What Are We Trying to Do? Habitat for Humanity of Southwest Montana is now conducting a neighborhood redevelopment project in one of Southwest Montana's oldest communities - Butte. On the Continental Divide, ringed by beautiful mountain ranges, Butte is the fabled "richest hill on earth," where most of the nation's copper was mined, and many fortunes made that fueled other industries. What is left in Butte is the nation's largest Superfund site and the need to clean up after more than 120 years of boom-and-bust mining cycles. Butte has a large Historic Landmark District, including troubled neighborhoods of crumbling houses and loss of hope. Volunteers from KXLF-TV in Butte frame in the walls on the Butte Oprah Winfrey House in the Central Butte Neighborhood. A recent housing study in Butte reported a strong need for low-cost new construction of housing units, as well as neighborhood redevelopment and urban "homesteading" in the city of Butte, particularly Uptown and on the Hill. Habitat for Humanity's self-help construction program was mentioned repeatedly as being one solution to this large need. As a program model, Habitat already offers a type of "homesteading" in terms of self-help and neighborhood housing development. In response to local needs, and to meet the need for affordable owner-occupied housing for very low income people, Habitat has developed its "Habitat Neighborhood Redevelopment Project." In Butte, Habitat has been developed as a larger presence than has been typical of Habitat in other smaller western cities, and the affiliate has worked hard to amass resources to develop affordable housing for very low income residents in Butte. We have received two tracts of land that are the center of a large neighborhood that the affiliate has targeted on Butte's battered lower hill. These tracts will support the construction of eight new houses. In addition, we have begun an aggressive investigation of the ownership and condition of other homes in the target neighborhood. As a Community Housing Development Organization, Habitat is ready to administer a program of new construction and minor rehabilitation in the target Habitat neighborhood, working in partnership with Butte-Silver Bow and other housing agencies in the community. Homeowner Education Course Habitat has established a homeowner education course in partnership with the National Affordable Housing Network, a non-profit organization specializing in making low-cost housing as efficient and durable as possible. The course prepares low-income families in need to be good partner families for Habitat or for other programs. (This course has graduated nearly 100 people since its first session in June, 1995.) We will work in partnership with the National Affordable Housing Network. The Network will assist in securing professional services to develop plans and rehab assistance provided by local professionals, with the Network's focus on innovation and dramatic improvements in resource and energy efficiency, as well as environmentally sound building practices. Since this is an older neighborhood, lead, asbestos and other pollutants are a concern. We are looking at a model program that delivers substantial improvements in efficiency - at least 50 percent more efficient than current practice to ensure that the homes remain affordable over time. At present, Habitat has assets of more than $63,000 in inventory and land. With in-kind donations and cash donations totaling an average of $15,000 for each new construction project, Habitat will partner with local organizations to "sponsor" each project and provide both funds for construction. Habitat will work with the Butte Silver Bow Historic Preservation Office to make sure each homebuyer takes advantage of tax abatement opportunities, which total at least $29,000, toward program match for this effort. With the Affordable Housing Fund, a revolving loan fund set up to facilitate the rehabilitation of this neighborhood through the new construction of decent housing, Habitat for Humanity of Southwest Montana will serve the need for very low income housing through a flexible program of new construction, minor rehab and acquisition and major rehab in households in our target neighborhood. Households will be given a no-interest mortgage covering all costs to the Habitat affiliate - material, contracted labor and related construction costs. Affordable Housing Funds will be re-paid to the Fund for use in a revolving Habitat partnership program to go on into the future, with Habitat funds being repaid to Habitat. Habitat's program has the capability to stretch Affordable Housing Funds to their maximum. Through significant use of volunteer labor and through the dedication of our local fundraisers and our partner families, Habitat can complete 10 units of owner-occupied housing for very low income families, at a cost much lower than most housing program providers.

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