September 04, 2012
North Dakota Housing Finance Agency
Fund raising for an affordable housing project in Bowman is off to a good start thanks to a local bank.
Dakota Western Bank has contributed $275,000 to the North Dakota Housing Incentive Fund (HIF) to support the development of The Landing, a 24-unit apartment complex for families and disabled households that is being developed by Lutheran Social Services Housing.
"Lutheran Social Services Housing is sincerely appreciative of Dakota Western Bank's support. We are eager to secure the remaining funds so we can break ground on this much-needed housing project," said John Phillips, Lutheran Social Services Housing real estate development specialist.
Capitalized by state taxpayers, HIF provides low-cost financing to developers of affordable rental housing. Taxpayers contributing to the fund receive a dollar for dollar state income tax credit. Contributions can be directed to a specific project or community. The North Dakota Housing Finance Agency (NDHFA) is the fund administrator.
"Dakota Western Bank is eager to participate in The Landing housing project being developed by Lutheran Social Services Housing." said Dakota Western Bank President Ron Palczewski. "The Landing apartments will provide a safe and affordable home for our ABLE, Inc. residents and will offer additional housing to Bowman County residents. We encourage other area businesses and individuals to contribute to HIF and direct their contribution to The Landing housing project."
The total cost of developing The Landing is more than $3 million. Before Lutheran Social Services Housing can break ground, it needs to secure $1 million in HIF contributions. The low-cost financing provided by the fund reduces development costs enabling the apartments, once completed, to be rented for below market rate.
"The energy boom has significantly increased the need in Western North Dakota for affordable housing," said Mike Anderson, NDHFA executive director. "Through the cooperative efforts of public and private entities, we are working to address community needs."
Lutheran Social Services Housing, a program of Lutheran Social Services of North Dakota, supports the continued vitality of the state's smaller communities by providing nonprofit affordable housing and housing-related services, with eight rental housing projects currently completed and under management, with several other projects in various stages of development.
Lutheran Social Services of North Dakota is a statewide social services agency serving thousands of North Dakotans in need with affordable housing, food, disaster recovery, counseling and therapy and other programs that strengthen individuals, families and communities without regard to clients' race, religion, gender or economic status.
Dakota Western Bank has a history in southwest North Dakota, dating back to 1910, and is committed to the betterment of the communities in which they serve. Dakota Western Bank is based in Bowman, ND, with branches in Hettinger, Rhame and Scranton.
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.