The Flathead County Commissioners may reject a $9 million investment for affordable housing, despite the area’s high living costs. The 2023 Montana Community Reinvestment Plan, established under House Bill 819, offers $56 million statewide for homebuyer assistance targeting low- and middle-income residents. While over 40 counties, including most of Montana’s populous ones, have embraced the program, Flathead County remains hesitant.
Butte-Silver Bow commissioner Hattie Thatcher supports the initiative, stressing its benefits as a use of state surplus funds. Yet, Flathead County’s commissioners have not set a date to discuss or approve this funding before the state’s deadline, drawing criticism from business leaders. Kim Morisaki, of the Northwest Montana Community Land Trust, expressed hopes for a fair dialogue about the potential loss of this investment.
Commissioner Randy Brodehl opposes the program, calling it a “socialized program” due to its taxpayer funding and government regulation, advocating for minimal government involvement. Housing affordability issues have escalated in Montana with population growth and limited housing supply, compounded by the COVID-19 pandemic. Zillow reports median home prices in Montana have surged from $271,726 in January 2020 to $452,050 last month.
House Bill 819, backed by bipartisan support, aims to address housing challenges through initiatives like the Montana Community Reinvestment Act. This deed-restricted housing program, funded with $50 million, allocates resources based on county GDP. Another $6 million is reserved for counties hosting state facilities with over 100 inmates, as a workforce housing incentive. Counties must opt into the program and partner with a Community Reinvestment Organization (CRO) to manage funds and match state investments, potentially doubling the available resources to $112 million.
The homebuyer assistance program offers interest-free loans for residents earning 60% to 140% of the area median income, capped at 30% of gross income for monthly payments. Homes purchased under this scheme become deed-restricted, with a maximum 1% annual value increase on resale, the difference supporting the CRO’s revolving fund. This stability measure helps bridge the gap between renting and owning, according to Hanna Tester from NeighborWorks Montana.
Flathead County Commissioner Brad Abell supports the funding but faces challenges persuading his peers. He acknowledges concerns about government roles but considers rejecting the funds pointless as the decision was previously made. Abell stresses the importance of pathways to homeownership amid rising unaffordability causing residents to consider relocating. Commissioner Pam Holmquist remains undecided, seeking clarity on the bill’s vague procedures. Counties must decide by Dec. 31 to opt into the housing program and select a CRO partner.
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