NeighborWorks Montana secures $1.75 million grant

A sizeable grant will help NeighborWorks Montana to further its reach across the state, the housing nonprofit organization announced earlier this week.

NeighborWorks has received $1.75 million from the U.S. Department of Treasury’s Community Development Financial Institutions Fund, which will help the nonprofit to expand its lending program and bolster its programs around the state of Montana, according to a press release.

“CDFI has committed a significant amount of money to Montana this year,” said Sheila Rice, executive director of NeighborWorks Montana, through the release. “We are proud to have received the largest CDFI grant in the state and will put the funds to good use helping Montanans become homeowners.”

The money from the CDFI is most expected to help potential homebuyers around the state as it will help support lending programs NeighborWorks operates statewide. It also, the release said, will allow NeighborWorks to purchase real estate for low-income developments and help expand its Resident Owned Community programs.

One of NeighborWorks’ lending programs, the 20+ Community Second initiative, fills a “lending hole” statewide by providing 20 percent of the financing as a second mortgage for homes in Great Falls, Missoula, Helena, Bozeman and Billings. The release stated that NeighborWorks has helped more than 100 borrowers secure loans in the two years since the 20+ program was introduced.

“The 20+ loans have been extremely helpful to borrowers,” said Maureen Rude, director of operations for NeighborWorks Montana, in the release. “These new homeowners don’t have to have expensive mortgage insurance. They can buy in town and have an affordable monthly payment.”

NeighborWorks said it hasn’t a single late payment in the 20+ program since its launch in 2013.

“The $1.75 million from the CDFI Fund will go a long way toward helping us continue to fill the needs of Montana’s future homebuyers,” Rude added.

NeighborWorks Montana has received more than $4.5 million in CDFI funds since 2009. The nonprofit became CDFI certified in 2007.