DEQ Commits $1.89 Million in Low Interest Loan Funds to Affordable Housing Project in Missoula
HELENA—Through its Multifamily Energy Retrofit Loan (MERL) program, the Montana Department of Environmental Quality (DEQ) has committed $1.89 million in loan funds to Wildflower Apartments near the south hills of Missoula. This is the first loan to be made through this program.
The MERL program provides low-interest loans to existing multifamily affordable housing facilities for energy efficiency improvements. The program aims to lower energy costs of multifamily housing facilities as well as improve comfort of the facility and reduce the energy intensity of the facility. Wildflower’s loan will focus on the buildings’ HVAC systems, increasing comfort to residents with improved heating, ventilation, and air conditioning. Once the upgrades are complete, residents may expect lower utility bills from the energy savings.
Upon receiving the loan, Missoula Housing Authority Executive Director Sam Oliver shared, “For the people who live at Wildflower, this is about being comfortable in their own homes, with reliable heat in January and relief on hot summer nights.” Oliver added, “Lower utility bills also leave families more room in their budgets for everything else.”
The Wildflower Apartment Complex project is a collaboration between several entities including the Montana Board of Housing, private capital, and the MERL program.
“Without these programs and partners, Wildflower would likely have been sold and the affordability status lost, risking displacement of over 170 residents,” United Housing Partners Developer Seth O’Connell said about the project. “The rehabilitation work we are undertaking will not only provide modern, updated housing, but will preserve the affordability restrictions on these units.”
“Renters will receive the benefits of energy savings, Missoula will retain these affordable housing units, and, as the loan is repaid, DEQ will continue to provide loans to similar projects across the state. That’s a win-win-win!” said Meranda Bass, Energy Resource Professional at DEQ. “We’re proud to be a part of the reason these units will remain affordable for years to come.”
Wildflower Apartments began construction to renovate 96 affordable housing units in September with a target completion date of February 2028.
The MERL program is funded by a $5.1 million grant DEQ received from the U.S. Department of Energy.
To learn more about the loan terms and requirements, or to submit an interest form for the MERL program visit DEQ’s website.
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