Tag Archives: Tioga

Program Guarantees Speculative Development

North Dakota Housing Finance Agency’s Construction Loan Guarantee program supports the speculative development or rehab of single-family homes in the state’s rural communities.

ConstructionLoan“Building homes in rural communities poses many challenges,” said Jennifer Henderson, NDHFA planning and housing development director. “The pool of potential buyers is smaller making construction lending much riskier and the cost of constructing a home is often higher than what the home will sell for in the current market. Guarantees reduce the potential loss to the lender while helping a community expand its housing stock.”

Through the program, NDHFA will guarantee the lesser of 50 percent of the construction loan made to the individual contractor or $93,500. At any given time, only three active guarantees are allowed per contractor and five per community. The lender or contractor must demonstrate that a need exists in the community for the housing and that the local governing body supports the development.

Use of the Construction Loan Guarantee program is limited to the financing of projects in communities with a population of less than 35,000.

Since the program’s inception in 2007, NDHFA has issued 46 guarantees totaling $2.75 million which have leveraged more than $7.2 million in development costs in the communities of Belfield, Carrington, Hazen, Northwood, Saint John and Tioga.

Information on the construction guarantees and other development resources available from NDHFA can be found online at www.ndhfa.org or by contacting Henderson at (800) 292-8621 or hfainfo@nd.gov.

Nonprofit Marks Completion of Two Tioga Housing Developments

TIOGA, ND – Lutheran Social Services Housing, Inc. and the North Dakota Housing Finance Agency (NDHFA) marked the successful completion of two Tioga apartment complexes on Tuesday morning with an old fashioned pie and ice cream social.

“Lutheran Social Services’ focus is on strengthening North Dakotans, their families and their communities,” said Jessica Thomasson, Lutheran Social Services Housing director. “We are pleased to be here in the heart of North Dakota’s energy boom, providing for the housing needs of the people of Tioga.”

Located just north of the Tioga Medical Center, the Nordic Hills Apartments provides 26 units of affordable rental housing for seniors and families.

Located just north of the Tioga Medical Center, the nonprofit’s new Nordic Hills Apartments provides 26 units of affordable rental housing for seniors and families and its adjacent Juniper Ridge Apartments offers an additional 10 spacious units.

“Keeping rural communities thriving is very important to NDHFA,” said Jolene Kline, NDHFA acting executive director. “We are proud to partner with Lutheran Social Services to support this community’s affordable housing needs.”

NDHFA allocated $474,025 in 2010 federal Low Income Housing Tax Credits (LIHTC) to Nordic Hills bringing $3.5 million in equity to the project. The development qualified for a LIHTC program set-aside for energy-impacted communities. The National Equity Fund syndicated the credits and supported Lutheran Social Services in completing what was their first tax credit project.

The state agency also provided Nordic Hills with $2 million in construction financing through the federal Neighborhood Stabilization Program (NSP3); $800,000 of which was converted to permanent financing. The total project cost was $4.5 million.

Juniper Ridge received $1 million in permanent financing from NDHFA through NSP3. The project cost exceeded $1.5 million.

Additional key partners in the developments include Bremer Bank, the Tioga Fund, and the Star Fund. “All of our partners have been vital to getting this project off the ground,” Thomasson noted. “We could not do this work alone.”

All of the Nordic Hills units have gross rents that meet the requirements for the Housing Choice Voucher Program in Williams County, which means tenants with housing vouchers are able to use them at the property. A three-person household that earns $34,860 or less will qualify to rent one of the three-bedroom units for $670.

An additional 10 spacious units are available in the Juniper Ridge Apartments.

The units in the Juniper Ridge complex are restricted to households earning no more than 120 percent of Area Median Income. Currently, a three-person household that earns $69,720 or less will qualify to rent one of the three-bedroom apartments for $797.

Lutheran Social Services Housing, Inc., a program of Lutheran Social Services of North Dakota, supports the continued vitality of the state’s smaller communities by providing nonprofit affordable housing and housing-related services, with fifteen rental housing projects currently completed and/or under management, with several additional projects in various stages of development.

Lutheran Social Services of North Dakota, guided by a spirit of service, is a statewide social services agency serving thousands of North Dakotans in need of affordable housing, food, disaster recovery, counseling and therapy and other programs that strengthen individuals, families and communities without regard to clients’ race, religion, gender or economic status.

The Industrial Commission of North Dakota, consisting of Governor Jack Dalrymple as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees NDHFA.