The NeighborWorks Montana REDA (Real Estate Development & Acquisition) program offers several types of loans to developers of affordable housing across Montana. These loans can provide predevelopment funds, money to acquire land or a building, and funds that can bridge gaps as needed. The types of projects NWMT invests in include adaptive reuse, infill, Community Land Trusts, shared equity ownership, multi-family construction, and preservation.
Project Impact Locations
Over the last 14 years, NWMT has worked to become a reliable source of funding for developers of affordable housing in Montana. While it can be easy to focus on the money, our REDA program is all about creating opportunities for home in the state that we love. The REDA program helps strengthen our communities and ensure that Montanans can access safe, affordable homes. A total of 3,617 homes have been created or preserved across the state as of June 30, 2023.
More About the Types of Projects NWMT Funds
The projects NWMT invests in include adaptive reuse, infill, CLT, shared equity ownership, multi-family construction, and preservation. Here is an explanation of each type of project:
Adaptive reuse is the redevelopment of an existing building for a new purpose. This type of project can turn what was once a waste of space or an eyesore into vital housing opportunities for our communities.
Infill development takes place when a developer builds on unused or underutilized land within their community. NWMT finances both single-family and multi-family infill projects.
Community Land Trust & Shared Equity Ownership
Community land trusts and shared equity ownership use public and private investment to acquire land on behalf of a specific community. The land is owned in a shared model by that community while the individual owns the house on top of the land.
Multi-Family New Construction
NWMT provides pre-development, acquisition, and infrastructure financing to new multi-family developments. This allows a community to create a large impact with one project that will support affordability for renters for many years.
Preservation & Rehabilitation
NWMT provides predevelopment funding, acquisition, and permanent financing to preserve current homes that are in a community. Preserving existing homes as opposed to building new homes can be between a third to a half less costly and the loss of the affordability of these homes might mean the loss of all subsidized housing in a community.
Adaptive Reuse Project Highlight
Great Falls, Montana
The Baatz building was constructed in 1913 and was originally a 40-room hotel in downtown Great Falls. The building will be renovated to provide 24 homes for households experiencing homelessness or chronically homeless persons. This project will use rental assistance and other subsidies to allow tenants to only pay 30% of their income (if any) for rent and provide various services tailored to the homeless community including medical, dental, and behavioral care.
The Baatz project will be the first permanent supportive housing option for people experiencing homelessness in Great Falls as all other beds in the community are used only for emergency shelter. According to the 2020 Point in Time Homeless Survey the number of people experiencing homelessness in Great Falls increased over 36% from 2019 to 2020, showing the dire need for housing in the community. NeighborWorks Great Falls is partnering with Homeword from Missoula to revitalize this building and adapt it into housing for Great Falls residents.
NeighborWorks Montana provided a loan to the developers to assist with the acquisition of the building and some of the predevelopment costs.
- Number of homes: 24
- NWMT investment: $375,000
- Total cost of project: TDC estimated $8,726,447
Infill Project Highlight
Habitat for Humanity Homes
NeighborWorks Montana provided acquisition and infrastructure financing to Habitat for Humanity of Gallatin Valley to purchase vacant land in the town of Ennis.
Madison County and the town of Ennis are always seeking employees to support the services offered in the area. Madison County is full of seasonal and recreational potential which brings a major influx of tourists every year. This creates an issue for those living in the area year-round when many houses are marketed for vacation rentals.
The project, when complete, will provide ten homes for the workforce in Ennis and surrounding areas of Madison County to provide employees in the area with a safe place to call home.
- Number of homes: 10
- NWMT investment: $225,000 in acquisition/infrastructure
- Total cost of project: $1,650,000
Shared Equity Project Highlight
Wolf Avenue Apartments
Wolf Avenue, an 8-unit property in Missoula’s Northside neighborhood became resident owned on May 10th. This project was two years in the making and charts the course for a new ownership model in Montana – conversion of existing apartments into cooperative resident ownership.
This project was a true team effort with many NWMT staff members having a role. North Missoula Community Development Corporation was the co-lead for the project and worked with NWMT and residents every step of the way. They now hold the land in trust and will provide ongoing support to the residents and the cooperative.
The project also would not have been possible without support from the City of Missoula who provided funding from the Housing Trust Fund, and the tireless work of attorneys at Dorsey Whitney who navigated the legal structure of this ownership model.
- Number of homes: 8
- NWMT investment: $585,000 (2 loans)
- Total cost of project: $991,491
Multi-Family New Construction Project Highlight
Arrowleaf & Perennial Park Apartments
This unique project in Bozeman created the opportunity for affordable senior housing, affordable multi-family housing, a community health partnership, and a building for a local nonprofit early childhood learning center.
Arrowleaf Apartments provide 136 homes for families (pictured top left) while the Perennial Apartments provide 96 homes for seniors 55+ (pictured bottom left). The apartment complexes share the site with Family Promise of Gallatin Valley and Community Health Partners of Bozeman. Both complexes offer a nice variety of amenities.
Family Promise of Gallatin Valley is a nonprofit organization that provides services to families, including daycare and case management. This facility also includes an early childhood learning center that can serve 96 children.
Community Health Partners provides affordable medical, dental, and behavioral health care. This new facility provides state-of-the-art treatment for patients.
The whole project was co-developed by HRDC of Bozeman and GMD Development out of Seattle, Washington, utilizing 15 acres to build on while also preserving wetlands, a small pond, a stream, and a biking/walking trail.
- Number of homes: 234 homes combined
- NWMT investment: $212,419
- Total cost of project: approx. $51 million
Preservation & Rehabilitation Project Highlight
This project consists of the acquisition and rehabilitation of 32 homes with a total development cost of over $5.5 million. Echo Enterprises looks forward to rehabilitating the homes that were constructed in the late 80s and early 90s, upgrading amenities, and making the community much more energy efficient.
Many of the Highland Manor apartments include rental assistance, allowing residents to pay only 30% of their income while the assistance covers the rest of their rent. This project will put new life into homes that are affordable for the working and retired senior residents in Havre.
- Number of homes: 32
- NWMT investment: $410,000 predevelopment and $300,000 permanent
- Total cost of project: TDC estimated $7,106,156