HOME Program Homebuyer Assistance

The HOME Program Homebuyer Assistance opportunity is administered by the Montana Department of Commerce using funds allocated through the U.S. Department of Housing and Urban Development HOME Investment Partnerships Program. This federal program, authorized under the Cranston Gonzalez National Affordable Housing Act, is designed to expand access to safe, decent, and affordable housing for low and moderate income households. In Montana, the Department of Commerce distributes these funds to qualified subgrantees, including nonprofit organizations and local governments, which then implement homebuyer assistance programs. The overarching goal is to support sustainable homeownership by reducing financial barriers such as down payments and closing costs. The primary purpose of this funding is to assist income eligible households in purchasing modest homes by providing financial support for upfront housing costs. Funds may be used specifically for down payment and closing cost assistance, and must be paired with responsible mortgage financing that meets federal underwriting standards. The program enforces strict affordability and compliance requirements to ensure long term housing stability. Households receiving assistance must have incomes below 80 percent of the Area Median Income, and properties must meet HUD established purchase price limits. Additionally, homes must pass inspection standards and cannot be substandard or in need of significant repair. Eligible applicants for this funding are nonprofit organizations, including Community Housing Development Organizations, and local units of government within Montana. Individuals are not eligible to apply directly for funding. Instead, approved entities receive subgrants and administer assistance to qualified homebuyers. Applicants must demonstrate organizational capacity to manage federal funds, comply with regulatory requirements, and maintain ongoing oversight of assisted properties during the affordability period. This includes responsibilities such as environmental reviews, financial management, compliance reporting, and enforcement of recapture or resale provisions if a home is sold before the affordability period ends. The application process requires submission through an online portal hosted by the Montana Department of Commerce. Applicants must prepare a comprehensive application package that includes a management plan outlining how the program will be administered, as well as a program income or recaptured funds plan. Additional documentation may include organizational capacity materials and supporting policies demonstrating compliance with federal and state requirements. Applicants are advised to consult program staff prior to initiating any project activities to avoid actions that could conflict with regulatory requirements. Evaluation of applications is conducted by Commerce staff, who review submissions and make recommendations to the Commerce Director for final approval. Selection criteria emphasize organizational capacity, compliance readiness, and the ability to effectively deliver homebuyer assistance programs. Successful applicants enter into contracts, typically spanning two years, during which funds must be expended in accordance with program rules. Any unused funds may be reallocated by the state. The program also requires ongoing reporting, including quarterly updates and annual certifications to ensure compliance with occupancy and affordability requirements. The program operates on a recurring basis as part of Montana’s annual allocation of HOME funds, though specific deadlines and funding cycles may vary depending on state action plans. Applications are currently accepted through the designated online system, and applicants must adhere to all procedural and regulatory guidelines outlined by the Department of Commerce. Program staff are available for support via email and phone, and official guidance documents are accessible online. Overall, this funding opportunity plays a critical role in supporting affordable homeownership across Montana by enabling local organizations to deliver targeted financial assistance to eligible households.

Ensure full compliance with HOME regulations, consult program staff before project initiation, and provide detailed management and financial plans demonstrating capacity