With the Montana Community Reinvestment Plan in place, the Flathead will have $4.5 million available to support around 60 families to finance a home in the range of $500,000 and to sustain living and working in our valley. One important aspect is that the money will be allocated to middle class workers. This has been an area of concern because most subsidized housing that has come into the valley is for the lower class which is 30% ami (adjusted median income) or less. Right now, most county residents that rent make above that, yet they still have no chance of buying in the current market, which has changed even more drastically since 2020. Saving up for a down payment on a starter home has become a thing of dreams and fairy tales. By getting 30% of their home loan with no interest it will be as if they saved for years and get to keep their hard-earned money.
This not only allows them to afford a home they would not afford otherwise, it also creates a deed restricted property that only allows 1% equity growth annually. The result is that people will not be able to use the low interest loan buy a home and then grossly over charge on its re-sale. If they do sell, the funds made from the sale will go back to the funding pool for another family to apply for this assistance.
The deed restriction will stop the price gouging of the homes that are purchased through this program, a side effect that will help more than one family if the original program participant decides to sell the home. If it is 60 families that get support from this program, it will keep 60 homes in an affordable price range per the deed restricted guidelines. At least for these homes, we can put a stop to overpriced and out of control housing costs.
The housing crisis here cannot be fixed by one tool. Low interest loans are an important tool to increase homeownership for the working middle class and if you want this program in our county, please email the Flathead County commissioners or attend a county commissioner public meeting and give public comment. They must vote to approve by Dec. 31 and the clock is ticking.
Leanette Galaz
Northwest Montana Tenants United