Permanent Affordability in
Gallatin County

This is not a how-to manual or static housing report. Instead, it’s a flexible, evolving resource designed to:

• Define key terms and concepts related to permanent affordability

• Share lessons from local case studies across Gallatin County

• Highlight tools and funding sources that are working (and where gaps remain)

• Identify regulatory challenges and community misconceptions

• Offer guidance for anyone—nonprofit, developer, elected official, or resident—who wants to help make lasting progress

Here are 10 core takeaways from projects and research across the region:

1. Permanent affordability takes more work—but it matters.
   Market-rate housing is quicker to build. Affordable homes require more time, funding, and collaboration—and they must remain affordable long-term to be worth the investment.

2. Legal tools must fit the project and place.
   From deed restrictions to land trusts, the best approach depends on the type of housing and local context.

3. There’s always a funding gap.
   Building affordable housing almost always costs more than it can earn in rent or sale price. Grants, donations, and subsidies are essential.

4. Partnerships make it possible.
   No one can do this alone. These projects rely on coordination between nonprofits, cities, developers, funders, and residents.

5. Small projects can have big impact.
   Especially in rural areas or as pilot efforts, small-scale developments can show what's possible. Being “infrastructure-ready” makes them more viable.

6. Short-term rentals reduce long-term affordability.
   Without restrictions, affordable homes can be lost to the vacation rental market. Strong rules help protect local housing.

7. Zoning is just one part of the puzzle.
   Permits, density bonuses, and local incentives help—but they’re only effective when paired with the right funding and legal protections.

8. Public understanding is essential.
   Misconceptions about affordable housing can create barriers. Clear, honest communication builds support.

9. Every project offers lessons.
   Each development adds insight into what works and what doesn’t—especially in a high-cost, low-inventory region like ours.

10. Progress is happening.
    Success stories in Bozeman, Big Sky, West Yellowstone, and beyond show what’s possible when communities invest in long-term affordability.

Permanent Affordability
Homes that remain affordable over time through legal restrictions or shared ownership models.

Shared Equity
A model where homeowners share future appreciation with a nonprofit or public partner to keep homes affordable for future buyers.

Community Land Trust (CLT)
A nonprofit owns the land and leases it to the homeowner, reducing costs and ensuring long-term affordability.

Deed Restriction
A legal agreement attached to a property that limits resale price, income eligibility, or use (e.g., short-term rentals).

Tenure
Describes whether a home is owned or rented.

AMI (Area Median Income)
The income midpoint in a region. Affordable housing programs use AMI to determine eligibility (e.g., 60% AMI, 120% AMI).

Subsidy
Money (public or private) that helps close the gap between housing costs and what households can afford.

Gap Financing
Funding that fills the gap between total project cost and what traditional loans or investments will cover.

Down Payment Assistance
Grants or loans that help homebuyers cover upfront costs like down payments or closing costs.

Employer Subsidies
Assistance from employers to help workers afford housing near their job—common in high-cost areas.

Self Help Build
Programs where future homeowners help construct their own homes, often reducing costs and building equity.

ROCs (Resident-Owned Communities)
Mobile or manufactured home parks owned and managed collectively by the residents.

CoC Funding (Continuum of Care)
Federal funds for homelessness prevention, including supportive housing and case management services.

HOME
A federal grant program that helps build, buy, or rehabilitate affordable housing.

CDBG (Community Development Block Grant)
Flexible federal funds for local infrastructure, housing, and community development.

LIHTC (Low-Income Housing Tax Credit)
A federal program that provides tax credits to developers who build or preserve affordable rental housing.

LURA (Land Use Restrictive Agreement)
A legal contract required for LIHTC projects that enforces income and rent restrictions.

Shallow Incentives
Local incentives (like reduced parking requirements or density bonuses) for developers that include affordable units.

Vouchers
Rental subsidies that help low-income tenants afford private-market rent. Often called Section 8.

Project-Based Contracts
Rental subsidies tied to specific housing units. Tenants lose the subsidy if they move.

Willing Unit Owners
Landlords or property owners who voluntarily accept rental assistance like vouchers.

Low Reimbursement Rates
When housing providers receive less funding than it costs to operate units—making participation less attractive.

Onerous Requirements
Administrative burdens or complex rules that make it harder for landlords or developers to participate in affordable housing programs.