| Location and Context
Montana's great physical beauty frequently hides the poverty that abounds among its hardy, independent citizens who ranch, farm or work the mines. Montana is the second poorest state in terms of wages per job. One in four Montanans - more than in any other state- holds down two or more jobs to make ends meet. Per capita personal income is $22,569. Home ownership is highly valued. From its beginnings, people moved to Montana to own land. Currently 69.1% are homeowners. Among lower income and Native American families however the % drops dramatically. Part of this comes from the challenge of distance: potential owners far from counselors and lenders. With low home prices in rural areas (under $80,000 in most towns) and sparse population, lenders who "do it all" (agricultural, commercial, and real estate loans) do not aggressively seek new borrowers. When families in small towns can't buy homes, they are more likely to leave. Disinvestment haunts the housing stock. As population shrinks so does the economy.
Collaborative Structure and Strategy
Extending homeownership opportunities beyond the state's urban areas in order to reach small and remote rural communities that otherwise lack affordable housing for families who live and work there; the importance home ownership plays in the ability of lower income families to build assets and start on the road to economic independence. As this happens, they also put down roots and become stakeholders to strengthen rural communities.
The Model is simple and cost effective:
- Marketing, outreach and homebuyer education and counseling are performed by the USDA's Seven Resource Conservation and Development (RC&D) Area Coordinators, the staff of Rural Housing Services (RHS), the Missoula Housing Corporation and its partners, the City of Billings and NHS
- Management of the effort, loan processing, capital raising, administrative support and access to Neighborhood Reinvestment's national Training Institute is provided by NHS
- Reduced rate mortgages are provided by the Montana Board of Housing, Rural Development and private lenders
- Mortgage applications, as well as loan closings, are processed by local financial institutions
- Client families are frequently referred by local realtors.
Results are measured by the number of new homebuyers produced. Currently about 400 a year, which makes this collaborative a top producer in NR's national HomeOwnership Campaign.
Montana Home Ownership Network Business Plan
Leverage and Impact
If there was a viable business in providing first mortgages to lower income families who all too often "just about" qualify in far flung places, our lender friends would be there. For years they were stymied. The Montana Board of Housing saw its funds gobbled up in our cities. The RC&D people met with each other, gnashing their teeth over the loss of economic development because housing was running down, which discouraged other forms of investment. No single organization could justify the costs of reaching these prospective homeowners. We found each other and have rewritten Montana's homeownership history. MHN's success has drawn in partners who are committing both expertise and dollars to this collaborative. According to the Business Plan developed for MHN, at least 16,000 families could qualify for first mortgages with only counseling and gap financing standing between them and their first rung on the asset building ladder. The goal is to assist 2250 buyers in the next 5 years. This will require $146 million in first mortgages and $6.4 million in second mortgages for downpayment and closing cost loans.
Main Contact
Sheila Rice
Montana Home Ownership Network
Ph: 406-761-5861
srice@nhsgf.org |
Montana HomeOwnership Network (MT) 