Heitkamp Expresses Opposition to New Federal Proposals Which Could Damage North Dakota’s Affordable Housing Efforts

Because of State’s Economic Growth, State Will Need 30 Percent More Housing Units by 2025 – Rental Rates in Williston and Dickinson Near Top of National Charts

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WASHINGTON, D.C. – March 16, 2015 – (RealEstateRama) — >U.S. Senator Heidi Heitkamp expressed her opposition to new proposals by the federal agency overseeing housing that would negatively impact the ability of families to obtain decent, safe housing at a reasonable cost. She also pushed back on the agency’s efforts to make significant funding cuts to North Dakota community, economic, and affordable housing development priorities in its 2016 budget.

Heitkamp pressed U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro about his agency’s plans to alter its Community Development Block Grant (CDBG) program – which helps North Dakota communities invest in infrastructure, create jobs, and tackle poverty – as well as its HOME Investment Partnerships (HOME) programs in the state – which help construct and improve affordable housing for low-income families. HUD’s proposed changes would prevent many small communities from directly receiving CDBG and HOME funds, hindering the ability of cities to provide low-income housing. If these proposals had been in place in 2014, Bismarck, Fargo, and Grand Forks could have lost nearly $1 million in funds devoted to community development projects and housing assistance for low-income families.

In addition, Heitkamp challenged Castro on his agency’s proposal to eliminate funding for local rental surveys to calculate Fair Market Rents (FMRs) – a measurement which helps low-income families afford decent housing – that reflect the real cost of housing across the state. One such HUD-funded survey in 2012 showed FMRs that were 70 percent lower than they should have been which helped Heitkamp request and obtain higher FMR levels in Williams, Ward and Mountrail counties in 2013. Another proposed change in FMR measurements would likely cause FMRs in all three counties to drop by one-third, dramatically reducing housing assistance for low-income families and seniors who are already feeling the crunch of the state’s housing availability crisis. Heitkamp urged HUD to continue using these more accurate one-year local surveys, as opposed to a five-year survey which would not account for the state’s spike in housing prices and demand in the wake of its energy boom.

“North Dakota families have been hit hard by our state’s oil and gas boom, which has caused housing costs to soar – and fast – past New York or Los Angeles prices,” said Heitkamp. “When I brought Secretary Castro out to the western part of the state last fall, he saw for himself the unprecedented growth our communities are experiencing, and heard firsthand about the struggles families face in finding suitable housing with a price tag they can handle. Over the past year, North Dakota has received needed federal support to help families afford homes in North Dakota. But I’m now concerned with his agency’s proposed cuts to programs that have helped make sure communities can get the support they need to build strong neighborhoods at affordable prices. As Castro saw up close, one-size-fits-all plans are not the solution for North Dakota families searching for suitable housing but feeling the crunch. It is my sincere hope that Secretary Castro revisits his agency’s potentially destructive changes and continues to work toward a more proactive response to our current housing shortage.”

Heitkamp has long been committed to addressing North Dakota’s housing crisis across the state and making more affordable housing available to families. As North Dakota’s Attorney General, she served on the board of directors of the state’s Housing Finance Agency and worked to promote better housing solutions. In doing this, Heitkamp has been working on all sides to make sure hardworking families can afford to either rent or buy suitable housing.

In October, Heitkamp brought HUD Secretary Castro to North Dakota where he toured the Williston area to examine the serious demand for rental and permanent housing which is expected to increase by 30 percent statewide over 15 years, and by up to 167 percent in parts of the state’s oil patch. During the visit, Castro announced HUD had approved emergency waivers to provide public housing authorities with more rental cost flexibility to more accurately reflect the needs of local western North Dakota residents, as Heitkamp asked him to do. Just one month prior to Castro’s visit, Heitkamp pressed him on his agency’s proposed FMRs for North Dakota which do not accurately account for the state’s booming population.

In 2013, Heitkamp worked with HUD to see that FMRs were increased to appropriate levels for areas of North Dakota where rents have quickly soared and families need assistance to afford housing. As a result of her efforts, new FMRs were set for Ward, Mountrail, and Williams counties.

Last December, Heitkamp helped secure higher Federal Housing Administration (FHA) loan limits for seven western North Dakota counties, where the cost of housing has spiked. The raised ceiling would allow more low-to-middle income families, first-time home buyers, and seniors afford to purchase a home, which has become increasingly out of reach as a result of the state’s housing shortage.

Heitkamp has long been working to raise awareness about North Dakota’s unique housing needs and held meetings in the spring of last year with local, state, and federal officials to learn more about housing situations across the state, and to work toward solutions together. She also held housing summits in Bismarck and Fargo last year to bring about a larger discussion about housing issues in the state. Last fall, Heitkamp was recognized for her strong commitment to making sure North Dakota families have access to affordable housing by the Fargo Housing & Redevelopment Authority, with its Super Hero for Affordable Housing award for her steadfast and proactive work in addressing challenges North Dakota families face in obtaining sufficient, affordable housing.

Last fall, Heitkamp launched her Strong & Safe Communities Initiative which is focused on tackling new challenges to North Dakota communities in the wake of the oil and gas boom. Specifically, Heitkamp is leading a Strong & Safe Communities Task Force comprised of leaders and experts from across the state in key issue areas. They will look to address challenges to Indian Country like housing, affordable housing across the state, as well as broader infrastructure stress, increases in drug-related crime, human trafficking and domestic violence, among other issues. The group, led by Heitkamp, will work together to offer recommendations for a five year plan to help make sure North Dakota’s communities remain strong and safe for decades to come by addressing these issues head on.