Linked Deposit

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

The Linked Deposit Program will begin accepting applications on June 10, 2025. The applications will be for FY25 fundings (July 1, 2025 – June 30, 2026).

Minimum funds to be available July 1, 2025: $65,000,000.

•  Three units per acre: $50,000,000
•  Ten units per acre: $15,000,000

These funds are revolving; once projects are completed and deposits are returned to the Board of Investments (BOI), the funds will be available for new projects. This page of the website will be updated to show the available funds as funds are reserved and returned. 

Program Description:

• The BOI and an Approved Lender will negotiate a fully collateralized deposit per 17-6-102, MCA. The deposit amount will depend on the project's credit quality and affordability. 
• 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 300 bps (3.0%)
  • BOI earns the remainder (FHLBCA less 3.0%)

Program Requirements: 

• Maximum 24-month term.
• Projects must be funded by June 30th, 2026. 
• Up to $106 million may be used for projects meeting a minimum gross density of ten units per acre. See the top of the page for the actual available funds.
• Up to $50 million may be used for projects meeting a minimum gross density of ten units per acre. See the top of the page for the actual available funds.
• Deposits are limited to $10 million per loan. 
• Proceeds must be used for a construction loan.
• No less than 30% of the residential development is preserved for long-term affordability by using at least one of the following methods, which must run with the property for the term of the security:
  • Deed restrictions, regulatory agreements, or restrictive covenants filed with respect to the property, 
  • Low-Income Housing Tax Credit, or
  • Community Land Trust.
• This Program may not be combined with:
  • The bond guarantee program provided in HB 505 (2025), or
  • A community reinvestment organization as created in 90-6-147, MCA, or a similarly structured organization or financing mechanism.
    
    

For program information and details, please contact Sam Holman at 406.444.1214.