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. Homes today cost more to build than most people can afford. 

   There is always a financial gap for permanent affordable housing. Fluctuations in lumber, lending, labor, and infrastructure are major hurdles. Mixing incomes in neighborhoods and land donations can no longer provide enough offset. 

2. Legal tools must fit the project and place.

   There’s no one-size-fits-all solution. Rentals often use deed restrictions, while ownership models like condos and townhomes often work best as community land trusts.

3. Partnerships make it possible.

   Permanently affordable housing succeeds through collaboration—between nonprofits, developers, governments, funders, and the community.

4. Each project teaches us something new.

   While no two projects are the same, each one provides insights that strengthen future efforts. There is value in sharing lessons learned. 

5. Share wins and show progress.

   Highlighting what’s working shows that permanent affordability is possible—and that the investment pays off for the whole community. 

6. Creating and maintaining affordability takes more work—but it matters.

   Market-rate housing is quicker to build, but 

   affordable homes take more time, funding, and 

   Coordination. Since they rely on public resources, 

   it’s essential they stay affordable over time.

7. Small projects can have a big impact.

   This is particularly true in communities where affordable housing is making a debut or acting as a pilot project.  Having a site be “infrastructure-ready” helps make projects viable. 

8. Short-term rentals threaten affordability.

   Projects with long-term affordability restrictions should include specific prohibitions on short-term rentals to reserve them for people who live and work here. Short-term rentals threaten affordability.

   Projects with long-term affordability restrictions should include specific prohibitions on short-term rentals to reserve them for people who live and work here. 

9. Regulations are just one piece of the puzzle. 

   State and local rules and timing matter, but so do land costs, funding sources, and public perception.

10. Public understanding is essential.

    Misinformation about affordable housing can stall progress. Honest, clear communication helps build trust and support.

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.