In 2023 the Montana Legislature passed House Bill 819 which allocates $50M to a Home Buyer Assistance program for homebuyers in Montana. Each county is earmarked a certain amount of the $50M based on County Gross Domestic Product
Pillars of HB819
Homebuyer Assistance
The program will provide homebuyers 30% of the cost of the home as a loan or an investment. In exchange for this assistance homebuyers agree to an equity cap of 1% per year.
Eligibility
Households are eligible if they earn between 60% and 140% of Area Median Income (AMI).
CRO Requirements
The program also requires Community Reinvestment Organizations to provide a 1:1 match of program funding, making the total pool $100M.
What is a Community Reinvestment Organization (CRO)?
CRO is a new type of organization created by HB819. Qualified and interested organizations applied to become a CRO on or before September 30, 2024. The state will approve or deny these applications on or before December 31, 2024.
HB819 ascribes program oversight to Community Reinvestment Organizations (CRO). CROs must be federally recognized charitable organizations. For a county to access the funds allocated to them, the county must sign a resolution to select a CRO
CROs are entirely responsible for execution of the program, including loan underwriting, loan servicing, and raising match.
Why does NWMT want to serve your county?
As a CDFI working statewide in Montana for more than 25 years, NWMT has a sense of responsibility to ensure the program established in HB819 is executed with responsibility, transparency and collaboration. This is a unique opportunity where a large sum of taxpayer funding has been allocated to housing and we want to make this opportunity work in the best way possible for the people it is intended to support: Montana’s workforce.
NWMT is a statewide HUD-certified housing counseling and education intermediary, providing HUD-approved housing counseling and education statewide through subgrantee housing counseling agencies. NWMT has been an approved FHA secondary lender and an approved bona fide not-for-profit with the State of Montana Division of Banking & Financial Institutions since 2010.
$24M+
lent in down payment assistance
$12M
current down payment assistance loan portfolio
1.38%
down payment assistance default rate (national average: 1.73%)
Contact Us
Hanna Tester
Homeownership Director, NeighborWorks Montana
[email protected]
406-604-4548