The Economic Vitality Board held its first discussion on April 1st regarding proposed updates to Bozeman's Affordable Housing Ordinance, which was adopted in 2025. Community Housing Manager Brian Geyer presented five main changes aimed at improving the ordinance based on implementation experience and changes in state law. The updates include establishing separate provisions for for-sale versus rental housing, implementing a newly approved rental cash-in-lieu formula (which calculates affordability costs at roughly $200,000 per one-bedroom unit at 60% area median income), and creating a streamlined review track for Low-Income Housing Tax Credit projects to reduce redundancies with federal compliance requirements.
The discussion revealed significant concerns about the current incentive structure. Board Member Natsuki Nakamura questioned whether the city is giving away enough in building height allowances for modest affordable unit requirements, citing examples like the Northern project where developers received additional stories. Geyer acknowledged the for-sale incentive math "did not feel commensurate" with what developers were allowed to build. The board also addressed the elimination of parking minimums by state law come October, which will neutralize what has been the ordinance's most heavily utilized incentive tool. Staff is exploring replacement incentives including expedited review processes and potential pricing-based formulas that would reward middle-income housing development.
This is the first step in a multi-step process. The proposed changes will move to the Community Development Board for a work session, return to the EV Board, go back to Community Development, and finally proceed to the City Commission. No vote was taken. Staff indicated that the Fowler Housing Project is driving urgency for the for-sale housing provisions. The board requested regular updates on the ordinance progress.