Flathead County's participation in state housing program uncertain

Flathead County is eligible for $4.5 million in funding through a state program aimed at addressing workforce housing.  

But whether those funds will be available for use in the county remains a decision in the hands of the county commissioners.  

The state Legislature in 2023 put aside $50 million to address workforce housing through housing nonprofits by establishing Community Reinvestment Organizations. House Bill 819 created an account to provide funds to such organizations that along with local matching funds would assist eligible households in purchasing deed-restricted housing.  

Commissioners must authorize the use of the organization that would then have access to and manage the funding or forfeit the opportunity to participate in the program. When including the match, it would mean $9 million for the housing program in the Flathead.  

While two commissioners said they are still considering information related to HB 819, as of Friday the item had not been placed on their agenda for consideration.   

The designated organization must submit its approval to the state by Jan. 15, 2025.  

A statewide organization that creates homeownership opportunities, NeighborWorks Montana has applied in several counties, including Flathead, to carry out the program. 

Hanna Tester with NeighborWorks Montana said the nonprofit has a long history of down payment assistance lending and as such has a sense of responsibility to ensure the program is “executed with responsibility, transparency and collaboration.” 

“We feel we are the right organization to run this program with those three values at the forefront,” Tester said in an email. “This is a unique opportunity where a large sum of taxpayer funding has been allocated to housing and we want to make this opportunity work in the best ways possible for the people it’s intended to support: Montana wage earners.” 

Commissioner Randy Brodehl said he remains hung up on whether it’s the right thing to do for taxpaying citizens saying that HB 819 “proposes a socialized program because it is taxpayer funded and government regulated.”  

He’s critical of the Legislature and governor for creating a program that requires county approval, claiming the funds could have issued through the state.  

“They didn’t do that, instead, shifting the responsibility to county commissioners who did not collect the general fund or coal tax monies, nor did the governor solicit input from the Flathead County Commissioners before introducing the bill,” he said in an email. 

Commissioner Pam Holmquist said she is still gathering information on HB 819.  

Commissioner Brad Abell did not respond to a request for comment as of press time.  

The program would provide homebuyers with 30% of the cost of the home as a loan or an investment, in exchange for assistance homebuyers agree to an equity cap of 1% per year. The homeownership program would look to work with households who are 60% to 140% of Area Median Income.  

Flathead County’s area median income in 2024 was $88,400, according to government-sponsored Fannie Mae, which would equate to 100% of AMI.  

Brodehl says that private investment is the best option for stimulating the economy and that HB 819 shifts the risk from new, lower income buyers onto the backs of a larger group of taxpayers.  

“My personal experience is that private funding has less of an impact on the cost of housing than does taxpayer funded programs that are low risk, and tend to drive the costs higher to fill the risk gap.”   

The Kalispell Chamber of Commerce is showing support for the program. In a letter to commissioners, Lorraine Clarno, chamber CEO/President, and Ryan Bowman, chair of the chamber board point out that affordable housing continues to be a top priority for the community and HB 819 provides a critical solution to this challenge.  

“It would be a missed opportunity, and frankly unacceptable, to allow these funds to be distributed to the 15 other eligible counties when they are needed right here in the Flathead,” the letter says. “We encourage you to take action and ensure our county receives its share.”  

The Northwest Montana Association of Realtors is also petitioning the commissioners to approve the program. In a letter to commissioners, Erica Wirtala with the association says it would help buyers bridge the gap between the market price of a home and what they can afford.  

“As anyone that lives in this county can tell you, our housing prices border on obscene,” Wirtala said. “The National Association of Realtors just noted that Montana has the most expensive housing in the United States, and the bulk of that expense lies in our area. The HB 819 program was crafted by the 2023 legislators and signed into law by the governor to address the growing disparity between wages and the cost of housing.”  

Deputy Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.