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: $15,000,000

• The BOI and 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 - 3.0%)
• Maximum 24-month term.
• Projects must be funded by June 30th, 2026.
• Program Requirements:
  • Minimum gross density of 10 units for each acre.
  • Proceeds must be used for a construction loan.
  • Eligible developments must have at least one of the following which runs with the term of the security:
    • Deed restriction
    • Low-Income Housing Tax Credit
    • Community Land Trust

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