43): Police Chief St. John provided detailed overview of a coordinated drug task force operation involving properties in Worden and on King Avenue East. The operation resulted in recovery of 53 firearms (17 stolen) and addressed public concerns about the treatment of a 90-year-old resident. Chief St. John emphasized:

"If there's going to be outrage about this entire incident, it should be at the grandson for bringing a criminal activity, criminal enterprise into grandmother's residence."

City Administrator Review (1:40:41-1:41:24): Council Member Boyett noted that Chris Kukulski's performance review is due November 12, with HR sending surveys to department heads within 10 days.

Upcoming Capital Improvement Plan (1:28:12-1:29:18): City Administrator Kukulski highlighted that the Capital Improvement Plan will be coming to work sessions in November, describing it as "one of the most important things coming up to you in the near future," involving "hundreds of millions of dollars of investment over an extended period of time."

// ADDITIONAL BILLINGS CHAMBER RESOURCES

// BUSINESS ADVOCACY SPONSORS