Housing Incentive Fund

Real housing solutions require legislative action, community investments and private industry commitment.
Economic development can occur when housing is affordable to the workforce.
Rehabilitation of existing housing reduces costs and provides tenants with ready access to established services.
Low-income and 65+ households are the largest growing populations across the state.
Housing stability affects bottom line of multiple state agencies.
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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. The state’s $105 million investment in HIF has resulted in 88 unique projects and 3,034 affordable rental homes.

Legislators approved $13.75 million in funding during the 68th legislative session.

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

0 %
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

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.

CenturyCottages
Courtyard
GraceGarden
Meadowlarkhomes
MontereyBrighton
PioneerHomes
PureDev
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Watch Video

Learn how a stable home made a difference in the lives of two Edwinton Place tenants.

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

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