Linked Deposit

The Linked Deposit Program helps housing developers and Approved Lenders lower interest rates during the construction period of an affordable housing development.

HOMES Linked Deposit 

Available Funds: $0.00

• BOI and Approved Lender will negotiate a fully collateralized deposit per 17-6-102, MCA. Deposit amount will rely on credit quality and affordability of the project. 
• Housing developer pays Federal Home Loan Bank Community Advance Straight Line Amortizing CIA 2-year rate (FHLBCA) for the construction loan.
  • Approved Lender earns first 350 bps (3.5%).
  • BOI earns remainder (FHLBCA - 3.5%).
• Maximum 24-month term.
• Projects must be funded by June 30th, 2025.
• Projects eligible for the Low-Income Housing Tax Credit (LIHTC) may apply for more than $5,000,000. All other projects seeking more than $5,000,000 must receive BOI approval prior to application. 
• Program Requirements:
  • 40% of total units must provide for provisions to preserve long-term affordability of the housing that runs with the property for the term of the security.
  • Minimum gross density of 10 units for each acre.
  • Proceeds must be used for construction loan.

For program information and details, please contact Dan Villa at BOI.ED@mt.gov.