The North Dakota Housing Finance Agency (NDHFA) has pledged the balance of its available Housing Incentive Fund (HIF) to three developments.
In Kulm, $112,500 has been pledged to Bruce and Emery Lindgren to rehabilitate an existing uninhabitable structure into Bel Tower Apartments. The total development cost for the six units is $501,875.
In Mandan, $584,192 will go to Yegen Development Corp. to rehabilitate an existing uninhabitable structure into Great Plains Apartments. The 58-unit project will cost $4.8 million.
In Parshall, $400,000 has been pledged to Highlands of Parshall, LLC, to construct The Highlands of Parshall. There will be 45 units at the $5.5 million project.
In all, 26 developments have been selected to receive HIF funds.
To ensure these developments are able to move forward, an additional $4.5 million is needed to fully capitalize the fund by the year’s end. Any individual or business with a state tax liability can contribute to HIF and in return receive a dollar-for-dollar state tax credit. In addition, the taxpayer can direct their contribution to a specific project or community, said the Industrial Commission of North Dakota, which oversees the housing finance agency.
NDHFA is authorized to issue tax credit certificates on a first-come, first-served basis until the end of the year or the $15 million maximum threshold is reached. Developers must have all their financing in place before they can access state funds and begin construction. Ten projects, including the three most recently selected, are still raising HIF contributions.
“By contributing to HIF, North Dakotans can help create affordable housing where it’s needed most,” said Mike Anderson, NDHFA executive director, in a statement. “To date, NDHFA has received $10.5 million to support these developments.”
Authorized by the state Legislature last year, the HIF aims to incentivize private investment into affordable housing development in difficult-to-develop areas. Much of the focus has been on growing oil-industry regions and disaster-impacted areas.