North Dakota Housing Finance Agency

Federal Recapture Tax

The Federal Recapture Tax applies to households that purchase a home using mortgage revenue bond financed programs like the North Dakota Housing Finance Agency’s (NDHFA) FirstHome™ program .

For borrowers with loans closed on or after October 1, 2006, NDHFA will reimburse the household for the actual amount of any recapture tax paid to the Internal Revenue Service (IRS). By offering this reimbursement, first-time buyers are able to make a home purchase with the confidence that if they are subject to a recapture tax, it will not become a financial burden.

For more information on recapture tax reimbursement, contact NDHFA's Servicing Department. To apply for reimbursement, complete a Recapture Tax Reimbursement form (fillable PDF).

NDHFA borrowers that purchased a home prior to October 1, 2006, are solely responsible for repayment of any recapture tax owed when their home is sold. They are not eligible for the reimbursement program.

For more information on the Federal Recapture Tax, consult an attorney, a tax advisor or the Taxpayer Assistance Department of the IRS, www.irs.gov.

North Dakota Housing Finance Agency

2624 Vermont Avenue, PO Box 1535, Bismarck, ND 58502-1535

Bismarck Main Office -- (701) 328-8080 | ND Toll Free (800) 292-8621 | Fax (701) 328-8090 | TTY (800) 366-6888

Equal Housing Opportunity