County Opts In To State Program For Down Payment Assistance
Author: Linda Kent, MT43 News Staff Reporter
County Opts in to State Program for Down Payment Assistance
Linda Kent
MT43 News Staff Reporter
Broadwater County Commissioners approved a resolution Oct. 30 opting-in to the Montana Community Reinvestment Plan (MCRP) and naming Housing Authority Billings (HAB) as the county’s Community Resource Organization to administer a down payment assistance to Broadwater County homebuyers.
MCRP is a state program created by the 2023 Legislature which will distribute $50 million to counties in the coming year to help them improve the ability of middle-income homebuyers to purchase a home.
Deputy County Attorney Kaylan Minor, who presented the resolution, said approximately $170,000 would be available to successful applicants for the program.
Mark Taylor, speaking on behalf of HAB, noted that the program requires that state money for the program be matched by other funding sources. HAB has already secured those funds from private investors, requiring no funding from Broadwater County.
Taylor explained that the program’s $50 million funding pool, authorized under HB 819, will be distributed to participating counties based on each county’s gross domestic product. The bill’s sponsor, Paul Green of Big Horn County, Taylor said, felt “It was important that the state’s small counties be left behind.”
Under MCRP, successful applicants would have a 30 percent down payment to purchase a home, with mortgage costs capped at 30 percent of household income. However, the purchaser would only receive up to 1 percent equity in the home for each year they reside there.
HAB is currently working with banks to develop a mortgage product that will meet HB 819’s requirements, Taylor said. He said he expects that the program will be ready to accept applications in the first three months of 2025, with a community engagement campaign planned when everything is in place.
In the meantime, HAB is reaching out to counties, local development organizations, and Chambers of Commerce for input on what is needed on the ground.
Taylor also said that the down payment assistance program is only the first phase of a longer-term program to improve home affordability, with future phases looking towards employers in the community.
“This is a really exciting way for new homeowners to get into a home,” Commissioner Debi Randolph said.
