For the first time, money from the Multi-Family Coal Trust Homes Program is being made available for the building of affordable rental homes throughout the state.

Executive Director of Montana Housing with the Montana Department of Commerce, Bruce Brensdal, said the program was recently passed by the Montana Legislature.

“This is a program that was passed in the last legislative session through House Bill 16, and it allowed the Board of Housing access to $15 million, which will be used to help developers that are building affordable homes in their communities with a loan with a first position at a lower rate than what they would have to pay on a conventional loan,” said Brensdal, who detailed some of the conditions on the loan. “First of all, they need to be multi-family homes, such as apartment buildings, or they could also be manufactured or mobile homes, as long as they are rentals.”

Brensdal said the interest rate will be tied to those with targeted incomes.

“If you’re serving very low-income people, the developer’s interest rate will be lower than if you were serving those with higher incomes,” he said. “It’s a tiered kind of a structure.”

It is estimated the loans will initially support the development of 240 new or rehabilitated affordable rental homes in Montana. As these loans payoff, the money returned will be used to fund future development of additional homes.

Income guidelines for communities throughout the state are available by clicking below.

Brensdal said the loans will be made available to developers throughout the state.