HOUSING DOLLARS DIRECTED TO ENERGY AND DISASTER NEEDS TAX PAYERS ENCOURAGED TO CONTRIBUTE TO FUND
BISMARCK, ND – November 23, 2011 – (RealEstateRama) — The state will direct more than $13 million of its housing incentive fund credit authority to disaster and energy impacted communities.
“There is a critical need for affordable rentals in oil and gas producing communities, and in areas across the state recovering from flooding,” said Gov. Jack Dalrymple. “The Housing Incentive Fund (HIF) can strengthen our communities, with neighbor helping neighbor.”
The HIF is capitalized by contributions from state income and financial institution taxpayers. Contributors receive a dollar-for-dollar state tax credit that may be fully claimed in the year their contribution is made, essentially prepaying their state income taxes by contributing to the HIF. Contributions made before Dec. 31 can be taken on your 2011 return.
“Gaps in financing are slowing down and even keeping good projects from being built,” said Attorney General Wayne Stenehjem. “We need to create more housing now for the individuals and families that are the lifeblood of our continued economic growth.”
Contributors can target their contributions to a specific project, or a specific community or area so their funds help build affordable rental housing in their community.
“Every dollar counts in affordable housing development,” said Agriculture Commissioner Doug Goehring. “This fund can get much needed projects built while offering a unique way for individuals and businesses to make an impact in their communities.”
The HIF was created during the 2011 Legislative Assembly, and is administered by NDHFA. During the recent Special Legislative Session, the fund’s credit authority was increased from $4 million to $15 million.
NDHFA’s amendments to the HIF plan set aside 90 percent of the credit authority for use in disaster- and energy-impacted areas, allowed for the substantial rehab of existing rental units damaged by disasters, and increased the cost caps for construction of new units. Other changes allow projects to qualify for more funding if units are provided for extremely low-income households and tenants that require supportive services.
“North Dakota needs safe, decent and affordable housing for our workers, families and seniors,” said Mike Anderson, NDHFA executive director. “The program builds public-private partnerships that are vital to successful affordable housing projects.”
To date, NDHFA has issued two conditional commitments for allocations under the HIF program totaling $464,000 – one supports the construction of a 12-unit property in Crosby and the other fills a funding gap on a 32-unit project in Minot. Project proposals are reviewed quarterly. The next application deadline is Dec. 31, 2011.
More information on the Housing Incentive Fund is available at www.ndhousingincentivefund.org or by contacting NDHFA’s Planning and Housing Development Division Director Jolene Kline(701) 328-8080, (800) 292-8621, or (800)366-6888 (TTY).
The Industrial Commission of North Dakota, consisting of Governor Jack Dalrymple, as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees the NDHFA.
