DICKINSON, ND – More than 100 years after it was originally constructed, a south Dickinson building has been converted to 10 units of affordable housing.
“When we first purchased the property, there wasn’t a need in Dickinson for apartments or office space, so we used the building for storage,” said Kris Fehr, managing partner at AK Investments, LLP. “When I learned about the Housing Incentive Fund, I knew it was time to make improvements and help address our community’s affordable housing shortage.”
AK Investments received $410,852 from the Housing Incentive Fund (HIF) to reserve all of the units in the South Main Apartments for income-qualified households. Administered by the North Dakota Housing Finance Agency (NDHFA), HIF provides low-cost financing to developers of affordable rental housing.
“We are grateful for the support we received from NDHFA, the City of Dickinson and from Stark County Development as we truly would not have been able to do the work without it,” said Fehr. “And, I’d like to specifically recognize Marathon Oil Corporation and American Bank Center for their roles in the redevelopment.”
A portion of a $3 million HIF contribution from the oil company was directed to affordable housing development in Dickinson. American Bank Center also contributed HIF dollars that supported the project, and the bank financed the redevelopment. Individuals and businesses that contribute to the fund receive a dollar-for-dollar state tax credit. Contributions can be targeted to a specific project or community.
Located at 161 South Main Street, the newly renovated building includes 8 one-bedroom and 2 two-bedroom units. One of the apartments is restricted to a household earning no more than 50 percent of Area Median Income (AMI) and the remaining nine units are restricted to households that earn less than 140 percent of AMI. The project was completed in September 2013 and the first tenants will move in in October.
“The need for affordable housing in North Dakota is ongoing,” said Jolene Kline, NDHFA acting director. “By contributing to HIF, businesses and individuals help address the need and have a say in how their tax dollars are spent.”
The South Main Apartments was one of 24 projects selected for a HIF allocation during 2011/12 program funding rounds. The state legislature reauthorized HIF during the 2013 session, giving NDHFA a $15.4 million general fund appropriation and the authority to issue up to $20 million in state tax credits to further capitalized the program. Thus far, NDHFA has made conditional commitments to 18 new HIF projects. The agency anticipates that the balance of the fund will be exhausted this fall.
More information about HIF is available online at www.ndhousingincentivefund.org.
The Industrial Commission of North Dakota, consisting of Governor Jack Dalrymple as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees NDHFA and BND.