City of Great Falls Housing Rehabilitation Loan Program

The City of Great Falls offers a Housing Rehabilitation Loan Program through the use of Community Development Block Grant Funds.  This Program offers loans to low income residents and landlords of affordable and low income housing units to make necessary upgrades to their properties. These loans are offered at no interest and fall within 3 basic categories of assistance as outlined below.  

Each application for funding is presented to a loan committee and awards are made based on the need for the project and overall benefit.  Mobile homes not on a permanent foundation are not eligible, the property must be within the city limits of Great Falls, work to be completed must be necessary in nature to bring a property up to code standards, or to provide for a safe and sanitary living environment. 

Applications for the programs are accepted year-round.  Applications and income criteria can be found at the bottom of this page. 

OVERVIEW OF PROGRAM REQUIREMENTS

• The property must be within the City limits of Great Falls.
• Mobile homes are not eligible unless attached to a permanent foundation.
• The loan must be securable by the City with not less than a second mortgage position.
• Applicant will sign a Promissory Note in addition to the Mortgage.
• Property must be insured for the life of the loan.
• All utilities and property taxes must be current.
• Total Loan to Value, including the City’s loan, must not be more than 100% of the property value.
• If program funds become limited, projects will be selected by the City’s Grant Committee on a "needs" basis.
• All City code and zoning requirements must be met.
• The full loan amount is due and payable to the City upon any transfer of title from the loan recipient(s).
• Eligibility of meeting a low to moderate income benefit is based on income of the applicant for residential or tenant for rental properties.
• Properties built prior to 1978 are subject to Lead requirements.

OVERVIEW OF GUIDELINES BY LOAN TYPE

1. Residential Improvement Loans:    

These funds are used primarily to assist single family homeowners in the low to moderate income range to make necessary repairs to bring their homes up to code and make them safe and sanitary places to live.

• The maximum loan amount is $25,000 per home, and minimum loan amount is $5,000. Applications over $25,000 may be reviewed; however other requirements may apply.
• The home must be your primary residence through the life of the loan.
• Your home must have a code deficiency or a system expected to fail within two years to qualify.
• The home must be rehabilitated to meet program regulations.
• Monthly payments to the City will be determined based on the City’s loan position.
• Loan must be approved by the City’s Loan Committee.

2. Rental Improvement Loans:  

These funds are used to assist property owners to make code-related repairs to rental properties.  Tenants must meet income eligibility criteria, meaning at least 51% of tenants must be low to moderately low income, in order for the property to be reviewed for eligibility.

• The minimum loan amount is $10,000 and $25,000 is the maximum loan per unit or $100,000 per project.  Applications over the $100,000 may be reviewed; however other requirements may apply including City Commission approval.
• Landlord cannot displace any existing tenants.
• 51% of the tenants must meet income requirements – see attached income sheet
• Rents for units being rehabilitated must be affordable to lower income tenants following HUD Section 8 guidelines for determining rent and must remain affordable for 2 years.
• Property must remain a residential housing unit for the life of the loan.
• Rental Loans require a monthly payment start upon substantial completion of the project.
• The rental property should be financially self-sufficient. (If not, landlord income verification may be requested)
• Loan must be approved by the City’s Loan Committee.

3. Emergency Loans (Rental & Residential):

The objective of this program is to stabilize and improve necessary services such as water and sewer by providing financial assistance to landlords and homeowners who own their property. The program will require payment to begin at a 0% interest when the project reaches substantial completion.

• There is no minimum loan amount, however the maximum loan amount is $25,000.  Applications over $25,000 may be reviewed; however other requirements may apply.
• This program requires a monthly payment back to the City upon substantial completion of work.
• This program is to address emergency needs such as water, sewer, heat related items and other items deemed emergency in nature by Planning and Community Development.  General maintenance is not covered.
• Emergency loans require approval from two managers of Planning & Community Development.

Low to moderate income guidelines for the City's loan programs are as follows:

If you have questions in regard to the City’s Housing Loan Programs, contact a member of our team.