BISMARCK, ND – The North Dakota Industrial Commission announced the allocation of funds to affordable housing projects by the North Dakota Housing Finance Agency (NDHFA).
“The funding commitments made by NDHFA support the development of projects in communities large and small that will provide safe and affordable housing for our state’s most vulnerable households,” said Industrial Commission members in a joint statement. The commission, chaired by Gov. Doug Burgum, with Agriculture Commissioner Doug Goehring and Attorney General Drew H. Wrigley, oversees the agency.
NDHFA administers the federal Low Income Housing Tax Credit (LIHTC), HOME Investment Partnerships (HOME), and National Housing Trust Fund (HTF) programs as well as the state Housing Incentive Fund (HIF). The awarded funds will support the development or preservation of 279 housing units statewide.
Successful Application Summary
The Gardenette in Jamestown is a multiphase rehabilitation project led by Stride Development PBC. The $48 million project comprises three phases which will acquire and rehabilitate a 168-single bedroom unit development into 150 units providing one-, two- and three-bedroom options. Phase 1 secured $1.1 million of 9% LIHTCs. Phase 2 received $1,082,900 of 9% LIHTCs, and Phase 3 was awarded $1,032,000 of 4% LIHTCs and $3 million in HIF dollars.
Avalon at Mandan, a $9.4 million new construction project led by Domera Development LLC, and CUBIT Development Group LLC, involves the construction of a 25-unit, two-story rowhome catering to households with children. This infill development received $975,000 in 9% LIHTCs.
NEX Senior in Fargo is a 40-unit senior community with one- and two-bedroom units, onsite management, and integrated supportive services. This infill project will be developed by Commonwealth Development and was awarded $1.1 million in 9% LIHTCs, $1,558,248 in HOME, and $2,852,413.21 in HTF funds.
Dakota Apartments is an eight-unit, two-story new construction apartment building in Cavalier, to be developed by Red River Community Housing Development Organization. The $3,075,000 project was awarded $1.7 million in HIF funding.
As part of this funding round, NDHFA allocated an additional $450,000 in HOME and $700,000 in HIF funds to Affordable Housing Developers Inc. for Jewel City 1 Rehab in Rolla, $661,702 in HOME funding to CommunityWorks ND for Boulevard Avenue Apartments in Bismarck, as well as $300,000 in HIF funding to Community Homes for Washington Court Apartments in Bismarck, to complete their respective projects.
“While development costs have risen, the demand for affordable housing has not slowed. It underscores the urgency of NDHFA’s mission to ensure that affordable housing remains accessible to those who call North Dakota home,” said Dave Flohr, executive director of NDHFA.
About the Programs
LIHTC offers a dollar-for-dollar reduction in a taxpayer’s federal income tax liability in return for making a long-term investment in affordable rental housing. The program has two components: competitive 9% credits and non-competitive 4% credits. HTF and HOME are federally funded through HUD. The HTF’s purpose is to increase and preserve the supply of housing for extremely low-income households including families experiencing homelessness. HOME helps states and communities address their most pressing housing challenges. In North Dakota, the program is used to provide homeownership assistance and support rental production for low-income households. HIF is a state-funded gap financing program used to support the development of affordable multifamily housing for low-to moderate-wage workers, the state’s aging population, individuals with disabilities, and persons at-risk of homelessness.
The application process for all NDHFA housing development programs is competitive with the top scoring projects receiving awards. Annually, the funding requests received by the agency exceed available funding.
NDHFA is a self-supporting and mission-driven state agency dedicated to making housing affordable for all North Dakotans. More information about the housing programs administered by NDHFA is available online at ndhfa.org.