Multifamily Development in Montana

Risk Sharing Program


Type of Program 

HUD insured permanent financing units of multifamily rental property through a partnership between Montana Board of Housing (MBOH) and Department of Housing and Urban Development (HUD).

Eligible Applicants 

For-profit, non-profit, and governmental entities.

Types of Projects 

5 - 36 units meeting affordability guidelines. An exception may be granted by the Board if the project would provide a documented public purpose (ie: preservation of existing low income housing, meeting a community identified need etc). New construction and acquisition with substantial rehabilitation. Family, special needs or elderly housing. Must be complete living units.


First Mortgage


Loan amount less than 75% of appraised replacement cost/value

Loan Amounts

Maximum loan based on per unit maximums and loan-to-value as noted above

Debt Service Coverage

Minimum of 1.15 to 1

Loan Term

30 year fixed rate

Reserve Requirements

Escrows for property taxes and hazard insurance, reserve for replacement

Loan Rate

Determined by market at the time of bond sale

Fee Limitations

Management, builder and developer fees are limited


Total of 1% of mortgage loan amount, including origination fees

Mortgage Insurance Premium

.5% of outstanding mortgage amount annually (.45% to HUD, .05% to MBOH)

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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