Permanent Affordability in
Gallatin County

A working group of the Regional Housing Coalition

Gallatin County is facing a growing challenge: how to ensure homes remain affordable, not just today but for generations to come. Permanent affordability is a long-term approach that uses legal tools, community partnerships, and targeted funding to make sure homes built or preserved with public resources remain affordable over time.

Permanent Affordability Playbook

The Permanent Affordability Playbook was developed by the Regional Housing Coalition (RHC), convened by One Valley Community Foundation, to support local leaders, developers, and advocates in building and protecting long-term affordable housing across our communities.

Read the Playbook
 

  • 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.

 

Explore Local Case Studies

The Project Evaluations provide in-depth snapshots of seven efforts across Gallatin County, including:

  • Bridger View – LEED-certified, mixed-income neighborhood in Bozeman

  • MeadowView Condos – Affordable ownership for Big Sky workers

  • The Lumberyard – LIHTC-funded rental community in Midtown Bozeman

  • Hidden Creek – Public-private partnership with housing and childcare

  • North 3rd Apartments – High-density affordable rentals near transit

  • West Babcock Land Trust – Longstanding CLT project with single-family homes

  • Washburn Circle – School district-led housing for essential workers

  • Stan's Garden - Resident Owned Cooperative (ROC)

  • Housing First Village - Supportive housing by nonprofit

Each includes a breakdown of funding tools, legal structures, lessons learned, and challenges to help others replicate and adapt what’s working.

Learn More

Tools & Resources

These resources provide data, tools, and reference materials to support permanent affordability efforts in Gallatin County and beyond. They are intended to help inform planning, policy decisions, and housing projects focused on long-term affordability.

 
 

Glossary of Key Terms

The world of housing policy comes with a lot of technical terms, programs, and acronyms. This glossary breaks down key terms used throughout the Permanent Affordability Playbook and project evaluations to help make the concepts clearer and more accessible, whether you’re a seasoned housing professional or just getting started.

 

  • 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.

  • 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.

 

Get Involved

Interested in learning more or contributing to the Regional Housing Coalition?
Contact Mark Bond at mark@onevalley.org or visit onevalley.org/regionalhousing.

Donate Here

Last updated 10/29/2025