North Dakota Affordable Housing Programs Make Parshall Project Possible

PARSHALL, ND – A 20-unit housing project in Parshall would not have been possible without two programs administered by the North Dakota Housing Finance Agency (NDHFA) and the strong support of local lenders Lakeside State Bank/Peoples Bank and Trust.

 

The July 28 groundbreaking marked the start of construction for Bayview Townhomes and Apartments in Parshall. Lutheran Social Services (LSS) Housing, Inc., a subsidiary of Lutheran Social Services of North Dakota, is developing the project in part through a $593,000 Neighborhood Stabilization Program (NSP) grant and a $100,000 Rural Housing Investment Incentive Pilot Program (RHIIP) grant. Both programs are administered by the NDHFA.

 

“Our economy is growing, creating significant demand in many rural areas for workforce housing. North Dakota Housing’s NSP and RHIIP programs are helping small communities address the need for quality affordable housing,” said Jolene Kline, NDHFA planning and housing development division director.

 

The total cost of constructing the Bayview development is approximately $2.3 million, but the anticipated value of the project once it is complete is estimated to be much less than that, which means there is a significant valuation gap for the developer to overcome.

 

“The NSP and RHIIP dollars are leveraging other investments to make this project possible,” said Kline. “This is a perfect example of how government, private and nonprofit sectors can work together to meet the housing needs of our rural communities in North Dakota.”

 

Without the RHIIP grant and matching local funds, $200,000 in additional debt would be required in the project. The increased project income needed to service that additional debt would require rents to be, on average, about $120 higher than currently anticipated.

 

“With a higher rent level, the units would be unaffordable for many households, making it much harder for LSS Housing to meet our organizational goal of creating housing that is affordable to households earning $10 an hour or less,” said Jessica Thomasson, LSS Housing director.

 

Five units are set aside for very low income households (those with incomes at or below 50 percent of area median income).

 

Bayview Townhomes will consist of 8 three-bedroom units and 4 two-bedroom units, and Bayview Apartments will offer 8 two-bedroom units. The townhomes will be located at the intersection of 2nd Ave SW and 4th St SW, and the apartments will be built at 1st St SE and Central Ave in Parshall.

 

Lakeside State Bank/Peoples Bank and Trust, the North Dakota Land Department, North Dakota Department of Commerce, Housing Authority of Mountrail County, Affordable Housing Developers, Inc., and the City of Parshall are also participating in the development. The Bayview development is expected to be ready for occupancy by the end of 2010.

 

For more information on housing development and rehabilitation resources available from the NDHFA, contact Jolene Kline at 701-328-8080, 800-292-8621 or 800-366-6888 (TYY).