MISSOULA — In less than a year after the program was announced, Missoula's Housing Impact Fund has already neared its original campaign goal of $10 million — funding intended to preserve or expand housing solutions across the city.
NeighborWorks Montana and the Missoula Economic Partnership established the fund last November, starting with a $9 million gift offered by a local donor and several financial institutions, including First Security and Stockman banks, and Clearwater Credit Union.
The fund looks to provide stable returns for long-term investment to fund housing projects in Missoula. It's designed to be a flexible financing source that's responsive to the community’s existing housing needs while tackling new opportunities.
“Housing affordability directly impacts Missoula’s ability to maintain a resilient economy,” Grant Kier, president and CEO of the Missoula Economic Partnership, said Tuesday. “Through collaborative, creative financing, the Missoula Housing Impact Fund is opening the door to housing for hard-working Missoulians and their families.”
Program backers on Tuesday said the fund has already started moving the needle on the housing front. It has assisted the construction of 89 new affordable home-ownership units headed by Ravara off Scott Street and helped the Missoula YWCA secure 2 acres for a future mixed-use housing development.
Under the program, roughly 60% of the funding is earmarked for households making less than 80% of the area median income. In Missoula County, that equates to around $100,000 for a household of four, according to housing officials.
“The unique housing challenges in Missoula require a more robust response,” said Kaia Peterson, executive director of NeighborWorks. "We are thrilled to now have this fund as a way for local donors and investors to play a bigger role in meeting Missoula’s housing needs.”
With land and material costs high, the Housing Impact Fund provides low-interest loans to help acquire land, build housing or renovate the city's existing housing stock.
In 2018, the median price of housing in Missoula sat at $290,000, according to the Missoula Organization of Realtors. It currently rests at more than $569,000. Such prices are out of reach for many potential home buyers in Missoula, and that has dire impacts on local businesses as well.
As the Housing Impact Fund matures, it will be overseen by an advisory committee. That includes fund investors and a representative from city and county government.
“One of the greatest responsibilities we have as an organization is to give back to, and be involved in all aspects of our community, which includes helping to ensure that everyone has access to affordable housing,” First Security Bank president Scott Burns said in a statement.
