May 22, 2012
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North Dakota Housing Finance Agency

 

 The Industrial Commission of North Dakota has authorized the North Dakota Housing Finance Agency (NDHFA) to increase the maximum guarantee under the Rural Construction Loan Guarantee Program that assists development in rural communities with a population of less than 5,000.
 
“North Dakota Housing’s program helps alleviate an obstacle to financing construction of affordable single-family housing in rural areas,” said Gov. Jack Dalrymple. “This type of development is an important part of a housing strategy for these communities.”
 
“Rural lenders may be reluctant to assume the risk of speculative construction lending,” said Attorney General Wayne Stenehjem. “The guarantee program helps mitigate this perceived risk.”
 
NDHFA will share in any potential net loss incurred by a local lender for a construction loan not to exceed $187.000. With a minimum developer responsibility of 15 percent, this allows for a guarantee on a home valued at $220,000 or less. The previous guarantee was based on a home price not to exceed $160,000.
 
“The program has proven to be an excellent means to spur single-family construction, and North Dakota Housing reports that there is continued interest statewide,” said Agriculture Commissioner Doug Goehring. “Since 2007, NDHFA has provided guarantees, valued at more than $1 million, for the development of 17 homes in Tioga, St. John and Belfield.”
 
“North Dakota Housing’s planning and housing development staff looks forward to forging more relationships with rural community leaders to create practical solutions to their housing needs,” said Mike Anderson NDHFA executive director.
 
NDHFA offers rural communities multiple resources – funding for housing market surveys, development and rehabilitation financing, and technical assistance. For more information on the support provided, contact the agency’s planning and housing development division director, Jolene Kline, at (701) 328-8080, (800) 292-8621, (800) 366-6888 (TTY) or info@ndhfa.org.
 
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.