2023-25 Budget 

What is driving North Dakota Housing Finance Agency’s (NDHFA) 2023-25 budget increases and FTE requests?

Demand from low- to moderate-income homebuyers drives mortgage loan production.
Reinvestment of agency earnings into grant programs that improve housing stability.
Compliance requirements increasing due to mortgage, investment, bond, state and federal regulations.
Cost to administer state and federal programs.
Alignment of mortgage IT systems and business processes to meet citizen and industry expectations.

2021-2023 and Proposed 2023-2025 Budget

NDHFA is a self-supporting and mission-driven agency dedicated to making housing affordable for all North Dakotans. All operational expenditures are covered by mortgage servicing revenues and administration of state and federal programs.

The proposed budget aligns future and on-going business decisions capitalizing on leadership and organizational strengths while also evaluating personnel and financial resources to manage expectations and desired incomes.

*Proposed Department of Commerce program transfer

State General Funds – Funded Programs

NDHFA administers the Housing Incentive Fund (HIF), which is funded with general fund dollars dependent upon legislative approval.

  • 2021 legislature authorized $9.5 million for HIF. Currently, no HIF funding remains.
  • Proposed 2023 legislation requests $40 million for HIF, which OMB requested be included in NDHFA’s proposed 2023-2025 budget.

ND Department of Commerce is proposing the transfer of the ND Homeless Grant and the Emergency Solutions Grant to NDHFA.

  • The ND Homeless Grant is funded through the general fund.
  • The Emergency Solutions Grant is a federal program with matching state funds authorized through the general fund.
  • No FTEs are included in the request to transfer.

Request for Six FTEs

There is an affordable housing shortage statewide. NDHFA and our stakeholders are working to find solutions to address affordability gaps, preserve aging stock, and to construct new housing that meets our diverse demographic needs. Addressing these challenges requires legislative authority for the Agency to manage the associated risks and leveraging financial resources while executing our affordable housing finance role.

Reinvestments for Housing Stability and Financial Security

NDHFA utilizes earning from various income sources to provide Agency-funded grant programs that allow individuals to secure housing and live independently and to address local housing needs. These programs reduce the costs of other state-funded programs for low-income households and help to ensure that the housing development resources are utilized to address true community needs.

Current Agency-Funded Programs

Based on historical budget outlooks, NDHFA has the opportunity to reinvest additional resources into Agency funded grant programs

New Agency-Funded Program

NDHFA has the opportunity to leverage a 2009 Indenture to fund the new Loan Guaranty fund (LGF) and eliminate the need for mandated government-issued mortgage insurance.


  • Removal of government-issued mortgage insurance requirements result in:
    • Lower fees for enrolled borrowers
    • Staff and lender time savings
  • Generates additional revenue for Agency-supported programs

Additional Resources

NDHFA Budget Legislation
NDHFA Website
Housing Incentive Fund
Strategic Plan 2020-2025
Dept. of Commerce Budget Legislation (ND Homeless Grant/Emergency Solutions Grant transfer)

For more information contact:
Dave Flohr, Executive Director

NDHFA Mission and Values

NDHFA is a self-supporting and mission-driven state agency dedicated to making housing affordable for all North Dakotans. We offer affordable home financing to low- to moderate-income families, and help to ensure the continued availability of suitable rental housing for households of modest means while focusing on the overall housing needs of our state’s growing communities.


We are knowledgeable, passionate and committed to making continuous improvements providing the best service to current and future clients. 


We hold ourselves accountable as industry leaders and collaborate with our housing partners to enhance communication and innovation. 


We lead with trust and honesty and pledge to treat those we serve with respect and dignity. 


We appreciate the perspective of others and genuinely care about our clients, co-workers and partners in housing.