Full Breakdown
Missoula City Council Approves Updated Affordable Housing Policy
3/2/2026, 1:58:33 AM
Overview of the Updated Housing Strategy
On February 27, 2026, the Missoula City Council voted 10-1 to approve an updated housing policy aimed at enhancing funding for the Affordable Housing Trust Fund and supporting tenant protections. This plan revises the original housing strategy, “A Place to Call Home,” adopted in 2019, in response to the growing challenges of housing affordability in Missoula. Council Member Mike Webb emphasized that while progress has been made, the city faces significant housing challenges, with wages not keeping pace with rising rents and home prices.
Key Recommendations and Funding Sources
The updated policy prioritizes identifying a sustainable revenue source for the Affordable Housing Trust Fund, which currently relies on annual allocations from the city council and revenue from land sales. The fund is set to receive a $4 million boost from the sale of the Riverfront Triangle property, although this revenue will not be immediate. Webb noted that ongoing, predictable funding is essential for effectively addressing the city's housing issues. The plan also suggests exploring alternative funding mechanisms, such as a voluntary fee program on specific business transactions, akin to a 1% assessment in Whitefish.
Support for Renters and Tenant Protections
The updated policy recognizes the importance of supporting renters, who constitute over half of Missoula's population. Recommendations include providing educational resources for landlords and tenants, as well as potential initiatives like a tenant-right-to-counsel program, although funding for such programs is currently lacking. The plan also advocates for advancing the mayor’s City Lands Redevelopment initiative, which aims to leverage city property sales for affordable housing projects.
Opposition and Concerns
Council Member Daniel Campbell cast the sole dissenting vote against the updated policy, expressing concerns about the city’s involvement in real estate and development. He opposed the idea of a mandatory tax to fund the Affordable Housing Trust Fund, suggesting that the city should limit its role in the housing market. In contrast, Council Member Kristen Jordan argued that investing in affordable housing ultimately saves taxpayer dollars, citing research that indicates the cost of neglecting housing issues is higher than proactive investments.
Housing Market Trends
According to the Five Valleys Housing Report, the median home price in Missoula decreased by 2.2% in 2025, marking the first decline since 2010. The report highlights an increase in home sales and improved housing supply, though conditions vary by neighborhood. The Sxwtpqyen/Mullan neighborhood saw the highest sales activity, while areas like Lewis and Clark and Lolo experienced an undersupply of affordable housing options.
Conclusion
The Missoula City Council's approval of the updated housing policy reflects a concerted effort to address the city's housing crisis through sustainable funding and support for renters. As the city explores new funding avenues and initiatives, the effectiveness of these measures will be critical in shaping the future of affordable housing in Missoula.
