HELENA — Over the next month, leaders across Montana will be making some key decisions on a new state program aimed at helping more Montanans buy a home.
In 2023, the Montana Legislature approved House Bill 819, which invested more than $200 million into a series of measures intended to address the need for affordable housing. One of them is a reinvestment program that will help lower- and middle-income families make down payments on a home.
“We want Montanans to be able to stay in Montana, where they work and live and have their families, and so this will be one support in that end goal,” said Hanna Tester, homeownership director for NeighborWorks Montana.
HB 819 set aside $50 million, which will be distributed by county through “community reinvestment organizations,” or CROs. Each CRO will set up a revolving fund using state funds and a local match. They’ll use the money to buy down up to 30% of the purchase price on a home for eligible families – those making 60% to 140% of the median household income. The homes bought through the program would be deed-restricted, to limit future price increases.
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If a county wants to participate in the program, they have until the end of December to choose a prospective CRO to handle it in their area. The state then has until Jan. 15 to approve the organizations’ plans.
Last week, the Lewis and Clark County Commission picked NeighborWorks Montana as their CRO. Tester says they have applied to serve about 30 counties across the state.
“I am impressed that this got passed,” she said. “I'm really excited to start working on it, and I think it's really good that so much attention is being brought to the issue of affordability.”
Tester says, if they get approval from the state, they plan to work with clients by directing them to housing counselors – a program they already have operating. Those counselors can then determine if the reinvestment assistance meets the clients’ needs.
“We've done this work for 25 years,” said Tester. “We have all of the nonprofit partnerships, we've got all of the lending partnerships, we understand the nuances in working statewide as well as within each county and each community.”
Tester says data shows 15 years ago, a Montana family making just over the median income could afford about 88% of a typical home, so they might need 12% of the value in down payment assistance. Today, that family would only be able to afford 72% of the value, so the need for assistance is much larger.
“The prospect of saving $100,000, $150,000 to support your down payment – it’s just out of the cards for most families,” Tester said.
She said this type of assistance will significantly expand the pool of properties these families can consider buying.
The main $50 million in reinvestment funding will be distributed proportionally, based on each region’s contribution to the state economy. The legislature also approved an additional $6 million to support housing in smaller counties that host state correctional and behavioral health facilities – specifically the Montana State Prison in Deer Lodge, Montana State Hospital in Warm Springs, Crossroads Correction Center in Shelby and Dawson County Correctional Facility in Glendive.
A spokesperson for Gov. Greg Gianforte’s office said in a statement to MTN that they’ve been in communication with key stakeholders as implementation of HB 819 continues.
