New Housing Development Uses Infrastructure Funding Model
Developers are utilizing tax-funded infrastructure support to build four income-restricted condos in Missoula.
Updated on Oct. 21, 2026 in Construction
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Kind Home Cooperative has broken ground on Serviceberry Grove Homes, a four-unit residential development in Missoula. The project aims to add permanently affordable housing stock through a public-private partnership.
Why it matters
Local housing shortages have driven developers to leverage public-private partnerships to increase inventory for middle-income residents. This model utilizes deed restrictions and public funding to maintain long-term affordability in a rising price environment.
The project delivers four income-restricted two-bedroom condos targeting households earning up to 120% of the area median income. Infrastructure costs were supported by Tax Increment Financing, while the site was provided by a local land trust.
The players
Kind Home Cooperative
A developer focused on residential construction and cooperative housing models.
Front Step Community Land Trust
A mission-driven organization that secures and holds land to ensure long-term housing affordability.
Missoula Redevelopment Agency
A local government entity that manages tax increment financing districts to spur urban development and infrastructure improvement.
The details
The development relies on a collaborative framework involving Kind Home Cooperative, Front Step Community Land Trust, and the Missoula Redevelopment Agency. By utilizing Tax Increment Financing to cover essential infrastructure like fire hydrant installation, the partners reduce the upfront capital requirements for the residential build. Developers are leveraging prior home construction and remodeling experience to manage the site as they look to address local affordability gaps.
Timeline
October 21, 2026: Groundbreaking ceremony occurred.
2027: Expected completion of the housing project.
Market Landscape
Serviceberry Grove Homes utilizes Tax Increment Financing to bypass traditional infrastructure cost barriers that often stall small-scale residential developments. This approach tracks with broader efforts by local agencies to incentivize private developers to fill specific middle-market housing gaps.
Operators in the residential space should monitor how Tax Increment Financing is allocated toward site-specific infrastructure to lower project costs. Evaluate if local land trust partnerships offer a viable path to securing land for future affordable residential or mixed-use builds.
The takeaway
The project demonstrates how mid-sized developers can successfully navigate the rising cost of land and infrastructure through public-private partnerships. Consider reviewing local Redevelopment Agency dockets for similar site-specific infrastructure support programs available in your jurisdiction.
Further reading
For more on residential development trends, see Construction.
Source note: This article includes information reported by KPAX News.
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