Low Income Housing Credits | VideoAlex Hagan | 4/9/2012
"We make an award of federal low income housing tax credits. Individuals, Organizations purchase these tax credits and provide that equity into the project which reduces the amount of debt that the developer of the property has to take on," said NDHFA Planning and Housing Director Jolene Kline.
Credits are awarded to developers if they meet both federal and state priorities. Dickinson city leaders say they make a huge difference when it comes to constructing housing.
"They really help divide down the cost of a project and there by allowing rents to be at a low income level," said City Administrator Shawn Kessel.
But the cost of housing is increasing, and residents are not able to afford housing that was once considered in their price range.
"As the rents increase, as the cost of living increases, not everybody`s salary keeps pace with that," Kessel said.
City leaders say they think this problem will keep growing with the energy boom.
"As the private sector adds additional units, it`s creating additional housing opportunities, however so many of these units are coming in at upper end market prices that are beyond the affordability of people were interested in serving," Kline said.
Construction on the housing development will begin this summer and rent will range from $350 to $900 per month for qualified households.
The North Dakota Housing Finance Agency granted additional credits to developments in Williston, Minot and on the Standing Rock Reservation for a total of $2.1 million.