Serving Proudly As The Voice Of Valley County Since 1913
Serving Proudly As The Voice Of Valley County Since 1913
The Valley County Commissioners met in regular session on Dec. 31, to discuss whether or not to opt into the Montana Community Reinvestment Plan through House Bill 819. This plan allocates $56 million statewide to provide homebuyer assistance to low-and middle-income residents with Valley County being eligible to receive $310,000.
After researching the program and discussing the program with NeighborWorks Montana, the Valley County Commissioners voted 2-1 to approve Resolution No. 21-2024, a resolution to affirmatively participate in the Montana Community Reinvestment Plan (MCRP) by identifying and approving a Community Reinvestment Organization (CRO). NeighborWorks Montana qualifies as a CRO pursuant to the statutory requirements of HB 819 and the County Commissioners selected this organization for purposes of participation in the MCRP.
“The word got to us kind of late that we needed to opt in or out by the 31st,” stated Commissioner John Fahlgren. “We had like a week or so to decide this and it’s pretty dang complicated. We had reservations about doing it because it seemed like a poor idea for the buyer because if they could somehow come down with a down payment and not have to use the program, then whatever appreciation their house gets when they sell it, it’s theirs. Here [with this program] the appreciation goes back to NeighborWorks and they [the homeowner] only gets one percent per year.” He also stated they had discussions with NeighborWorks Montana regarding whether or not the County would have to expedite zoning and ordinances as a result of opting in. The Commissioners were assured and guaranteed that the County has no liability to this program, all they have to do is opt-in to receive the funds.
The resolution states, in part, that the Valley County Board Of Commissioners believes after examining the program materials and considering the needs and potential benefits to its residents, participation in the MRCP program is important to the continued health, welfare and economic prosperity of the County’s constituents and businesses. It also states the Valley County Board of Commissioners bears no responsibility in providing required program match, that all match requirements will be satisfied by NeighborWorks Montana as the CRO.
However, there are reservations from the Commissioners regarding the County’s involvement in the program.
“I don’t understand why the County has to opt in or out. I don’t understand why the County is involved. That’s what worries me,” expressed Commissioner Mary Armstrong. “You know the devil’s always in the details...it just doesn’t sound like good legislation to me.” She also expressed how complicated it is for a first-time home buyer to understand the financing, with the concern being if people will truly understand the limitations on this program if the buyer opts in.
Though Commissioner Paul Tweten and Commissioner Fahlgren voted to approve to move forward and opt into the plan, they had some of the same reservations as Commissioner Mary Armstrong who voted to not opt in. “I’m willing to vote yes, but I sure would not recommend the program to anyone,” expressed Commissioner Tweten.
House Bill 819 requires counties to affirmatively opt in to the program and designate a CRO – a federally recognized charitable organization or certified economic or housing development organization – as a partner to oversee the program and its funding. Partner CROs are also responsible for matching the state funds with private investment, doubling the funds to $112 million.
Under the homebuyer assistance program, residents who make from 60 to 140 percent of the area median income qualify for interest-free loans, up to 30 percent of the total purchase price for a home. The program also caps monthly payments for the home at 30 percent of gross income, providing a limit to what the homebuyer can purchase.
Homes purchased under the program become deed-restricted and homeowners can only realize a one percent per year increase in value if they choose to sell their home. The difference between the one percent cap and the home’s total appreciation goes into the CRO’s revolving fund to perpetuate the program.
The Dec. 31 meeting was Valley County Commissioner Mary Armstrong’s last meeting as she decided not to renew her term after serving the County for six years. Commissioner Jeff Alsberg started his position as the newest County Commissioner on Jan. 2.
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