Agency Makes Affordable Housing Funding Commitments
BISMARCK, ND – The North Dakota Industrial Commission (Commission) announced today that six projects have received funding commitments from the North Dakota Housing Finance Agency (NDHFA) to support the construction or rehabilitation of more than 200 affordable housing units.
During its most recent funding round, NDHFA allocated $3.25 million in federal tax credit authority through the Low Income Housing Tax Credit (LIHTC) program. When syndicated, the credits will generate approximately $29 million in project equity. NDHFA also awarded $2.76 million through the National Housing Trust Fund (HTF).
“The development programs North Dakota Housing Finance Agency administers help to ensure vulnerable households have housing that is safe and affordable,” said Commission members in a joint statement. Consisting of Gov. Doug Burgum as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, the Commission oversees NDHFA.
About the Projects
GLS Development LLC was awarded $208,753 in credit authority through the LIHTC program to support the redevelopment of Holiday Village in Devils Lake, preserving 40 housing units.
Commonwealth Development Corp. was awarded $804,375 in credit authority through the LIHTC program and $500,000 from the HTF to support the construction of City Flats, a 42-unit project in Fargo.
Beyond Shelter Inc. (BSI) was awarded $720,274 in credit authority through the LIHTC program to support construction of HomeField III. The Fargo project will create 39 new housing units for households age 55 and older.
BSI was also awarded $804,375 in credit authority through the LIHTC program and $1,310,000 through the HTF to support the construction of The Milton Earl. The Fargo project will provide housing for 42 households age 55 and older.
Grand Forks Homes Inc. was awarded $796,000 in credit authority through the LIHTC program and $950,000 from the HTF to support construction of the Jackson Flats Community. The Grand Forks project will create 40 new units for households age 55 and older.
Sierra Townhomes, a West Fargo project targeted to households age 55 and older, was awarded $47,790 in credit authority through the LIHTC program to address increased material costs. BSI is the developer of the 36-unit project.
About the Programs
LIHTC provides an indirect federal subsidy used to finance the construction or rehabilitation of rental housing for lower-income households. The HTF’s purpose is to increase and preserve the supply of housing for extremely low-income households including families experiencing homelessness. The application process for both programs is competitive with the top scoring projects receiving awards.
“The applications North Dakota Housing Finance Agency received this year were primarily for housing for older adults, an area of significant demand,” said Dave Flohr, the agency’s executive director. “The statewide vacancy rate for housing designated for older adults is currently less than 2 percent.”
NDHFA’s programs have allocation plans that are reviewed annually to ensure that its financial awards address the state’s greatest housing needs. Of the eight applications received by the agency in this funding round, five were for projects for households age 55 and older.
Applicants must provide evidence that there is a need for the proposed housing, that the construction costs are reasonable, and that the project would not be financially feasible without the public subsidy. Projects that receive federal funds to support their development are required to be affordable for a period of 30 years.
More information about the programs administered by NDHFA and the projects awarded assistance is available online at www.ndhfa.org.