Linked Deposit

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

HOMES Linked Deposit 

HOMES Linked Deposit Program remaining funds as of November 28, 2023: $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 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:
  • Minimum gross density of 10 units for each acre.
  • Proceeds must be used for construction loan.

Non-HOMES Linked Deposit 

Non-HOMES Linked Deposit remaining funds as of November 28, 2023: $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 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:
  • Proceeds must be used for construction loan.
  • No minimum acreage requirement.

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