Tag Archives: Low Income Housing Tax Credit

Housing Finance Agency Awards Development Assistance

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Rendering of Edwinton Place in Bismarck.

BISMARCK, N.D. – North Dakota’s most vulnerable households will benefit from affordable housing development assistance project awards made by North Dakota Housing Finance Agency (NDHFA).

Seven developers received funding commitments from NDHFA in November. The awards were made through three federal programs – $3.16 million in tax credit authority through the Low Income Housing Tax Credit (LIHTC) program, $2.72 million from the National Housing Trust Fund (HTF) and $460,000 from the Neighborhood Stabilization Program (NSP) – and $2.65 million from the state’s Housing Incentive Fund (HIF).

“The projects that North Dakota Housing Finance Agency selected support the state’s efforts to address behavioral health and criminal justice issues while ensuring North Dakota’s aging and disabled households and lower-wage workers have safe and affordable housing as well,” said Jolene Kline, NDHFA executive director. “By ensuring that our most vulnerable state residents have a safe and affordable place to call home, we reduce the overall burden placed on the communities and our state.”

About the Projects

Edwinton Place in Bismarck, a “Housing First” project spearheaded by Burleigh County Housing Authority, was awarded $813,000 in LIHTCs. NDHFA also made commitments of $1,026,147 from the HTF, $500,000 from HIF and $460,000 from NSP. It will provide permanent supportive housing for 40 individuals coming directly out of homelessness.

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A rendering of the Edge Artist Flats in Fargo.

The Edge Artist Flats in Fargo, a Commonwealth Development Corp. project, received $740,000 in LIHTCs and $1,369,263 from the HTF. The 42-unit, family-friendly development will provide supportive services to its disabled tenants and to households at risk of homelessness.

HomeField 2 Apartments in Fargo is the second phase of a Beyond Shelter Inc. (BSI) development. NDHFA awarded $504,437 in LIHTCs to support the development of 39 senior apartments including eight accessible units.

Ellendale Apartments, an Affordable Housing Developers Inc. acquisition and rehab project, was awarded $755,000 from HIF to support the redevelopment of a 32-unit property including accessibility improvements that improve the livability of the property for the tenants with disabilities.

Pure Downtown in Grand Forks, a project of Dakota Commercial, received $1.1 million conditional commitment through HIF to reserve 25 of its 50 apartments for low- to moderate-income households.

Dakota Heights in West Fargo, a Southhill Properties LLC project, received $425,100 in LIHTCs. The senior housing project will have a vacancy preference for elderly veterans with Veterans Affairs Supportive Housing vouchers. Six of the 30 units will be reserved as permanent supportive housing for individuals with physical and intellectual disabilities.

Grace Garden in West Fargo, a joint venture of the YWCA of Cass Clay and BSI, received $672,500 in LIHTCs. NDHFA also made a commitment of $325,549 from the HTF and $500,000 from HIF. The supportive housing project will serve 30 households at risk of homelessness, many of whom are transitioning from domestic violence.

About the Programs

“North Dakota Housing Finance Agency received 27 total applications for assistance from 14 projects during our fall 2017 funding rounds. The greatest demand was for support from the LIHTC and the HTF programs, more than twice what the programs could provide,” said Kline.

LIHTC provides an indirect federal subsidy used to finance the construction or rehabilitation of rental housing for lower-income households. The purpose of the HTF is to increase and preserve the supply of housing for extremely low-income households including homeless families. NSP supports the acquisition of foreclosed, abandoned or vacant properties in targeted areas for redevelopment into affordable rental housing. And HIF, the only state-funded program, strengthens communities by supporting the development or preservation of rental housing for essential service workers and low- to moderate-income households.

All of NDHFA’s development programs have allocation plans that are reviewed annually to ensure that the projects that receive financial awards are addressing the state’s greatest housing needs. The application process for each program is competitive with the top scoring projects receiving the awards. Each applicant must provide evidence that there is a need for the type of housing proposed, that the community supports the development, and that construction costs are reasonable. The period of affordability for the projects supported with federal funds is 30 years, HIF’s is 20 years.

About NDHFA

A public financial institution dedicated to making housing affordable for all North Dakotans, NDHFA is overseen by the North Dakota Industrial Commission which consists of Governor Doug Burgum, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring. More information about the programs administered by NDHFA and the projects awarded development assistance is available online at www.ndhfa.org.

Construction Begins on Permanent Housing for Chronically Homeless Individuals

GRAND FORKS, ND – Grand Forks Homes Inc. broke ground today on LaGrave on First, a project that will provide affordable housing and supportive services for individuals who have experienced chronic homelessness in the community.

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LaGrave on First development partners, Grand Forks Housing Authority and Beyond Shelter, Inc. More images from the event are posted on NDHFA’s Facebook page.

“To end homelessness, the first step is to provide permanent housing,” said Terry Hanson, Grand Forks Housing Authority executive director. LaGrave will employ an approach called ‘Housing First’ that prioritizes the provision of housing, then provides services for residents to address their individual issues.

The project has strong support from the City of Grand Forks, which first identified the community’s need for Permanent Supportive Housing in its 2008 plan to end long-term homelessness. The city donated the land on which LaGrave will be built, and committed $335,000 in HOME program funds to the development.

LaGrave also has the backing of North Dakota Housing Finance Agency. The state agency provided most of the $8.7 million project’s financing by allocating federal Low Income Housing Tax Credits that brought almost $7 million in equity to the project. NDHFA also awarded $772,514 to LaGrave from the National Housing Trust Fund.

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GFHA received $7.7 million from NDHFA to support the development of LaGrave. NDHFA Executive Director Jolene Kline addresses the ground breaking attendees.

“Our mission is to ensure that all North Dakotans have safe and affordable housing,” said Jolene Kline, NDHFA executive director. Kline also serves as the chair of the state’s Interagency Council on Homelessness.

Beyond Shelter Inc., a nonprofit developer based in Fargo, ND, is the housing authority’s development partner in the project. “We are pleased to be able to work with the Grand Forks Housing Authority, offering our expertise to address this housing shortfall in the Grand Forks community,” said BSI CEO Dan Madler. LaGrave is BSI’s sixth PSH project.

Additional financial assistance is provided by the Federal Home Loan Bank of Des Moines, $500,000 from its Affordable Housing Program; a $150,000 grant from the Otto Bremer Trust; and the Turtle Mountain Housing Authority contributed $10,000 in exchange for a preference for its tribal members for five of the housing units.

The four-story building will be constructed in downtown Grand Forks on a site that was a city skate park adjacent to the police department. It will have 42 one-bedroom/one-bath apartments with services provided on-site and 24/7 staffing. Nine of the units will be fully accessible. GFHA will manage the property.

Nonprofit Celebrates 1,000th Affordable Housing Unit

FARGO, ND – A grand opening at HomeField Apartments, a new senior complex in south Fargo, provided an opportunity on Tuesday to not only celebrate the successful completion of a project, it was also an opportunity to reflect on the accomplishments of Beyond Shelter Inc., a nonprofit developer that has taken on some of North Dakota’s greatest housing challenges.

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FMWF Chamber congratulates Beyond Shelter on the successful completion of HomeField Apartments.

The Fargo Housing and Redevelopment Authority started BSI in 1999, providing it with a $5,000 operating loan and the support of its staff.  Since that time, BSI has grown into a fully independent 501(c)(3) nonprofit organization with a staff of eight. With the opening of HomeField Apartments and a ground breaking on the LaGrave on First project in Grand Forks in September, BSI will have surpassed a milestone 1,000 units of affordable housing developed.

While BSI strives to address the housing needs of all lower income individuals and families, the nonprofit has developed several noteworthy projects across the state. Included are six permanent supportive housing projects for those who have experienced long-term homelessness, and nine projects targeted to lower-wage workers and law enforcement personnel in energy-impacted communities during the height of the energy boom in Western North Dakota.

“Beyond Shelter Inc. was created to dig deeper and develop housing targeted to the lowest income households, the people whose needs are overlooked,” Bev Rohde, a former FHRA board member and a still-serving original BSI board member said of the nonprofit’s formation. “We are excited to celebrate this 1,000 plus unit milestone, but there is more work to do in Fargo and around the state as affordable housing continues to be out of reach for many individuals and families.”

In recent years, BSI has focused its attention on North Dakota’s fastest growing population, elderly households with limited resources. HomeField is the fourth senior project the organization has developed in Fargo in four years. The total cost of developing the 39-unit property was $6.87 million. If funding can be secured, two more buildings will be added at the site over the next two years.

“I am thankful every day that organizations like Beyond Shelter exist, ensuring the most vulnerable members of our communities have a safe place to call home,” said Jolene Kline, North Dakota Housing Finance Agency executive director. The state agency finances many of BSI’s North Dakota projects. It awarded $589,153 in federal Low Income Housing Tax Credits to HomeField, which through syndication by Wells Fargo Affordable Housing CDC, brought $6.18 million in equity to the project.

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More images of HomeField and the celebratory event are available on NDHFA’s Facebook page.

The City of Fargo committed $165,000 in HOME funds and $150,000 in CDBG funding to help buy down the cost of the land on which the property is located. “The City has identified affordable senior housing as a critical need, especially housing for extremely low-income seniors,” said Dan Madler, BSI’s CEO.

HomeField is located at 4245 28th Ave S, next to Anderson Park in South Fargo. All the units are reserved for income-qualified households age 55 and older. There are 33 one-bedroom and six two-bedroom apartments. Depending on household size and income, the units rent for $388 to $696 per month plus utilities. An individual earning $16,530 or less would qualify to rent a one-bedroom apartment for $370.

MetroPlains Management expects the property to be completely leased up by the end of August. Individuals who would like to learn more about affordable housing available in the Fargo area can call the property manager at (701) 232-1887. Information is also available online at www.metroplains.com. 

Managing LIHTC Compliance Training Registration Open

BISMARCK, ND – Registration is now open for Managing Low Income Housing Tax Credit (LIHTC) Compliance, an in-depth training geared specifically to tenant file compliance.

Hosted by North Dakota Housing Finance Agency and lead by Spectrum Enterprises, the training will be held on Oct. 25, 2017, at the Ramkota Hotel, 800 S 3rd Street in Bismarck, ND.
Spectrum’s Jennifer Borland described the one-day training, “We will discuss income and asset definitions, verification requirements, calculations for income and assets, preparing for a compliance review, tenant fraud, student status, etc.”

All registrants will receive a course manual. Attendees that complete the training will be awarded six continuing education hours good toward any nationally recognized LIHTC designation (C3P, HCCP, COS, etc.). No exam or certification will be offered in conjunction with the training.

“In addition to the federal program requirements, the course will be customized to highlight NDHFA’s policies and procedures,” said Jennifer Henderson, the agency’s planning and housing development division director.

Pre-registration is required. The training fee on or before October 11, 2017, is $150. After the 11th, the fee is $175. Registration will close on Oct. 15. Additional information is available online or by contacting NDHFA at (800) 292-8621 or hfainfo@nd.gov.

Co-director of investor consulting services, education and training development, Borland is responsible for developing Spectrum’s training services. She has a background in conventional and affordable housing property management, and first served with the company as a senior compliance analyst, performing file pre-approvals and annual compliance reviews for management and investment clients, and as a compliance monitor for state monitoring contracts. Borland has spoken at seminars and conducted LIHTC compliance trainings nationwide. She is C12P, COS, STAR, and TaCCs certified.

Spectrum Enterprises, Inc. is a growing firm specializing in compliance oversight for the LIHTC program. With a national roster of clients includes state housing agencies, leading investors, syndicators, developers, asset management, and property management companies, Spectrum’s services include document analysis, tenant file reviews, application pre-approvals, site inspections and training.

NDHFA is a self-supporting state agency dedicated to making housing affordable for all North Dakotans. The Industrial Commission of North Dakota, consisting of Gov. Doug Burgum, as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, oversees the agency.

Unique Senior Apartments Open in Downtown Bismarck

BISMARCK, ND – MetroPlains LLC opened the doors to a unique senior apartment complex today. Located in downtown Bismarck, the four-story building offers very desirable amenities and it’s affordable.

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Lt. Governor Sanford (center) congratulates MetroPlains on the completion of 100 West Main.

100 West Main has a four-season porch, lounge, exercise room, community room, and on-site chapel. A community manager organizes activities and supportive services are offered that allow tenants to age in place. The apartments all have energy-efficient lighting and appliances, and some have balconettes. The building is within walking distance of churches and restaurants, retail, financial and medical services, and it offers easy access to public transportation.

“Walkable downtowns that offer a variety of retail, dining and entertainment options, as well as housing for all income levels, are an important element of the Main Street Initiative,” Lt. Gov. Brent Sanford said at the celebratory event. “This property is a great example of public-private partnership creating diverse housing opportunities that help contribute to a healthy, vibrant community.”

Sanford attended the event on behalf of the North Dakota Industrial Commission. The commission, consisting of Gov. Doug Burgum as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees North Dakota Housing Finance Agency.

“Affordable housing for seniors with limited incomes is a much-needed resource in Bismarck,” said NDHFA Executive Director Jolene Kline. “100 West Main will be a great addition to the city’s core.”

NDHFA allocated $600,000 from the state’s Housing Incentive Fund to the project and awarded $506,097 in federal Low Income Housing Tax Credits. The credits brought $5.11 million in equity to the project through the syndication by Wells Fargo Affordable Housing Community Development Corp. Wells Fargo also provided the project’s construction financing.

Additional development support was provided by the City of Bismarck, Bank of North Dakota, and the Lewis and Clark Development Group (formerly CommunityWorks North Dakota). Security First Bank provided the project’s pre-development and permanent financing.

“We are very appreciative of all of the support provided by our project partners,” said Rob McCready, MetroPlains Principal. The total cost of developing the property was $6.56 million.

“To have an opportunity to provide affordable housing for seniors in a location which contributes positively to the diversity and vitality of downtown Bismarck is extremely gratifying,” said Randy Schold, MetroPlains Principal.

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More photographs of the property are available on our Facebook page.

All of the apartments at 100 West Main are reserved for income-qualified households age 55 and older. There are 18 one-bedroom and 12 two-bedroom units. Five units are fully accessible. Depending on household size and income, the units rent for $370 to $806 per month plus utilities. An individual earning $17,370 or less would qualify to rent a one-bedroom apartment for $370.

Individuals who would like to learn more about 100 West Main can contact MetroPlains Management at (701) 751-9951. Information is also available online at www.metroplains.com.

MetroPlains partners with individuals, organizations and local governments in order to provide exceptional developments which meet the diverse housing goals of communities. MetroPlains Management provides property management services to promote a superior experience for the residents.

NDHFA is a self-supporting state agency dedicated to making housing affordable for all North Dakotans.

Federal Affordable Housing Development Resources Available

BISMARCK, N.D. – North Dakota Housing Finance Agency is currently accepting applications for two federal affordable housing development programs.

HTFLIHTCAPPS2“Through the Low Income Housing Tax Credit and Housing Trust Fund programs, we are able to help address the housing needs of our state’s lowest income residents, ensuring these vulnerable individuals and families have a safe place to call home,” said Jolene Kline, NDHFA executive director.

LIHTCs provide an incentive for the production or rehabilitation of low-income housing. Developers awarded credits sell them to raise equity capital from investors, reducing the debt required to produce, preserve or rehabilitate a property. The reduced costs make it possible for the developer to rent to households earning 60 percent or less than Area Median Income.

The purpose of the HTF is to increase and preserve the supply of housing for extremely low-income households, those earning less than 30 percent of AMI, including homeless families. These program dollars can be used for the production, preservation, rehabilitation and operation of a property. HTF financial awards are structured as forgivable zero-interest loans.

Eligible recipients of these program resources include units of local, state and tribal government; local and tribal housing authorities; community action agencies; regional planning councils; nonprofit organizations; and for-profit developers.

The program plans and applications are available online at www.ndhfa.org or by contacting NDHFA at (800) 292-8621. The deadline for submission is Sept. 29, 2017.

NDHFA is a public financial institution dedicated to making housing affordable for all North Dakotans. The North Dakota Industrial Commission, consisting of Governor Doug Burgum as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, oversees the agency.

Dickinson Project Awarded Redevelopment Assistance

HIF Invest in Your CommunityBISMARCK, ND – North Dakota Housing Finance Agency recently awarded $315,000 through the state’s Housing Incentive Fund to Mountain Plains Equity Group and Affordable Housing Developers Inc. The assistance provided supports the acquisition and rehabilitation of Dacotah Ridge Apartments, a 24-unit rental property in Dickinson, ND, that is occupied primarily by elderly and disabled households.

“Preserving affordable housing options for those who need it most is one of our highest priorities with the Housing Incentive Fund,” said Jolene Kline, NDHFA executive director. “We are pleased that this valuable housing resource will continue to serve North Dakota for years to come.”

Last November, NDHFA awarded $321,000 in federal tax credit authority to Dacotah Ridge through the Low Income Housing Tax Credit program. The equity created through the sale of the credits is the project’s primary funding source. The HIF funds will supplement a financial gap caused by an unexpected decrease in LIHTC credit value before the equity was able to be provided to the project.

“One of the greatest values of the Housing Incentive Fund is the program’s ability to close gaps in the financing of affordable rental housing,” said Kline.

Since HIF’s 2011 inception, almost $89 million has been allocated to 79 projects, leveraging more than $427 million in construction financing to support the development or rehabilitation of more than 2,500 housing units statewide. During the most recent funding round, NDHFA received five applications for the $1.2 million in HIF assistance that was available due to the cancellation of previous commitments.

NDHFA is a public financial institution dedicated to making housing affordable for all North Dakotans. The Industrial Commission of North Dakota, consisting of Governor Doug Burgum, as the chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees the state agency.