What We Do
The Housing Division creates affordable housing opportunities for Montanans whose needs are not met by the market. We use several federal funding sources to accomplish this:
We issue tax-exempt Mortgage Revenue Bonds
We use the proceeds from the sale of these bonds to purchase qualified First-Time Homebuyer’s mortgages from our lending partners. Borrowers benefit by their access to a lower-rate, 30-year fixed rate mortgage for up to 97% of home value.
We finance First-Time Homebuyer Education and Foreclosure Prevention Counseling
These valuable resources are offered statewide using U.S. Department of Housing and Urban Development (HUD) grants. The classes and counseling are offered within communities by a variety of partners. The result is borrowers who are confident and informed and homeowners who have a trusted advisor in their corner.
We allocate Low Income Housing Tax Credits
We allocate Housing Credits each year to developers of affordable multifamily housing through a competitive process. These credits are made available to each state under Section 42 of the Internal Revenue Code of 1986. This financing option allows developers a way have resources available during the construction phase, resulting in less debt service cost and they are able to offer low rents to income-qualified renters.
We issue Housing Choice Vouchers
Housing Choice Vouchers are financed by HUD and administered by the Housing Division. Eligible households use vouchers to rent privately owned homes of their choosing, paying 30% of their adjusted gross income towards rent and utilities.
This also includes:
- Veterans Affairs Supportive Housing (HUD-VASH) Vouchers
- Shelter Plus Care Vouchers
- Section 811 Supportive Housing for Persons with Disabilities Vouchers
We administer the Project-Based Section 8 Program
The administration of the Project-Based Section 8 Program is for properties that HUD manages throughout the state with rental assistance to the projects instead of the tenants. The agency earns fees from HUD for performing tasks such as doing special damage claims, calculating annual rent increases, responding to emergencies, ensuring compliance for fair housing and waiting lists, performing on-site management reviews and follow-up to physical inspections, reviewing management decisions, and offering budget assistance.
We provide the Reverse Annuity Mortgage (RAM) Program
This program was originally funded with income from the Montana Board of Housing’s (MBOH) Mortgage Revenue Bond issue, it is now operated as a revolving loan fund. The program allows low-income seniors to access the equity in their home in order to stay in their home and to live more comfortably while doing so.
We perform personable, professional, quality mortgage loan servicing
MBOH is able to process loan payments quickly and securely while also offering face-to-face or phone guidance to those who are experiencing problems making payments, most times averting delinquency or foreclosure.
We coordinate the Housing Coordinating Team
This team consists of an informal gathering of housing advocates from federal, state, non-profit, market developers, housing authorities, community leaders and economic development organizations. We have helped develop:
- Coordination of Housing Applications
- The Housing White Paper
- The MTHousingSearch website, a housing locator
- Fair Housing Advisory Committee
- Housing Technical Assistance
- Housing Resource Guide