Over the 13 years that NDHFA’s Housing Incentive Fund (HIF) has been in existence, amazing work has been accomplished. We have helped our communities create more than 3,034 housing units which serve individuals and families from all walks of life. The projects have revitalized neighborhoods by transforming blighted and under-utilized properties and created new opportunities for people of all income levels to find a place to call home.
Unlike federal programs with rigid parameters, HIF is a highly flexible funding source. There are a few statutory set asides with HIF, but the program’s allocation strategy was developed by Agency staff to meet the unique housing needs of North Dakota.
Developers quickly understood what a valuable tool HIF could be. I don’t know that we’ve had a funding round where the number of applications wasn’t well above the amount of funds we had available. It has been a crucial gap-filler that has made all the difference in enabling projects to move forward.
During the last legislative session, HIF was expanded to include single-family activities. An application round opened for single-family projects in March and funds were allocated within a month. One of those projects is a pilot program created by the Red River Community Housing Development Organization geared at supporting a slow but steady stream of new construction in underserved rural communities.
The first builds, located in Lakota, are slab on grade, three-bedroom, two-bathroom homes, with an attached two stall garage. They have an open floor plan, breakfast nook, a slab patio, and kitchen island. Construction financing came from the State Bank of Lakota, First United Bank and the HIF single-family pilot program. Both homes have purchase agreements in place and are set to close later this fall. Similar homes in Larimore are expected to be completed in early 2025.
The hope is that these builds will provide much-needed new housing in these smaller communities, help employers who are trying to recruit workers and boost a stagnant housing market.
This is just another great example of what HIF can do – provide practical and flexible financing to create all types of affordable housing in all types of communities.
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