The North Dakota Housing Finance Agency (NDHFA) is again ready to address the state’s need for affordable housing through theHousing Incentive Fund (HIF).
An affordable housing development program, HIF was used to create 669 new rental units in North Dakota in the last two years. The program is back up and running. NDHFA is accepting development applications and needs to raise $20 million to fully capitalize the fund.
“Regional and community banks really stepped up last time, supporting projects across the state,” Jolene Kline, NDHFA’s acting executive director. Twenty financial institutions contributed $3.8 million in 2011-2012.
A change in the tax structure for financial institutions made by the Legislative Assembly means that a HIF tax credit can now be applied to that financial institution’s entire tax liability – rather than the 3/13th state share under the old program.
In exchange for contributions, banks will again receive dollar-for-dollar tax credits, and they can direct those dollars to specific project or communities.
Contributions may also qualify for a federal income tax deduction and as CRA (consult tax and compliance professionals and learn more online at www.NDHousingIncentiveFund.org).
Contributions must be received by the fund before the end of the tax year, but contributors don’t need to wait to make a contribution. Taxpayers who make estimated quarterly state tax payments can adjust the amount of their estimated payments to account for the anticipated reduced tax liability that will result from applying the HIF tax credit on the state tax return at the end of the tax year. And now is a great time to contribute so projects can take advantage of the 2013 construction season.
“Developer interest in the fund is high again this year and adequate financial support will be required before HIF projects can break ground,” said Kline. “More projects are under review and they need your support to begin construction.”
HIF was reauthorized by the 63rd Legislative Assembly and the tax credits were supplemented by a $15.4 million general fund appropriation to help get projects underway faster. Contributions are required to round out project funding.
More information on HIF is available online atwww.NDHousingIncentiveFund.org. Questions regarding the fund can be directed to Kline or Bill Hourigan at (800) 292-8621, (701) 328-8080 or email@example.com.