BISMARCK, ND – July 8, 2011 – (RealEstateRama) — The North Dakota Housing Finance Agency (NDHFA) has awarded more than $4.2 million through the federal Neighborhood Stabilization Program for the redevelopment of foreclosed, abandoned or vacant properties into affordable housing.
“Because economic growth has put a strain on the state’s housing resources, North Dakota Housing gave preference to applications that create rental units for households of modest means,” said Jolene Kline, NDHFA planning and housing development division director. “The grants reduce developer costs; therefore completed units can be rented or sold at below market rate.”
Financial awards include:
Belfield – Lutheran Social Services Housing will receive $750,000 for the construction of the Belfield Apartments consisting of 8 two-bedroom and 4 three-bedroom units. All of the NSP assisted units will be targeted to households that earn no more than 120 percent of the Area Median Income (AMI).
Fargo – The City of Fargo will receive $445,800 for the redevelopment of three single-family homes on vacant infill lots. The housing created will be sold to families that earn no more than 120 percent of AMI.
Tioga – Lutheran Social Services Housing will receive $2,000,000 for the construction of the Nordic Hills Apartments. The development will consist of 1 one-bedroom, 17 two-bedroom and 8 three-bedroom units for households with the income target ranging from 50 to 60 percent of AMI.
Tioga – Lutheran Social Services Housing will receive $1,021,450 for the construction of Nordic Hills Townhomes. The development will consist of 8 two-bedroom and 2 three-bedroom units targeted to households that earn no more than 120 percent of AMI.
“The NSP funds were used to make a strategic and lasting impact on our neighborhoods and communities,” said Kline. “These housing units will provide affordable rental housing opportunities for essential workers and those on fixed incomes.”
In Williams County, the maximum eligible income for a two-person household ranges from $23,450 at 50 percent AMI to $56,280 at 120 percent AMI. In Cass and Stark County, 120 percent of AMI is $66,720 and $59,640 respectively.
NSP is funded by the U.S. Department of Housing and Urban Development. The intent of the federal program is to stabilize neighborhoods and stem the decline of property values. NDHFA was awarded $5 million as part of the third round of funding known as NSP3. The assistance was authorized under Section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Only properties in targeted areas were eligible for the funds. NDHFA anticipates that its remaining NSP funds will be allocated later this year.
The Industrial Commission of North Dakota, consisting of Governor Jack Dalrymple, as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, oversees the NDHFA.