How We Do It
Section 8 Programs:
The Moderate Rehabilitation Program
This program provides project-based rental assistance for low income families. The program was repealed in 1991 and no new projects are authorized for development. Assistance is limited to properties previously rehabilitated pursuant to a housing assistance payments (HAP) contract between an owner and a Public Housing Agency (PHA).
Project-Based Section 8
The Housing Division, as an agency, is the contract administrator for properties that the U.S. Department of Housing and Urban Development (HUD) manages throughout the state. They provide rental assistance to the projects instead of directly to the tenants. Landlords perform administrative tasks at the local level. The agency performs the property reviews, property management, and makes payments to owners. The agency earns fees from HUD for the tasks performed using tenant data and rent and payment structure. The Project-Based Program renews contracts as they expire. Program specialists do 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.
The Montana Board of Housing (MBOH) Programs:
Mortgage Revenue Bond (MRB)
MBOH offers a low interest rate, thirty year, fixed-rate mortgage to assist low and moderate income first-time homebuyers in purchasing homes in the State of Montana under the federal Mortgage Revenue Bond (MRB) program. The Board issues these tax-exempt bonds and uses the generated revenue to purchase loans from qualified lenders who originate them.
Mortgage Credit Certificates
The Board also converts part of its bond authority into Mortgage Credit Certificates, which provide a tax credit in conjunction with market-rate mortgages for first-time home buyers.
Low Income Housing Tax Credits
MBOH receives Montana’s allocation of tax credits each year and distributes those credits to developers of multifamily housing according to a competitive application process.
- Generally, when a successful applicant is granted credits they are sold to an investor or syndicated group of investors and the equity is used to reduce the amount of debt financing that the property owner will incur.
- This lowers the operating costs, and makes it economically feasible to operate the property at below-market rents.
- In exchange for the financing provided through the tax credit, owners agree to keep rents affordable for a period of 15 to 30 years for families and individuals with incomes at or below 60% of the local median income.
- The Montana Board of Housing monitors the properties during the compliance period to ensure that rents and residents’ incomes do not exceed federal limits and that the properties are well maintained
Reverse Annuity Mortgage (RAM)
MBOH enables senior Montana homeowners the ability to borrow the equity in their homes and use the additional monthly income to provide for their own in-home support. Lower income seniors who are 68 years old are eligible to apply.