About the Housing Division
The Housing Division, established on July 1, 1995, consolidates housing programs within the Department of Commerce into one Division. The Division includes the HUD HOME Investment Partnerships Program, the HUD Tenant Based and Project Based Section 8 Housing Programs, and the Board of Housing and its programs. Housing Division work is mandated primarily in Title 2, Chapter 15; Title 90, Chapter 1, and Chapter 6, MCA; 24 CFR 91, and 92; 24 CFR 5, 792, 813, 887, 982, and 984; and the Governor's Executive Order 27-81.
Funding
The HOME Program is funded by an annual categorical federal grant from HUD. Grant funds are distributed using a competitive process to successful local governments and Community Housing Development Organizations with an allowed amount being held back at the state level to administer the program. Section 8 Housing Programs in the Housing Division are funded under performance based Annual Contribution Contracts with HUD. The Board of Housing portion of the Housing Division is funded by proprietary (enterprise type) funds derived from an administrative charge applied to mortgages financed and applications received, and no direct appropriations are provided in HB 2.
HOME Program
This program provides grant funds to eligible local government entities and Community Housing Development Organizations for assistance in financing new construction or rehabilitation of individual homes or rental units, tenant based rental assistance, and other eligible activities. Grants are awarded through a competitive process once each year. HOME program staff also coordinate completion of the Consolidated Plan, a five year planning document, with annual updates, required by the Department of Housing and Urban Development in order to receive federal funds for many state programs.
Section 8 Housing
Tenant Based - The HUD Section 8 Existing Housing program provides over 4,100 rent assisted units for very low income families, using the HUD Section 8 Housing Choice Vouchers and Moderate Rehabilitation programs, on behalf of very low income families and the elderly to ensure they have decent, safe, and sanitary housing. The program operates on a first come, first serve basis statewide, through a network of field agencies the department contracts with for administration of local operations in the program. Leases are entered on the open rental market between tenants and private landlords. The program makes a subsidy payment to the property owner on behalf of the tenant. Payments are based on applicable unit rent limits and tenants generally pay 30% of their income towards rent and utilities.
Project Based - The HUD Project Based Section 8 Contract Administration Program is the HUD contract administrator for low income rental properties HUD subsidizes throughout the state. The program provides rental assistance to projects at fixed locations instead of the tenants. Landlords perform administrative tasks at the local level. The agency performs annual property reviews, property management, and makes rent payments to owners. The agency earns fees from HUD under a performance based contract for the tasks performed. The Project Based Program renews contracts as they expire. Contract Managers prepare special damage claims, annual rent increases, respond to emergencies, check compliance for fair housing and waiting lists, on-site management reviews, follow-up to physical inspections, review of management decisions, and budget assistance to local property owners. The program provides over 4,000 units of rental housing in 108 projects, for low income and elderly families in the state.
Board of Housing
The Montana Board of Housing was created by the Montana Housing Act of 1975. The Board is an agency of the State and operates within the Department of Commerce for administrative purposes. Under the Housing Act the Board does not receive appropriations from the State's general fund and is completely self-supporting. Substantially all of the funds for the Board's operations and programs are provided by the private sector through the sale of tax-exempt bonds. The powers of the Board are vested in a seven member Board, appointed by the Governor, subject to the confirmation of the State Senate. The Board provides policy direction to the agency staff, authorizes bond issues, approves development financing and evaluates Board Housing Programs. These programs include the Single Family Program, Recycled Single Family Program, Multifamily Loan Programs, Low Income Housing Tax Credit Program, Housing Revolving Loan Fund and the Reverse Annuity Mortgage (RAM) Program.
