Glacier Affordable Housing Foundation (GAHF)

Montana's Glacier Affordable Housing Foundation (GAHF), created by Glacier Bank in 1995, provides affordable housing for low- to moderate-income state residents. The foundation provides down payment and closing cost assistance to first-time homebuyers who have incomes at or below 80 percent of their county of residence median income. Eligible first-time buyers must have stable employment, good credit, and a minimum 1-percent down payment in cash or sweat equity. They must also complete a nine-hour homeowners' education course offered by attending a local community college or privately conducted class. Funds provided to qualifying homeowners are secured through GAHF's resale restriction agreement (RRA) that contains a recapture clause requiring loans to be paid in full when the home is sold or refinanced. No interest accrues and no monthly payments are required. An equity share provision in RRA requires the owner to share the equity with GAHF to the extent the assistance represents the original purchase price of the home.

The goal of this program is to provide affordable housing for Montana's low and moderate-income residents.

As of March 31, 2003, GAHF has 215 homes in its portfolio, representing 10 different grants. Of the families that have received assistance, nearly 77 percent have incomes at or below 69 percent of median income. Between 1996 and 2003, the average cost of homes purchased under the program increased from $67,890 to $109,020. This increase in property value enables the foundation to use equity monies to provide additional subsidies to the next generation of first-time homebuyers. As funds are "recaptured," they are made available to other low- to moderate-income homebuyers in the jurisdictional area served by the original funding source.