BISMARCK, ND – The North Dakota Housing Finance Agency (NDHFA) announced today that six projects have received funding commitments to support the development of more than 600 affordable housing units statewide.
“Our agency received applications for 23 projects, utilizing at least one of the four funding sources, with requests exceeding available funds by $29 million,” said Brandon Dettlaff NDHFA’s executive director.
NDHFA administers the federal Low Income Housing Tax Credit (LIHTC), HOME Investment Partnerships (HOME) and National Housing Trust Fund (HTF) programs, and the state’s Housing Incentive Fund (HIF).
About the Projects
A partnership between Fargo Housing Redevelopment Authority (FHRA) and Blueline Development, Inc. was awarded $1.3 million in tax credits that will provide an estimated $11 million in project equity and $1 million from HIF for 14-4 Apartments. This Fargo project will demolish existing public housing to construct a 65-unit complex for individuals and families. FHRA is also committing project-based vouchers to the units to further affordability for tenants. The total project cost is $17.3 million.
Beyond Shelter, Inc. (BSI) was awarded $1.1 million in tax credits that will provide an estimated $9.2 million in project equity, $3.1 million from the Housing Trust Fund, $711,372 from HOME, and $1 million from HIF for Harvest Acres in Fargo, creating 39 new units for seniors. The total project cost is $15.6 million.
BSI was also awarded $1.4 million in tax credits that will provide an estimated $11 million in project equity, $1.6 million from HOME, and $1 million from HIF for Buffalo Manor Apartments in Jamestown, a new 39-unit complex for seniors. Total project cost is $16 million.
Annex Group was awarded $4.3 million in 4% tax credits that will provide an estimated $35 million in project equity and $3 million from HIF for the construction of Central at the Horizon, a 262-unit development located in downtown Fargo to provide general workforce housing. Total project cost is $93 million.
Through HIF, Dakota Commercial was awarded $1.5 million for Kingsview Apartments in Grand Forks, a 45-unit 1- and 2-bedroom apartment complex for individuals and families. Total project cost is $12.4 million.
Dakota Commercial was also awarded $1.6 million in 4% tax credits providing an estimated $12 million in project equity along with and $5.4 million from HIF to support the construction of Brookstone Apartments in Grand Forks, 160 new units for individuals and families. Total project cost is $33 million.
About the Programs
LIHTC provides an indirect federal subsidy used to finance the construction or rehabilitation of rental housing for lower-income households. The HTF’s purpose is to increase and preserve the supply of housing for extremely low-income households, including families experiencing homelessness. HOME helps communities address their most pressing housing challenges. In North Dakota, HOME is used to provide homeownership assistance and rental production/assistance for low-income households. And North Dakota’s HIF helps to ensure project feasibility, filling gaps in financing to increase affordability and supporting the development of housing statewide.
The application process for all of NDHFA’s multifamily housing programs is competitive with the top scoring projects receiving awards. Applicants must provide evidence that there is a need for the proposed housing, that the construction costs are reasonable, and that the project would not be financially feasible without the public subsidy. Projects that receive federal funds to support their development are required to be affordable for a period of 30 years.
More information about the multifamily housing programs administered by NDHFA is available online at ndhousing.nd.gov.
A self-supporting and mission-driven agency, NDHFA is dedicated to making housing affordable for all North Dakotans. The North Dakota Industrial Commission, consisting of Governor Kelly Armstrong as chairman, Agriculture Commissioner Doug Goehring and Attorney General Drew Wrigley, oversees the agency.