BISMARCK, N.D. – February 12, 2010 – (RealEstateRama) — A group of 11 state and federal agencies and nonprofit developers are working together to develop solutions to North Dakota’s housing challenges.
The North Dakota Housing Finance Agency (NDHFA) organized a Statewide Technical Assistance Team (STAT) in 2007. Since then, STAT has been working with rural communities to devise housing strategies, develop projects, and help address financing issues needed to see projects through to completion. Assistance from STAT is targeted to communities of less than 20,000 people.
“Bringing together all the players who can address North Dakota’s housing needs has been a big step,” said Mike Anderson, NDHFA executive director. “These challenges are complicated; however, we are all working together, one project at a time, to make a difference.”
The group has hosted more than a dozen housing roundtables statewide with approximately 400 individuals representing 134 communities participating.
STAT has helped facilitate a number of projects to address housing needs in energy-impacted communities. These include:
- One single-family spec home in Belfield
- Three single-family spec homes in Ray
- Three single-family spec homes in St. John
- Six single-family spec homes in Tioga
- 16 rental units rehabbed in Stanley, all occupied by elderly households
- 20 units of affordable workforce rental housing in pre-development stage in Parshall
- 24 units of affordable workforce rental housing in Watford City
- 40 units of affordable rental housing in pre-development stage in Williston
- 51 units of affordable rental housing under construction in Williston
- Infrastructure improvements of raw land for housing construction in Tioga
STAT’s work will be a prominent topic of discussion at the 19th Annual Statewide Housing Conference on Feb. 23-24 at the Ramkota Hotel in Bismarck. Two sessions on Tuesday, Feb. 23, will include case-studies that illustrate what is involved in putting rural housing development and rehab projects together.
In addition to the NDHFA, STAT members include: Affordable Housing Developers, Inc., Center for Technology and Business, CommunityWorks North Dakota, Eastern Dakota Housing Alliance, Lutheran Social Services Housing, North Dakota Department of Commerce, North Dakota Public Finance Authority, North Dakota Rural Development Council, US Dept. of Housing and Urban Development-ND Field Office, and USDA Rural Development-ND Office.
“Outside of STAT activities, North Dakota Housing continues to work on developing technical and fiscal resources,” said Anderson. “Affordable housing is challenging, particularly when the investment is being made in rural communities.”
The 2007 Legislature authorized NDHFA to assist rural communities in addressing unmet housing needs including financial assistance for land development and loan guarantees. The Planning and Housing Development Division has five people dedicated to administration of the associated programs.
Housing Market Survey Grants ensure communities understand their true housing needs. The grants are a cost-sharing incentive to develop a local housing strategy by helping to pay for an analysis of current and future housing needs. Program was launched in 2007. NDHFA has invested $92,377 in surveys of 13 communities and 11 counties.
Because rural communities often have difficulty attracting developers and lenders may be reluctant to assume the risk of providing construction lending, particularly if it is speculative, NDHFA’s Construction Loan Guarantee program provides guarantees to lenders on construction loans for affordable single-family housing. Program launched in 2007. NDHFA has provided guarantees valued at $1.3 million for the development of 10 single-family homes.
The cost of developing new housing in rural communities is typically higher than the value of the finished product. To address this issue, NDHFA offers:
- A Rural Community Housing Development program which provides low-cost financing for predevelopment soft costs like land acquisition and site development. Program launched in 2007. The agency has provided $345,000 worth of financing for two projects.
- A Rural Housing Investment Incentive pilot program supports the development of single- or multi-family housing, or the substantial rehab of existing structures in difficult to develop areas by offering a dollar for dollar match for private sector investment. The Request for Proposals deadline for the pilot project is Feb. 15, 2010. Up to $400,000 of Agency reserves is available. The NDHFA will report the pilot results to an interim legislative committee, and will pursue other sources of funding to allow for the program to become permanent.
Rural communities rely significantly on their existing housing stock due to high construction costs. A Rural Housing Rehabilitation Loan program provides a low-cost, revolving fund for the rehabilitation of existing housing stock. Program launched in 2007. NDHFA has provided $158,205 to finance three projects.
NDHFA administers additional programs that support housing development and rehabilitation statewide:
- The Low Income Housing Tax Credit program provides incentives for the production and rehabilitation of affordable rental housing by compensating the property owner for charging rents that are generally lower than would be feasible without the credits. Since this federal program was launched in 1986, the Agency has allocated $26 million in tax credits for the production of more than 5,000 units for low-income households.
- The Neighborhood Stabilization Program provided funds to purchase foreclosed or abandoned property and to rehabilitate, resell, or redevelop this property in order to stabilize neighborhoods and stem the decline of house values. NDHFA began administering the rural housing portion of this federal program in 2008. Over the past year, the Agency has awarded more than $6 million to cities and non-profit organizations for the construction or redevelopment of 157 rental units and eight single-family homes.
- Rehab Accessibility Program grant dollars address accessibility issues in single- or multi-family properties occupied by low-income individuals with physical disabilities. Originally a federal program, NDHFA began funding the program solely in 2006. Since that time, the Agency has provided 64 project grants valued at approximately $225,000 and leveraged almost $750,000 in matching funds.
- Helping HAND grant dollars support the housing needs of North Dakota’s lower-income families by offering a funding source to targeted single- and multi-family housing rehabilitation programs statewide. Over the past 10 years, the Agency has supported the development and rehabilitation of almost 3,000 housing units statewide by providing more than $2.4 million in grants that leveraged $10.7 million dollars worth of matching funds.
For more information on the STAT or NDHFA’s programs, contact Jolene Kline, NDHFA’s planning and housing development division director, at (701) 328-8080, (800) 292-8621 or (800) 366-6888 (TTY).
