The federal housing programs that are fueling affordability are at risk
Photo illustration by Getty Images.
For a growing number of Montana families, homeownership is slipping further out of reach. At Helena Area Habitat for Humanity, we're doing everything we can to change that, but we can't do it alone. We rely on a mix of local partnerships, volunteer labor and federal support to make affordable homeownership a reality for families across our region. Two of the most critical tools in our toolbox are programs administered by the U.S. Department of Agriculture — the Section 502 Direct Loan Program and the Section 523 Mutual Self-Help Housing Program.
Today, these programs are at risk. The administration's proposed federal budget would eliminate or drastically reduce both. If Congress doesn't act to preserve them, the consequences for the future of homeownership in Helena—and across Montana—will be severe. The families we serve, many of them first-time homebuyers, will be left with even fewer options in an already challenging housing market.
The USDA 502 Direct Loan Program provides low-interest mortgage financing to families who cannot qualify for conventional loans. These mortgages make it possible for hard-working Montanans to purchase safe, modest homes with monthly payments they can actually afford. For many families, a 502 loan is the key that unlocks stable housing and long-term financial security. It's not a handout; it's a pathway to opportunity and resilience.
The USDA 523 Mutual Self-Help Housing Program provides operating grants to nonprofits like ours. This funding helps us cover the costs of coordinating volunteers, supervising job sites, and managing construction, all without passing those costs on to the families who purchase our homes. This is what allows us to keep homes truly affordable while maintaining high standards for quality and stewardship. The return on investment is extraordinary: Homes that remain affordable for generations of Montanans and help create lasting neighborhood stability.
Together, these programs help us stretch every dollar, serve more families, and plan for the future. Without them, our ability to build at scale and keep housing affordable would be significantly constrained, at a time when the need has never been greater.
Nowhere is the importance of these programs more evident than at Rose Hills, our largest and most ambitious project yet. Located on a 250-acre site on Helena's east side, Rose Hills is where we plan to build at least 350 permanently affordable homes during the next decade. These homes will serve working families, seniors, and others who are increasingly priced out of Helena's fast-growing housing market.
Rose Hills is a lasting investment in our community. It will feature homes of various sizes, green space, and walkable infrastructure—a true neighborhood built for generations. It represents a vision of what's possible when public support, private commitment, and grassroots energy come together. But without continued support for the 502 and 523 programs, the pace and affordability of this work will be at risk.
We recognize that Congress faces tough fiscal decisions, but these two programs are high-impact, cost-effective investments that deliver real results for Montana. They help families build equity, keep workers rooted in their communities, and fuel local economies. Losing them would be a step backward in our efforts to address the state's growing housing crisis.
Montanans don't need more barriers to housing; they need bold leadership. We urge Sens. Steve Daines and Tim Sheehy, and Congressmen Ryan Zinke and Troy Downing to stand up for our communities and protect the tools that make homeownership possible. Now is the time to reject these harmful cuts and fully fund the USDA 502 and 523 programs. These aren't just housing programs—they're the foundation for a stronger, more stable Montana.
And we need them now more than ever.
Jacob Kuntz is the Executive Director of Helena Area Habitat for Humanity.
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