Building Homes Builds Communities

Several trends have converged that make affordable housing even more necessary in rural America. The population in many rural areas has increased over the past decade, which has increased demand for and the price of housing. Coupled with the fact that approximately 45 percent of rural families are low-income (having incomes at or below 80 percent of area median), this means that affordable housing is hard to find in many rural areas.

A variety of federal programs address this housing crisis, including the US Department of Agriculture’s (USDA’s) Rural Housing program and the US Department of Housing and Urban Development’s (HUD’s) HOME program. Regional development organizations administer these and other federal and state programs that make low-interest loans, provide homebuyer education and upgrade dilapidated structures. According to the NADO Research Foundation’s 2000 survey of regional development organizations, 69 percent administer one or more HUD programs.

Homebuyer Education Partnership

Over the last four years, a unique collaboration has developed in Montana to provide homeownership services to lower-income families statewide. In addition to realtors, local lenders and federal and state mortgage programs, the partnership includes a homeownership training component administered by Great Falls Neighborhood Housing Services, Missoula Housing Corp. and seven resource conservation and development (RC&D) councils, two of which (Headwaters and Beartooth) are also Economic Development Administration (EDA) funded districts. The stakeholders are developing a new corporation, the Montana HomeOwnership Network, to govern the statewide effort and raise the necessary funds.

As part of this effort, Headwaters RC&D Area, Inc. in Butte administers the training program in its eight-county service area. According to Headwaters’ Executive Director Judie Tilman, regional home prices are becoming increasingly unaffordable for lower-income, first-time homebuyers. Tilman explains, “This comprehensive partnership program has made the dream of homeownership a reality for 69 families in the Headwaters region alone.” Statewide, 419 families were assisted in 2000.

Rehabilitation

Regional development organizations are also involved in rehabilitation of dilapidated housing and new construction. Green Hills Regional Planning Commission, Inc., an EDA-funded district in Trenton, Missouri, manages various housing programs, including a HUD-financed rehabilitation program and a USDA Rural Housing-financed project to build a small subdivision of affordable housing.

According to Green Hills’ Executive Director Michael Johns, the commission is currently rehabilitating the Plaza Hotel in Trenton. Vacant since the mid-1980s, this historic hotel will be renovated into 23 elderly housing units. The $2.7 million project, financed by the Missouri Housing Development Commission and state historic preservation tax credits, is being implemented by a limited liability company, which includes Green Hills, the National Development Council, and First Bank Community Development Corporation. According to Johns, “The project is located across the street from the historic Grundy County Courthouse and will honor the original architectural integrity of the hotel building.” Windows based on the original design are being handcrafted for the project and will contribute to recreating the structure’s character. A dilapidated theatre adjacent to the building has been replaced with a gazebo and park.

By William Amt, NADO Research Foundation Project Manager

For more information, contact Judie Tilman of Headwaters RC&D Area, Inc. at (406) 782-7333 or by email at jtilman@headwatersrcd.org; Michael Johns of Green Hills Regional Planning Commission, Inc. at (660) 359-5636 or by email at mjohns@lyn.net.

February Index | Back Page | Next Page