Creating Paths to Homeownership: NeighborWorks Montana’s Innovative Approach 

Avery Kaplan, Membership Associate, Opportunity Finance Network

OFN member is preserving affordable housing and empowering communities.

Estimated reading time: 5 minutes

This month, we’re featuring OFN member NeighborWorks Montana, a CDFI that’s been transforming lives for over 25 years. They provide Montanans with housing education, counseling, and innovative lending options. Their work empowers residents, especially those in manufactured home parks, to gain financial independence and secure affordable housing. 

Recently OFN spoke with Kaia Peterson, Executive Director of NeighborWorks Montana, to learn more about their impactful work and their plans for the future.  

This year, thanks to OFN’s First Timer Scholarship, NeighborWorks Montana will bring four staff members to OFN’s 40th Annual Conference, taking place October 21-24 in Los Angeles.

Kaia Peterson, Executive Director of NeighborWorks Montana

How do you describe your organization to the community?  

 

NeighborWorks Montana started in 1998 with a focus on homeownership for low-income residents. Twenty-five years later, we still believe in the transformative power of homeownership, but now we work across the housing spectrum. We provide down payment assistance for first-time homebuyers and financing for affordable housing developers. Our loan fund helps preserve and build affordable apartments and single-family homes, and we offer education, counseling, and technical assistance to ensure long-term success. Partnering with nonprofits, local governments, and private real estate, we serve communities from Whitefish to Billings and beyond. 

What’s the biggest challenge or opportunity for your organization in 2024?

 

Montana is now the least affordable state in the country, according to a recent report from the National Association of Realtors. Homeownership is slipping out of reach for many residents, and the rental market is also struggling. 

In response, we’re creating alternative homeownership models. We’ve been supporting Resident Owned Communities (ROCs) for over 15 years, helping residents of manufactured home parks buy their properties. We’ve even applied this model to apartment buildings, forming cooperatives that empower residents to own their homes. This approach preserves affordable housing and creates new paths to homeownership. 

What recent project had the biggest impact on your community?

 

Recently, local banks and credit unions in Gallatin County came together to create a loan fund targeting community needs. They invested $3 million, with the City of Bozeman, contributing $1 million and NeighborWorks Montana adding another $1 million. The Gallatin Housing Impact Fund has already financed three projects, including two developments with 370 new apartments and a facility for a local homeless services provider. It’s a great example of how collaboration can create lasting impact. 

What challenge is the CDFI industry facing, and how can we overcome it?

 

Access to capital is key, but the real impact happens when we pair financing with education and counseling. These services are critical, but they’re also time-consuming and expensive. We’re expanding our development services through partnerships like the Montana Native Homeownership Coalition and the Reimagining Rural program. Native and rural communities benefit from this support, and we’re proud to be part of that effort. 

What are you hoping to get out of this year’s OFN Conference?

 

We’re thrilled to have four staff members attending this year, including three from our leadership team. The OFN Conference gives us a chance to learn from other CDFIs and bring new ideas back to Montana. This year, we’re especially excited to learn more about shared-equity housing models and programs funded by the Greenhouse Gas Reduction Fund. 

Is your organization attending the OFN Conference? Be sure to connect with Kaia and her team and other advocates working to create opportunities for all! 

Have questions about OFN’s funding opportunities for members? Learn more about our current initiatives. 

Stay in the loop with NeighborWorks Montana on their Facebook, Instagram, and LinkedIn.

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Tags: Affordable Housing, Member Highlight, OFN Membership