Good Deeds Program
The Good Deeds program aims to preserve existing inventory for locals serving the community.
Down Payments for Local Buyers
The Good Deeds program offers up to 20% of a home’s appraised value to buyers who agree to a permanent deed restriction requiring full-time local workforce occupancy. BSCHT provides buyers with funding at closing to use as their down payment. Since the funds are not a loan, BSCHT does not require repayment.
Restriction
At least one occupant must work a minimum of 30 hours per week for a business located in Big Sky. The occupant can be either the homeowner or a long-term tenant. Short-term rentals are strictly prohibited.
Compensation
BSCHT gives cash for the deed restriction. A trained and dedicated committee reviews all applications and make recommendations. At this time, awards will not exceed 20% of the property’s value or sales price.
Lending
You may use any lender who understands the deed restriction and agrees to record the legal documents in the following order:
- First: The Property’s Deed (shows you own the home)
- Second: The Deed Restriction (preserves the home for locals)
- Third: The Lender’s Mortgage or Deed of Trust
The following lenders have agreed to the lending requirements.
- First Security Bank Elex McAlear
- Evergreen Home Loans Amanda Menzel or Brett Evertz
- First Western Trust Scott Prince
- One Trust Home Loans Joe Post
Prepare to Apply
- Work with a real estate professional to identify a property within the Big Sky Resort Area District priced under $1 million.
- Obtain a preapproval letter.
- Gather tax and employment documents. The Housing Trust requests these documents annually.
What is a deed restriction?
LIMITATION
A limitation that restricts how owners can use their property.
ON TITLE
The deed restriction is recorded on the property’s title.
PERMANENT
The restriction transfers with ownership in perpetuity.
Selling a Good Deeds Home
When an owner sells a Good Deeds home, the next buyer must meet the deed restriction requirements. This limits the buyer pool because second-homeowners and short-term investors are not eligible to purchase.
There are no income limits for buyers or appreciation caps for sellers. Owners may hire any real estate professional, and they must disclose the deed restriction to potential buyers.
Future buyers may not reapply for Good Deeds on a home that is already deed-restricted. However, future buyers of Good Deeds homes can apply for a deferred down payment assistance (DPA) loan from Big Sky Community Housing Trust. DPA borrowers must use the Good Deeds home as their primary residence, cannot own other residential properties, and qualify for their primary loan with a lender who agrees to the terms of the deed restriction.
0% DEFERRED LOAN
Borrowers make no monthly payments on the principal as long as they continue to meet program requirements.
10% DPA
BSCHT’s loan is available for up to 10% down, with a minimum of $10,000 and a maximum of $75,000.
GOOD DEEDS ONLY
Only deed-restricted homes occupied as the borrower’s primary residence are eligible for down payment assistance.
FREQUENTLY ASKED QUESTIONS
Who is eligible?
The program prioritizes local buyers using the funds as their down payment to purchase their primary residence. However, anyone interested in purchasing, selling, or investing in a Big Sky property may participate.
I already own my home. Can I participate?
Current owners may participate, too! If you have a mortgage, your lender must agree to subordinate to the Housing Trust's deed restriction.
What properties are eligible for Good Deeds?
Buyers can apply for properties under $1 million within the Big Sky Resort Area District. Existing owners have the same value restriction.
How do I apply?
Buyers must identify a property before applying and provide a preapproval letter from a lender who agrees to the program's requirements. Then, they can complete an application.
If existing owners have a mortgage, they must ask their lender to subordinate to the deed restriction before they apply.
Which local lenders accept the deed restriction terms?
The following lenders are familiar with Good Deeds and have agreed to the program’s lending requirements.
- First Security Bank Elex McAlear
- Evergreen Home Loans Amanda Menzel or Brett Evertz
- First Western Trust Scott Prince
- One Trust Home Loans Joe Post
What are the key terms of a Good Deeds restriction?
- One occupant must work 30 hours per week in Big Sky and use the property as their primary residence. The occupant can be the owner or a tenant.
- This occupant must earn 75% or more of their income in Big Sky.
- Short-term rentals are strictly prohibited.
BSCHT completes an annual compliance check that requires one occupant to submit tax documents and proof of local employment.
Where can I find information on the Good Deeds agreement?
Good Deeds Deed Restriction
Good Deeds Acknowledgement
What happens to the deed restriction when ownership changes?
The deed restriction follows the property in perpetuity. Because a property can only be deed restricted once, additional Good Deeds funding is unavailable to subsequent buyers. However, BSCHT does provide 0% deferred down payment assistance loans to subsequent buyers who will use the home as their primary residence.
As an investor, can I participate and rent my property?
Yes, you can rent your property. At least one occupant must work in Big Sky a minimum of 30 hours a week and earn 75% of their income in Big Sky. Short-term renting is strictly prohibited. One tenant will need to complete Internal Revenue Service Form 8821 to provide BSCHT with tax documents on an annual basis.
How much money will I receive for a Good Deeds restriction?
The amount a Good Deeds restriction is worth depends on the circumstances, how much an applicant requests, and whether the property meets the review criteria. Currently, awards do not exceed 20% of the property's appraised value.
Who determines if a property will receive a Good Deeds restriction?
A trained and dedicated committee reviews all applications and makes recommendations to BSCHT's board of directors.
What are the tax implications if I participate in Good Deeds?
Because each individual's tax circumstances are different, applicants should consult with their tax professionals.
How does BSCHT validate a property’s value?
Before purchasing a deed restriction, BSCHT requires an appraisal of the property at the applicant’s expense. BSCHT recommends that all applicants apply for the program before ordering a new appraisal unless one less than 180 days old already exists.