Housing Incentive Fund

North Dakota legislative
Real housing solutions require legislative action, community investments and private industry commitment.
a construction worker holding a notepad
Economic development can occur when housing is affordable to the workforce.
a main street in a small North Dakota town
Rehabilitation of existing housing reduces costs and provides tenants with ready access to established services.
an older couple embracing
Low-income and 65+ households are the largest growing populations across the state.
North Dakota state capitol building
Housing stability affects bottom line of multiple state agencies.
a police officer standing in front of an apartment complex

Background: State Gap Financing

The Housing Incentive Fund (HIF) is a state-funded gap financing program used with federal and private dollars to create affordable multifamily housing in urban and rural communities. The North Dakota Housing Finance Agency (NDHFA) administers the program on behalf of the state of North Dakota.  Leveraged as an upfront, one-time investment, HIF ensures rental homes will be affordable for a minimum of 15 years. On average, HIF covers 20% of the gap financing needed to move a project forward.

The North Dakota Legislative Assembly created HIF in 2011. Legislators approved $13.75 million in funding during the 68th legislative session and single-family activities became eligible under HIF. The state’s $117 million investment in HIF has resulted in 98 unique projects, 3,331 affordable rental homes and 19 single-family homes as of the end of 2024. 

People: Everyone Deserves a Safe and Affordable Place to Call Home

A home is considered to be affordable when 30% or less of earned income is spent on housing expenses. Households paying more than 30% are considered housing cost burdened. For some North Dakotans, a strong work ethic is not enough to be able to secure safe and affordable housing.

Reality of North Dakotan’s Housing-Cost Burden

gross rent increase during the past decade – twice the rate of inflation
0 %
of all renter households are burdened by housing costs
0 %
of renters ages 65 and older are burdened by housing costs
0 %
of all rental units are affordable to extremely low-income households
0 %

Successful Projects: HIF Helps Communities Thrive

Anyone can live in HIF-funded housing as long as they meet certain income requirements. Some properties target a specific population such as persons over the age of 55, individuals who are chronically homeless or survivors of domestic violence.

an apartment complex in Bismarck, ND
an apartment building in Rugby, ND
an apartment complex in West Fargo, ND
homes located in New Rockford, ND
an apartment building located in Fargo, ND
a gray and white apartment building located in Hazen, ND
a rendering of a development located in Grand Forks, ND

We Need All Forms of Housing: Types of Housing

North Dakota communities have unique housing needs that vary based on economic growth, job openings and unemployment rates, demographic trends, and availability of existing housing. Housing at different price points creates a healthy community environment.

Need for Rehabilitation: Risk of Losing Affordable Housing

Currently, there are only 951 income- and rent-restricted housing units affordable to extremely low-income households. Many of the properties in these housing programs have been in service for decades and are in need of repair and/or rehabilitation.

HIF provides a means of rehabilitating and preserving older, affordable housing units to ensure affordable rents for an additional 15 years.

Supporting Documentation

Ask a Researcher, 2024 Statewide Housing Needs Assessment

2020-2025 Statewide Housing Needs Assessment

Century Code

2023 HIF Legislation

HIF Timeline

Rural Housing Task Force Recommendation

Addressing the Critical Housing Shortage in Rural North Dakota

North Dakota Housing Initiative