Skip to main content

What is REDA?

NeighborWorks Montana’s Real Estate Development and Acquisition Program (REDA) provides loans for preservation and development of affordable housing in Montana. Flexible short-term financing is available for pre-development, land or building acquisition, and construction. Permanent financing is available for some projects that meet lower income targets and preserve affordability long-term. NWMT provides needed liquidity that pairs with other financing to make projects viable.

Types of NWMT financing:

Pre-Development Loans

Predevelopment loans are typically used to support costs prior to the receipt of the construction loan and ground breaking.  NWMT’s Predevelopment funds can be used to pay for third party reports, application fees, architecture and engineering costs, and more – much of which is required prior to a construction loan being granted to a project.

  • Up to $750k
  • Up to 24 months
  • Typically interest-only payments
  • Repaid at the time of construction loan financing

Gallatin Community Housing Impact Fund

The Gallatin Community Housing Impact Fund was created in partnership with local financial institutions, government, and private individuals to make a positive community impact in Gallatin County.  The purpose is to offer low-interest financing to encourage developers, investors, and local governments to partner with community housing providers to preserve and expand housing solutions in the expensive Gallatin Market.  The Impact Fund can be used for multiple types of loans and terms are dependent on type of project and loan requested.  Some general terms are below, please see guidelines for more information.

  • Up to $1.5 million
  • Permanent loan terms up to 10 years except for LIHTC projects (up to 17 years)
  • Amortizing payments expected for permanent loans
  • Can be permanent, land acquisition, or predevelopment loans


*The Gallatin Community Housing Impact Fund is actively seeking investments.  If you are interested in supporting this work, please reach out for more information.*

Capital Magnet Fund

Capital Magnet Funds are a source of permanent financing that can be used to support the ongoing affordability of multifamily LIHTC projects by providing low rate and flexible terms to best leverage other sources like tax credits and private debt.  Funds were awarded to NWMT to support these loans and as such there is a limited amount of fund available.  The program is intended to be gap financing for projects with rates and terms that are matched to a projects needs.  Capital Magnet Funds do have strict compliance requirements in relation to both the individual projects and also on a portfolio basis, so not all projects will be eligible.

  • Up to $1.5 million subject to all other CMF compliance requirements
  • Up to a 40-year fixed rate, but shorter terms encouraged
  • Amortizing payments expected, but terms based on project needs
  • Interest rates targeted at 3.50%

Other Financing

NeighborWorks Montana’s REDA program is dedicated to working with developers to help support housing activity and development across the state.  If there’s one thing we know about Montana, every community is different and has it’s own challenges.  In the same realm, every project may need something a bit different.  The REDA program has provided a variety of financing options to support housing development across the state, even if it doesn’t quite fit the above categories.  The REDA program has also provided alternate gap financing, multifamily cooperative development financing, lines of credit to support community land trusts, and others.  If your project might benefit from REDA financing please don’t hesitate to reach out to us!

For questions about our REDA loan products or to talk about a project you are interested in getting funded, contact Larry Phillips, Real Estate Development Director.

Larry Phillips
Real Estate Development Director
[email protected]