The Flathead County Commissioners are leaning towards declining a $9 million affordable housing initiative, even though the county ranks among the most costly living areas in Montana. The Montana Community Reinvestment Plan, established by the 2023 legislature through House Bill 819, offers $56 million in state funds for homebuyer support to low- and middle-income residents. Over 40 counties, including most of the largest by population, have opted into the program or are planning to vote on it soon.
Butte-Silver Bow Commissioner Hattie Thatcher praised the program’s utilization of state surplus, emphasizing the importance of acceptance. However, Flathead County remains a standout, as commissioners have not yet scheduled discussions to approve the funding before the deadline. Community leaders argue that the county is neglecting potential support for its residents.
Commissioner Randy Brodehl expressed skepticism, labeling HB 819 a “socialized program” due to taxpayer funding and government oversight. Housing affordability in Montana has become a pressing issue due to population growth and stagnant housing inventory, exacerbated by the COVID-19 pandemic. Zillow’s Home Values Index shows Montana’s median home price soared from $271,726 in January 2020 to $452,050 recently.
House Bill 819, receiving bipartisan support, launched several housing programs, including the Montana Community Reinvestment Act, allocating $50 million based on county GDP. An extra $6 million targets counties housing state facilities with over 100 inmates. Counties must opt into the program, appointing a Community Reinvestment Organization (CRO) to administer funds and attract private investment, effectively doubling the total funds to $112 million.
Three organizations, including Homefront and NeighborWorks Montana, applied to be CROs. The homebuyer assistance program offers interest-free loans up to 30% of a home’s purchase price to residents earning 60% to 140% of the area median income. Monthly payments are capped at 30% of gross income, and homes remain deed-restricted with a minimal annual value increase, funneling extra appreciation into the CRO’s fund.
The program targets areas like Bozeman, Flathead Valley, and Missoula, where home prices greatly surpass median incomes. Leaders in Gallatin and Missoula counties quickly embraced the program, seeing it as a path to homeownership and generational wealth. However, rural counties like Fallon found the program unsuitable. Despite a $145,000 allocation, commissioners unanimously voted against participation, citing insufficient impact.
Community voices in Flathead County, like Kim Morisaki and Daniel Sidder, urge commissioners to reconsider, stressing that taxpayers fund the program yet won’t benefit if the county opts out. The county’s resistance, rooted in fiscal conservatism, clashes with the program’s intent. Commissioner Brad Abell supports the funding but faces opposition from colleagues. He acknowledges concerns over deed restrictions but sees the program as a valuable homeownership pathway.
Commissioner Pam Holmquist remains undecided, seeking further information before making a commitment. Counties must decide by Dec. 31 whether to join the program and select a partner CRO.
