Multifamily Development in Montana

Housing Montana Fund

The 1999 Legislature found that current economic conditions, federal housing policies and declining resources at the federal, state and local levels adversely affect the ability of low-income and moderate-income persons to obtain safe, decent and affordable housing. Because of this, the Housing Montana Fund was established.  It is structured as a revolving loan account.

The Housing Montana Fund is used to provide loans to projects providing affordable housing in Montana. These projects typically need a final, small piece of financing to make them feasible.

The 2001 Legislature added three other funding sources to the Housing Montana Fund. Two sources are $500,000 from the Section 8 reserve account and approximately $3.4 million from the Temporary Assistance to Needy Families Grant (TANF). These two funding sources are transfers from existing programs. The third source is from direct donations that would qualify for a tax credit. These sources began July 1, 2001. The TANF funds were reduced to $700,000 by the 2002 special legislative session, which met in August of 2002.

The Montana Board of Housing received a $1.5 million grant from the Federal Home Loan Bank of Seattle through its Affordable Housing Program. This grant was specifically earmarked for the Montana Preservation Project. In order to maximize other funding sources, the grant was loaned by the MBOH to each project as 50-year deferred mortgages. If a project generates additional income, the loans may begin to pay back the money. But, if sufficient income is not generated, the loans will not be paid for 50 years. The MBOH has placed these mortgages in the Housing Montana fund, but as previously stated, these loans may or may not begin to be repaid for 50 years. Here is a list of the loans:

 

Project 

Location

Amount

1 Columbia Villa Columbia falls $ 316,800
2 Darlinton Manor Bozeman $  55,000
3 LaVatta Villa (Pebblestone Square) Deer Lodge $  60,000
4 Parkside Village Missoula $  10,400
5 Valley View Kalispell $ 551,200
6 Big Sky Apartments Kalispell $ 202,368
7 Green Meadow Apartments Libby $ 234,600
8 Parkside Apartments Hamilton $  69,632
 

TOTAL

 

$1,500,000

       

 

Funded through TANF 

   
9 TANF Loans (74 loans, down payment/closing) Statewide

$ 778,686

       

 

Funded through RLS funds

   
10 Gold Dust Missoula $ 143,000
11 Ronan Main Street Ronan $  65,000
12 Franklin School Great Falls $ 300,000
13 Buffalo Grass Cut Bank $ 327,660
14 North Star (Approved) Wolf Point $ 385,000
15 Valley Villas (Approved) Hamilton $ 300,000
 

TOTAL

 

$1,520,660

       
 

GRAND TOTAL

 

$3,799,346

                                                                                                 

 

 


HOUSING DIVISION | MONTANA DEPARTMENT OF COMMERCE
301 S. PARK AVE, STE 240 | PO BOX 200528 | HELENA, MT 59620-0528 | P: (406) 841-2840 | F: (406) 841-2841 | TDD: (406) 841-2702 | TOLL FREE: (800) 761-6264