Community Development

We believe in the power of community

The Human Resource Development Council, District IX (HRDC) was established in 1975 and serves Gallatin, Park, and Meagher Counties in southwest Montana. We are a non-profit Community Action Agency (CAA) and Community Housing Development Organization (CHDO), dedicated to strengthening community and advancing the quality of people’s lives. We focus on seven strategic challenges, operating nearly 40 programs to address these pressing human needs in Food and Nutrition; Housing and Homelessness; Child and Youth Development; Senior Empowerment; Community Transportation; Home Heating, Energy, and Safety; and Community and Economic Development. As members of the communities we work in, our staff is involved daily in the immense behind-the-scenes efforts of community building, from volunteering on advisory boards to meeting with concerned citizens.  Together, we work with community leaders to create changes to positively impact our customers’ lives.

Examples of our Community Collaborations:

Big Sky Villas Apartments
2016-2017

Before:

After:

Big Sky Villas is a 24 unit Rural Development 515 family property with 21 units of Rental Assistance. The property was developed in 1985, and while well maintained, was in need of substantial rehabilitation. Additionally, the booming area real estate market made preservation of the property and its Rural Development Rental Assistance imperative. HRDC agreed to purchase the property in 2015, and was awarded Housing Tax Credits in January 2016. The RD transfer and loan assumption was completed in December 2017 with construction commencing in January 2017. The project required relocation of tenants, in pods of 4 units at a time. The final units were completed in August 2017 and exterior improvements will be complete in September 2017. Units were completely gutted and received new flooring, fixtures, bathtubs, toilets, sinks, lighting, air condition/heating units. An additional ADA unit was created. Exterior improvements included a new parking lot, roof, radon mitigation system, landscaping, siding, ADA compliance additions, and a new playground.

Total Project Costs: $3.7 million ($400,000 RD 515 loan assumption and reserves, $832,000 HOME grant, $2,492,151 LIHTC)

Units: 24 (6 one-bedroom, 12 two-bedroom, 6 three-bedroom) with 23 units of Rental Assistance (increased from 21 units of RA at acquisition)

Income Targets: Households earning less than 60% Area Median Income. 23 units have a Rural Development Rental Assistance Subsidy, ensuring that households only pay 30% of their income toward rent.

Partners: Montana Board of Housing Low Income Housing Tax Credit program, HOME Investment Partnerships (HOME) program, Big Sky Western Bank, Glacier Bank, Rural Development

West Edge Condominiums
2009-2014

History: HRDC acquired West Edge Condominiums in 2009 using Neighborhood Stabilization Program funds received as part of the Housing Recovery and Reinvestment Act (HERA). The project, which was originally slated for 96 condos, failed during the recession; at the time of acquisition, only 24 units had been developed, and only one had been sold on the market. HRDC acquired the 23 condos and land for additional units. HRDC elected to redo the site plan to reduce the total units on the site to 84 to allow for more green space. Phase 2 of West Edge (36 units) was developed in 2010; proceeds from sales of Phases 1 and 2 were used to develop the third and final phase (24 units). Local lenders played a large role in the project’s success; the project had not gone through the FHA condo approval process, and the post-recession financing environment required local lenders to provide 30-year, fixed-rate portfolio loans for 80% LTV, with HRDC holding silent second mortgages for the balance.

Total Project Costs: $11.4 million (NSP and proceeds from sales)

Project Type: Acquisition of 23 existing units and new construction of 2 subsequent phases comprising 60 units, totaling 83 units for affordable homeownership

Income Targets: All units were sold to households earning less than 120% Area Median Income (AMI); ¼ of units were sold to households earning less than 50% AMI. Average income of purchasing households was $25,000/year, with housing costs (PITI, HOA dues) averaging $620/month.

Partners: Community Development Block Grant Neighborhood Stabilization Program, local banks and credit unions.

Housing First Village

Housing First Village aims to provide transformative housing to Bozeman’s chronically homeless. Both the number of people experiencing homelessness and the duration of homelessness has been increasing in our community. The Warming Center, which provides seasonal temporary shelter, is reaching capacity. In addition, several consistent years of a virtually zero percent vacancy rate in rental housing makes it more challenging for our chronically homeless Warming Center guests to use existing rapid re-housing resources to support the transition into permanent housing.

Targeted towards the homeless population that is most at risk, this safe and sustainable model is designed to support successful reintegration into community living and permanent housing. The single-user “tiny” homes or shelters would provide a cost effective way to address the growing issue of homelessness, while maintaining the autonomy and dignity of the resident. This model is based on the “Housing First” philosophy, which limits the barriers to entry and provides supportive services to residents including mental health and addiction support. Central to the success of this model is a resource hub, which we hope will include an onsite medical mini-clinic, a mental health counselor, and a services coordinator. In addition, there would be dedicated spaces for community providers, such as addiction services, job and employment support, budget and financial coaching, etc.

This idea was brought to HRDC by project coordinator, Connie Campbell-Pearson, a deacon at St. James Episcopal Church. A partnership with MSU School of Architecture has supported senior and graduate level architecture students to research best practices in the tiny shelter model, and develop and fully construct demonstration projects. By bringing different sectors of our community together, we can work to support our homeless neighbors in finding a place to call home.

West Babcock Land Trust (1995) and Apartments:

History: In the early 90’s, the City of Bozeman asked HRDC to help with their growing affordable housing challenges, particularly for those households seeking to enter homeownership. In 1995, HRDC developed their first neighborhood, West Babcock, which consisted of 20 single-family homes, 24 apartments and a Head Start Center. The homes were sold to low and moderate income households earning less than 80% AMI using a Community Land Trust model to keep them affordable in perpetuity. The apartments are designed for households earning less than 60% AMI, and are a mix of 2 and 3-bedroom units. The adjacent Head Start Center completes this family-orientated development.

Funding partners: HOME, CDBG, Local Initiative Support Corporation, Federal Home Loan Bank

West Beall Tiny Homes:

History: During the development of the West Babcock land trust, HRDC was left with a remaining lot; resting on the corner, it had unwieldy setbacks that made its development less than desirable at the time. Now, 20 years after the development of the land trust, rapidly escalating home prices have led HRDC to seek out new solutions to providing affordable housing. One such solution is tiny homes. Working with an architect and builder, HRDC devised a plan to divide the remaining lot into two small lots. The project is intended to test the tiny home concept for market demand/acceptance, create comparable sales for builders interested in similar homes, and demonstrate how awkward lots can be maximized for affordable housing. The homes will be partially constructed offsite, with concurrent infrastructure development and project completion by January 2018. Upon completion, the homes will be sold to qualified buyers and held in HRDC’s Community land trust to ensure permanent affordability.

Funding partners: To demonstrate the market viability of the project, HRDC is developing the homes using a traditional construction loan and will use the proceeds of sale to pay off the loan.

Menucucci Square –

Rental housing and Head Start Center

History: HRDC purchased 75 new, manufactured cottages in Summer 2016 as part of an effort to address affordable housing needs in the organization’s service area of Gallatin, Park and Meagher Counties. A portion of these units were sold to affordable housing partners throughout the state, with HRDC retaining units to meet affordable housing needs in the communities of Belgrade and Livingston. Mindful of the stereotypes surrounding manufactured homes, HRDC engaged with architectural firms to address the some of the challenges posed by the cottages, namely the exterior aesthetic, storage, and parking. Our first development utilizing these units is Menucucci Square in Belgrade, MT, where we will place 20 units for use as affordable rentals.

The units, while small, are efficient and well laid-out. With current construction costs topping $170/square foot for entry level homes, HRDC sees these units as an opportunity to develop truly affordable housing for our customers with decreased dependence on state and federal financial assistance.

Mindful of the needs of our customers, HRDC elected to further develop the Menucucci Square property with a Head Start Center. Belgrade currently houses 2 half-day classrooms – this expansion will allow HRDC to host 4 full-day Head Start Classrooms in this rapidly growing community.

  • Construction state date: March – October 2017
  • Total development cost: $3,190,000
  • Number of units: 20 rental units, 1 Head Start Center with 4 full-day classrooms
  • List all funders and amounts from each: Housing: 100% Private lending; Head Start Center: $300,000 Head Start Grant, remainder private funding and community donations

 

 

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