Residents Urge Flathead County Commissioners to Accept State Funding for Homebuyer Assistance Program
Officials have a deadline of Dec. 31 to accept the $4.5 million in state funding that was set aside following the 2023 Legislature to address workforce housing
By Maggie Dresser
Dozens of residents on Tuesday urged the Flathead County Board of Commissioners to accept $4.5 million in state funds through a homebuyer assistance program developed by the Montana Legislature to make workforce housing more attainable across the state. Facing an end-of-year deadline before the funding window closes, a quorum of Flathead County commissioners has been reluctant to consider the program as an agenda item despite the broad public support and desperate local need for workforce housing.
Commissioners Randy Brodehl, Pam Holmquist and Brad Abell have a deadline of Dec. 31 to take steps to accept the funding, or the money will be reallocated elsewhere. As of Tuesday afternoon, county administrators still had not added the item to the commissioners’ agenda.
According to Flathead County Administrator Pete Melnick, commissioners are not taking action at this time.
The funding is part of a $50 million allocation that the Montana Legislature set aside in 2023 following the passage of House Bill 819, which was crafted to create more attainable workforce housing across the state. To manage the funding, lawmakers directed local housing nonprofits to establish Community Reinvestment Organizations (CRO) for the new homebuyer assistance programs. The CROs would then be tasked with matching the government’s share of the funding allocation, for a total of $9 million in homebuyer assistance.
NeighborWorks Montana (NWMT), a housing nonprofit that creates homeownership opportunities for the state’s workforce, has applied to become a CRO in several counties, including Flathead, to help implement the program. If approved, it would provide homebuyers with 30% of the cost of a home as a loan or an investment while recipients agree to an equity cap of 1% per year. The cap allows the remainder of the equity to be recycled back into the program to provide long-term affordability for future homeowners. Eligible households must earn between 60% and 140% of the area median income (AMI).
However, in order to receive the funding, Flathead County commissioners must take steps to join a local CRO, which has become a sticking point in the path toward adopting the program.
“Each county wishing to participate in the program shall make an affirmative decision to participate by joining a community reinvestment organization,” according to the text of House Bill 819. “Counties that do not join a community reinvestment organization are ineligible to participate in the program.”
Flathead County residents, many of them donning Santa Claus hats to demonstrate support for the program, asked commissioners during public comment at the Dec. 17 meeting to add a resolution to the agenda, which would be the next step in accepting the funds as the deadline approaches.
Erica Wirtala, the public affairs director for the Northwest Montana Association of REALTORS®, pointed out that Flathead County was the only county besides a few eastern Montana counties that has not accepted the funding.
“This [county] sticks out like a sore thumb and it’s an embarrassment that we have the second highest housing crisis here and yet we are not moving forward with a helping program,” Wirtala said.
Several residents seeking homeownership also spoke in support of the funding, telling commissioners that the lack of housing has prevented the local workforce from laying down roots in the Flathead Valley.
“My biggest barrier to establishing myself back at home was securing affordable housing,” Jonathan Sorensen said. “Having that extra assistance would change the entire game for us. As a two-parent, working household, homeownership always feels just barely out of reach in the Flathead Valley, and something aimed towards people in our financial situation is exactly what we need.”
Kim Morisaki, the executive director of the Northwest Montana Community Land Trust, explained how the program would be used in practice and highlighted the Flathead’s need.
“This is actually a loan program where the loans will be paid back, and we’re using state money to leverage private investment,” Morisaki said. “It’s actually smart and forward-thinking and an out-of-the-box creative, private use of money.”
“If we don’t have a stable community with stable homeownership and a stable workforce, we all suffer,” she added.
No residents spoke in opposition of the program during public comment; however, Commissioner Brodehl said the office has received public comment opposing the funds.
Brodehl told the Beacon he has not made a final decision, but was turned off by HB 819 because the Republican-controlled Montana Legislature passed the bill “without the county commissioners asking for it.”
“My concern is we’re asking a group of taxpayers to fund part of the mortgage for another group of taxpayers,” Brodehl said. “That makes it tough to find justification to why we would do that.”
Commissioner Pam Holmquist did not immediately respond to the Beacon’s request for comment; however, she previously said she needed more information about the program and more public feedback.
Commissioner Abell told the Beacon he supports the funding because it’s already been allocated, and he hopes to help prospective homeowners in the Flathead Valley.
“It’s a path to homeownership for the forgotten middle,” Abell said.