UNDERSTANDING POLICIES AND IMPACT

We believe that lasting change requires more than just direct services, it also requires shaping the systems that impact our customers’ lives. That’s why we engage in policy work at the federal, state, and local levels. We support policies that strengthen the social safety net, expand access to community housing and transportation, reduce food insecurity, and promote economic opportunity for all.

Current Policies to Watch

  • View federal funding updates here.

  • Understanding CI-134 and Potential Impacts to Local Services

    We closely monitor policy decisions that may impact our ability to support individuals and families across Southwest Montana. One proposal currently being discussed is Constitutional Initiative 134 (CI-134), a ballot initiative that would make changes to Montana’s property tax system by resetting property tax levels and limiting future increases.

    While conversations about housing affordability and property taxes are important, changes to local revenue sources can also impact the services and infrastructure communities rely on every day.

    According to analysis from the Montana Budget & Policy Center using data from the Montana Department of Revenue, CI-134 could result in an estimated loss of nearly $200 million in funding for local governments across Montana. Some communities could see property tax revenue reduced by nearly 30%.

    Local governments are important partners in addressing community challenges, including housing affordability, homelessness, food security, and other essential needs. In HRDC’s upcoming fiscal year budget, more than $1.6 million comes from local government partnerships that help support programs and services across our region.

    A significant reduction in local government funding could impact the ability of communities to invest in collaborative solutions that support local residents.

    Learn more:

  • WARD Initiative - On Ballot November 4, 2025


    What is the Water Adequacy for Residential Development (WARD) ballot initiative?

    On November 4, 2025, Bozeman voters will decide on the Water Adequacy for Residential Development (WARD) initiative. This measure would require new developments of three or more units that use the City’s cash-in-lieu of water rights system to set aside 33% of units as affordable housing. Nearly all new development in Bozeman relies on this water system.


    What could this mean for Bozeman?

    Although intended to create more affordable housing, multiple independent reviews show WARD could reduce overall housing supply and increase costs:

    • Developers may find projects financially infeasible within Bozeman City limits, which could lead to sprawl and less efficient development patterns for water usage.

    • With fewer homes being built, prices for existing homes would likely rise further.

    The City of Bozeman hosted a public work session on the initiative, which you can watch here.


    Additional Analysis of WARD

    • Regional Housing Coalition (RHC) Analysis: The RHC, a partnership of local governments, developers, and nonprofits, reached similar conclusions.

      • The capital gap—the difference between what it costs to build housing and what households can afford—is the largest barrier to affordable housing.

      • Without new subsidies, requiring 33% affordability would make most projects unworkable, shifting development to the County where infrastructure is limited and sprawl would increase.


    Independent Analysis of WARD

    • EPS (Economic & Planning Systems, Inc.) Study: Commissioned by the City of Bozeman, EPS modeled the initiative’s impact on sample projects.

      • A 30-unit subdivision projected to earn a 10% profit without WARD could instead lose $25,000 per home under WARD (a total loss of 4%).

      • A 90-unit apartment project, already infeasible in today’s market, would require $2.6 million more in subsidies to work under WARD.

    Read the full RHC analysis and EPS report for more information.


    Why is this the case?

    Affordable housing at WARD’s scale requires major subsidies like donated land, tax credits, or public funds. Without them, developers cannot cover the gap between costs and affordable prices.


    Want to explore the math yourself?
    Try the Urban Institute’s tool: The cost of affordable housing: Does it pencil out?