North Dakota Rural Housing Incentive Available Again

BISMARCK, ND -- The North Dakota Housing Finance Agency announced today that funds are again available through its Rural Housing Investment Incentive Pilot Program.

"The intent of the incentive is to help rural communities meet an increased demand for housing by encouraging private sector investment," said Jolene Kline, NDHFA planning and housing development director. "Our goal is to bridge the financial gap between construction costs and property value while keeping housing affordable."

The program supports development of single- or multi-family housing, or the substantial rehabilitation of existing structures in areas of the state that have proven difficult to develop by matching private sector investment. Eligible contributions include financial investments, donated property and infrastructure improvements.

"In small housing markets where there has been little or no housing development for a generation or more, appraised values of property are well below construction costs," said Mike Anderson, NDHFA executive director. "Without soft money, it is very difficult to finance single-family homes and rental projects typically cannot generate enough income to support debt service and cover operating expenses."

NDHFA committed up to $400,000 for the pilot program. Due to a turn back, the Agency has $43,000 available. Interested parties must submit a written proposal to be considered. The deadline for submission is July 30, 2010.

"The applicants must demonstrate that the community has an unmet housing need or shortage, and that the proposed activity will make a positive impact," said Kline.

For more information on the Rural Housing Investment Incentive Pilot Program or the Request for Proposals, contact Jolene Kline or Bill Hourigan at (701) 328-8080, (800) 292-8621 or (800) 366-6888 (TTY). The RFP and program information is also available online at www.ndhfa.org.