The Montana Board of Housing (MBOH) has released a draft of its 2013 Qualified Allocation Plan following its QAP Work Session held on August 16, 2012.


The proposed 2013 QAP includes several revisions from previous years. MBOH has included clarifying information on its rent limitation policy and has integrated utility allowances into gross rent calculation. MBOH maintains its policy of only accepting utility allowances provided by HUD Section 8, USDA (Rural Development), or an approved public housing authority. Utility allowances from utility providers are still not accepted.


MBOH has also revised its policy on the 130% “basis boost”. In the past, MBOH has offered to reserve tax credits based on a “basis boost” of 30% for projects in a Qualified Census Tract (QCT) or a HUD designated Difficult Development Area (DDA). MBOH will now also offer the 30% “basis boost” to projects outside of these designated areas if MBOH staff determines an increase in tax credits is necessary to achieve the project’s feasibility. Areas that justify a “basis boost” may include:



  • Qualification of the application for the small project pool;
  • Qualification of the building location for Rural Development funding;
  • LEED certification, Enterprise Green certification, or other similar nationally recognized certification as approved by the MBOH;
  • Targeting of more than 10% of the project units to 40% or below area median income or more than 62% of units to 50% or below area median income; or
  • The project includes historical preservation or preservation of existing affordable housing


MBOH has received mixed comments on the suggested standards for obtaining a basis boost for non-QCT and DDA developments and invites further comments on this topic. The staff has also flagged several other topics that require further input. These include: how to determine the appropriate form and scale of the capital needs assessment to be submitted as part of the application; whether the board should eliminate the rule prohibiting the funding of swimming pools with LIHTCs; and whether language should be added to its Healthy Living Environments guidelines to encourage owners to establish policies that would promote healthy living, such as non-smoking policies.


The 2013 QAP draft also forecasts future changes for the 2014 cycle. MBOH will be changing its policy on market studies and will begin commissioning all market studies and requiring applicants to pay a share of the cost as part of the application fees. MBOH plans to release a Request for Proposals for Market Studies with more details to follow.

MBOH is accepting public comments on the draft through October 5, 2012. Comments may be sent to:


Montana Board of Housing

Attn Mary Bair

PO Box 200528

Helena, MT  59620


Or, by email to kguariglia@mt.gov or mbair@mt.gov.



UPDATE: MBOH will be holding a public hearing regarding the 2013 QAP on October 15, 2012 at 9:00am local time at the Homeword Missoula Offices and Conference Room, 1535 Liberty Lane, #116A, Missoula MT. This will be the last opportunity to submit comments on the 2013 QAP. The Board intends to vote to approve the 2013 QAP at its board meeting immediately following the public hearing. Click here for more information.


MBOH has also scheduled its first workshop on the 2014 Qualified Allocation Plan. It will be held November 29-30, 2012 at the Fairmont Hot Springs Resort. Contact Mary Bair for more information.

To read the 2013 QAP draft, please click here.