FINANCE AGENCY Doug Goehring Agriculture Commissioner · SW Desi n Build, Inc. McKenzie County ....

6
I FINANCE AGENCY Essential Service Worker housing update North Dakota Housing Finance Agency Division of the State Industrial Commission Jolene Kline, Executive Director Jolene Kline Executive Director INDUSTRIAL CDMMISSHlN Jack Dalrymple Governor Wayne Stenehjem Attorney General Doug Goehring Agriculture Commissioner December 7, 2016 North Dakota Century Code requires that the housing finance agency maintain a register reflecting the number of housing units owned or master leased by cities, counties, school districts, or other employers of Essential Service Workers (ESW). This register must also reflect those entities that are providing rent subsidies for their essential workers. I am here to provide a quarterly report on progress being made in reducing those numbers. North Dakota Housing Finance Agency surveyed public entities and medical facilities on the register in November. Not every ESW employer responded to our request for updated numbers. We made the assumption that the numbers previously reported stood for those entities not responding. Type of Number of Number of Units Respondent Units Owned Master Leased City 27 0 County 33 0 First Responder* 15 0 Medical** 107 21 School Districts 210 0 Total 392 21 *Includes law enforcement, emergency medical services and fire departments ** Includes nursing facilities, hospitals and basic care facilities Number of Rent Subsidies Provided 233 2 14 0 0 249 The overall number of owned units decreased by eight from my last report. The number of housing units owned by school districts decreased by 14; cities decreased by two units; counties decreased one unit; first responders remained the same; and medical increased by nine housing units. While some entities are working to sell off some housing units, a large majority of housing unit owners do not plan to divest themselves of the housing and report that the housing is used to recruit and retain staff. The number of master leased units decreased by 108. As you will notice, only medical facilities continue to master lease units on behalf of their employees. Again, it should be noted that medical facilities are largely non-profit businesses and are not public entities. The number of rental subsidies provided to ESWs increased by 47. The City of Williston makes up all but 19 of the rental subsidies provided. Their numbers increased by 55, but they have 2624 Vermont Avenue PO Box 1535 • Bismarck, North Dakota 58502-1535 Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free: 800/292-8621 • 800/366-6888 (TTY) www.ndhfa.org [email protected]

Transcript of FINANCE AGENCY Doug Goehring Agriculture Commissioner · SW Desi n Build, Inc. McKenzie County ....

Page 1: FINANCE AGENCY Doug Goehring Agriculture Commissioner · SW Desi n Build, Inc. McKenzie County . Healthcare S stems McKenzie County Healthcare S stems Famil . Famil . Workforce/ Famil

• I

FINANCE AGENCY

Essential Service Worker housing update North Dakota Housing Finance Agency Division of the State Industrial Commission Jolene Kline, Executive Director

Jolene Kline Executive Director

INDUSTRIAL CDMMISSHlN Jack Dalrymple Governor

Wayne Stenehjem Attorney General Doug Goehring Agriculture Commissioner

December 7, 2016

North Dakota Century Code requires that the housing finance agency maintain a register reflecting the number of housing units owned or master leased by cities, counties, school districts, or other employers of Essential Service Workers (ESW). This register must also reflect those entities that are providing rent subsidies for their essential workers. I am here to provide a quarterly report on progress being made in reducing those numbers.

North Dakota Housing Finance Agency surveyed public entities and medical facilities on the register in November. Not every ESW employer responded to our request for updated numbers. We made the assumption that the numbers previously reported stood for those entities not responding.

Type of Number of Number of Units Respondent Units Owned Master Leased

City 27 0 County 33 0 First Responder* 15 0 Medical** 107 21

School Districts 210 0

Total 392 21

*Includes law enforcement, emergency medical services and fire departments

** Includes nursing facilities, hospitals and basic care facilities

Number of Rent Subsidies Provided

233 2

14 0

0

249

The overall number of owned units decreased by eight from my last report. The number of housing units owned by school districts decreased by 14; cities decreased by two units; counties decreased one unit; first responders remained the same; and medical increased by nine housing units. While some entities are working to sell off some housing units, a large majority of housing unit owners do not plan to divest themselves of the housing and report that the housing is used to recruit and retain staff.

The number of master leased units decreased by 108. As you will notice, only medical facilities continue to master lease units on behalf of their employees. Again, it should be noted that medical facilities are largely non-profit businesses and are not public entities.

The number of rental subsidies provided to ESWs increased by 47. The City of Williston makes up all but 19 of the rental subsidies provided. Their numbers increased by 55, but they have

2624 Vermont Avenue • PO Box 1535 • Bismarck, North Dakota 58502-1535 Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free: 800/292-8621 • 800/366-6888 (TTY)

www.ndhfa.org [email protected]

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APPENDIX R
Page 2: FINANCE AGENCY Doug Goehring Agriculture Commissioner · SW Desi n Build, Inc. McKenzie County . Healthcare S stems McKenzie County Healthcare S stems Famil . Famil . Workforce/ Famil

reported that they plan to end these subsidies within the coming year. Currently, they provide $350 per month to employees and will decrease that amount to $150 per month starting January 2017. The North Dakota Highway Patrol makes up 13 of the 19 remaining rental subsidies (averaging $352 per month) and plan to end them by July 1, 2017, or sooner depending on funding. The City of Belfield provides two subsidies of $300 per month and plans to end them by July 1, 2017. The City of Powers Lake pays one subsidy of $500 per month and will discontinue when grant funding ends. Burke County has two subsidies of housing costs over $500 and the Burke County Sheriff's Office has one subsidy of $300 per month which is funded through oil impact grant funding.

The Housing Incentive Fund has been instrumental in helping reduce the burden on public entities that, at the height of the energy development boom, were extremely challenged in recruiting and retaining workforce due to escalated housing costs. Since the institution of the priority for Essential Service Workers in the program in 2013, it has helped develop 450 units of housing that are income- and rent-restricted to ESWs.

As you will recall, the Housing Incentive Fund was first authorized by the Legislative Assembly in 2011 and reauthorized in 2013 and 2015 to help address the housing needs of the state. In the current biennium, the program has or will help create 986 housing units and spur more than $172.5 million in housing construction. In the history of the program, more than 2,324 housing units have been created in 74 projects across North Dakota. The HIF program has leveraged more than $397. 7 million in housing construction activity. Attached to this report, please find a listing of Housing Incentive Fund projects.

I have had the great privilege over the past several years of visiting many of these projects and talking with some of the residents, as I know some of you have as well. Visiting with those workers, families and grandparents who call these apartments home is always an excellent reminder of what the Housing Incentive Fund program is all about - people. While it is easy at times to think only about the numbers I presented today as costs for our local jurisdictions, what we are actually talking about is the people who keep our communities and economy moving

forward.

The Housing Incentive Fund is having an impact in the lives of people across the state. It has been a very effective tool in reducing the number of housing units owned by public entities. It has also been critical in providing affordable options for seniors, people with disabilities, people who are homeless, and workers in all different professions whether Essential Service Workers or in jobs on Main Street - which are also crucial in keeping our communities operating. To help give you a sense of this impact, I'm attaching two of our "Faces of Home" stories on Essential Service Workers in Dickinson and Williston.

The North Dakota Housing Finance Agency remains committed to working with our communities and housing providers to ensure that affordable rental options are available for those who need them.

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-Arrowhead Estates Arneoard Bio Mountain Oevelooment

Belfield Law Enforcement Housina Belfield HA for Citv of Belfield

Greenfield Heiohts Belfield LSS Housino Belfield LLC

New Eneroy Apartments Beulah LSS Housino, Inc.

100 W Main LP (Metro 100 West Main Bismarck Plains)

Boulevard Ave Community Ruth Meiers Hospitality Center Bismarck House

COG Bismarck Housing, I, FiveSouth 1 Bismarck LLC

lndeoendence Livino Bismarck lndeoendence Livino LLC

lndeoendence Pointe Bismarck lndeoendence Pointe, LP

Community Homes of North 19th Street 5-Plex Bismarck Bismarck, Inc

Sierra Court Bismarck Sierra Court, LLP <MPEGl

The Landina Bowman LSS Housina Bowman, LLC

The Willows Burlinaton Beyond Shelter, Inc.

Divide Vista Aoartments Crosby DCEDC

Northern Liohts Aoartments Crosbv Loretto Bav Six, LLC

Aoassiz Circle Phase 2 Part 1 Devils Lake ~noooiz Prooerties LLLP

Aaassiz Circle Phase II Devils Lake Aaassiz Properties LLLP

Mauve Estates I Devils Lake SW Desion Build, Inc.

Heritaae Hills Dickinson Heritaae Hills I LLLP

Heritaae Hills II Dickinson Bevond Shelter, Inc.

G.A. Haan Development, Lincoln Park Townhomes II Dickinson L.L.C.

Northern Place LLLP Northern Place Dickinson llHousina Solutions)

Patterson Heiohts Dickinson Beyond Shelter, Inc.

Prairie Winds (Phase 1l Dickinson Roers, Inc.

Prairie Winds Apartments 2 Prairie Winds <Phase 2) Dickinson LLC

South Main Aoartments Dickinson AK Investments LLP

Sullivan Aoartments Dickinson Sullivan Prooerties Jeremiah Program of Fargo-

Jeremiah Proaram Aoartments Fama Moorhead

North Sky I Faroe Beyond Shelter, Inc.

North Sky II Faroe Beyond Shelter, Inc.

North Sky 111 Farao Bevond Shelter, Inc.

Che~od Villaoe Grand Forks Vallev Homes and Services

Universitv Flats Grand Forks Dakota Commercial Region V Community

Prairie Pointe Gwinner Develooment Coro

Hazen Community Pioneer Homes Apartments Hazen Development Group

Courtside Villaoe Hettinoer LSS Housino, Inc.

Garden Hills II Jamestown Hometown Livina LLC

Jamestown Court Rowhomes Jamestown Jamestown Rowhomes LP

Kenmare CDC Housing 12-Plex Kenmare Kenmare Develooment Coro

Kenmare Gooseneck 12·Plex :Kenmare Moure Eauioment LLP

Workforce/ Familv

Workforce/ Familv

Familv

Workforce/ Family

Senior

Homeless

Workforce/ Familv

Disabled

Disabled

Disabled

Senior

Disabled I Family

Workforce/ Family

Familv

Familv

Familv

Familv

Family

Senior

Senior Workforce/ Family/ Homeless

Familv/ Homeless

Family

Workforce/ Family

Family

Familv

Familv/ Disabled

Homeless/ Familv

Senior

Senior

Senior

Senior

Familv

Familv

Senior

Workforce/ Family

Senior

Familv/ Senior

Family

Familv

North Dakota Housing Incentive Fund Assisted Projects

2011 - 2017

New Construction 16 $3,673,093 $1,021,000

New Construction 4 $744,484 $96,000

New Construction 12 $1,551,650 $225,000

New Construction 24 $3,830,475 $1,149,143

New Construction 30 $6,546,962 $600,000

Adaotive Reuse 85 $10,752,617 $2,855,500

New Construction 96 $17,117,226 $3,000,000

New Construction 14 $1,697,003 $483,045

New Construction 24 $3,800,563 $425,000

New Construction 5 $1,205,610 $361,683

New Construction 40 $7,126,854 $600,000

New Construction I Debt Retirement 26 $3,653,747 $1,130,264

New Construction 40 $8,257,000 $3,000,000

New Construction 12 $1,200 000 $240,000

New Construction 18 $3 979,127 $1,000,000

New Construction 10 $1,434,283 $333 333

New Construction 8 $1,287,599 $385,269

New Construction 24 $3,750,000 $1,125,000

New Construction 42 $8,194,643 $200,000

New Construction 39 $7,138,819 $600,000

Debt Retirement 32 $5,783,090 $2,890,000

New Construction 36 $7,761,566 $600,000

New Construction 24 $3,440,008 $1,376,003

New Construction I Debt Retirement 36 $6,105,803 $1,512,000

Debt Retirement 36 $6,000,000 $1,512,000

Adaotive Reuse 10 $1,526,502 $410,852

New Construction 30 $4,794,132 $1,416,837

New Construction 20 $4,400,000 $2,200,000

New Construction 24 $2,855,460 $1,142,184

New Construction 30 $4,251,383 $600,000

New Construction 30 $4,475,000 $600,000

New Construction 30 $5 235,244 $454,545

New Construction 70 $11,244,299 $2.800 000

New Construction 17 $2,929,353 $976,109

Adantive Reuse 18 $4,181,237 $2,102,000

New Construction 24 $3,811,442 $1,493,663

New Construction 40 $4,995,084 $1,497,625

New Construction 24 $4,716,588 $400,000

New Construction 12 $1,350,000 $240,000

New Construction 12 $1,350,000 $240,000

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Prairie Gold A artments

Bel Tow er A artments

Li nite Housin Pro·ect

Collins Place

Shoal Creek A artments

Trails West Townhomes

Cook's Court

Fieldcrest

Mainstreet Arts ace Lofts

Minot Place Rowhomes

Oakwood Court

Park South Phase 2

Rolling Ridge Estates (aka Kenwood on 5th

Sunset Rid e Phase I

Killdeer

Killdeer

Kulm

L. nite

Mandan

Mandan

Mandan

Minot

Minot

Minot

Minot

Minot

Minot

Minot

Minot

Dakota Commercial & Develo ment

Dakota Commercial

AHDI

Be end Shelter, Inc.

Be end Shelter, Inc.

Minot Arts ace Lofts LP

MetroPlains LLC

Minot Housin Authorit

Park South Holdin , LLC

SW Des n Build

Be end Shelter, Inc.

Workforce/ Famil

Fam ii

Famil

Workforce/ Famil

Famil I Senior

Fam ii

Fam ii

Senior

Workforce/ Famil

Famil and Disabled

Fam ii

Disabled

Workforce/ Famil

Workforce/ Famil

Famil

Meadowlark Homes New Rockford EPIC Mana ement, LLC Workforce/ Famil

Second Avenue A artments New Rockford Lesmeister Ente rises, LLC Workforce/ Fami

Meridian A artments Valle Cit

Valle Bluffs Valle Cit

McKenzie Healthcare 6-Plex Watford Cit

McKenzie Healthcare Systems Em lo ee Housin Watford Cit

McKenzie Park A artments Watford Cit

Watford Cit A artments Watford Cit

Wolf Run Villa e Watford Cit

Wolf Run Villa e II Watford Cit

Prairie Hei hts Phase I Watford Cit

Prairie Hei hts Phase II Watford Cit

714 Place Williston

Mere He hts Williston

Park Rid e T ownhomes

Renaissance on Main

WSC Foundation Housing Phase 1

WSC Foundation Housing Phase II

Williston

Williston

Williston

Williston

Gear e Gaukler

SW Desi n Build, Inc.

McKenzie County Healthcare S stems

McKenzie County Healthcare S stems

Famil

Famil

Workforce/ Famil

Workforce/ Famil

G.A. Haan Develo ment Workforce/ Famil

LSS Housin , Inc. Workforce/ Famil

Wolf Run Villa e, Inc Workforce/ Famil

Wolf Run Villa e, Inc. Workforce/ Famil

LSS Housing Watford City LLC Workforce/ Famil

LSS Housing Watford City LLC Workforce/ Famil

Envision Land & Develo ment Workforce/ Famil

CHI Housin Initiatives Famil

ParkR' e Townhomes LLC Workforce/ Famil

Renaissance Station LLC Workforce/ Famil

Williston State Foundation Housin , LLC Famil

Dakota Commercial & Develo men! Workforce/ Famil

New Construction

New Construction

Ada tive Reuse

New Construction

New Construction

New Construction

New Construction

New Construction

New Construction

New Construction

New Construction

Rehabilitation Rehabilitation of Habitable

New Construction

New Construction

New Construction

New Construction

New Construction

New Construction

Retirement of Debt

New Construction

New Construction I Debt Retirement

New Construction

New Construction

New Construction

New Construction

New Construction

Retirement of Debt

New Construction

New Construction

New Construction

New Construction I Debt Retirement

New Construction

24

6

26

29

48

12

40

42

34

30

7

35

50

35

10

36

40

24

60

77

42

20

58

66

5

66

36

30

74

74

$1,090,904 $326,072

$3,300,000 $1,000,000

$527,473 $120,198

$4,564,060 $1,265,000

$3,885,000 $1, 100,000

$6,990,462 $2,085,000

$2,542,000 $762,000

$6,830,000 $600,000

$8,110,069 $2,310,000

$7,480,422 $200,000

$6,525,150 $200,000

$389,000 $155 600

$7,329,729 $2,015,974

$7,613,000 $2,250,000

$8,012,724 $600,000

$1,497,379 $430,000

$800,000 $240,000

$4,772,000 $1,431,600

$6,200,000 $1,660,000

$550,000 $136,950

$6,098,517 $1,830,000

$11,650, 173 $3,490,000

$13,775,000 $3,000,000

$6,721,699 $1,483,231

$3,721,544 $909,374

$8,277,730 $1,000,000

$8,878,413 $1,000,000

$1,125,000 $315,000

$10 959,000 $1 000,000

$6,827,414 $2,048,224

$10,014,069 $3,000,000

$10,102,762 $3,000,000

$10,000,000 $3,000,000

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A pink rocking chair sways in the

breeze on Miriam Shaw's front

porch at ParkRidge Town homes in

Williston's new Harvest Hi lls

subdivision as she stands at her

stove tending to boiling pots. The

spacious ki tchen is the Jamaican

native's favorite place in her new

home and the comfort of knowing it

will be affordable for years to come

makes everything taste a little sweeter.

Shaw moved into her town home with her

two children shortly after the complex

opened in October 2015. " It reminds us of

our home back in Georgia," she said. "It is

really nice. We really like it."

A nurse at Mercy Medical Center's

occupational health clinic in Williston,

Shaw moved to town in 2014 following

her daughter who had come, like many

others, in search of opportunity. She

appreciates what the community and

state have to offer. "I like Williston . It is

small, but I like the open spaces, places to

walk and the scenery," she said. "And I

love living here. It is really comfy and just

cozy like our [previous] home was."

Shaw struggled to find a place to live

when she first arrived in Williston and

lived in several other apartment units ' which had space and cost challenges

before moving into the townhouse

Promise of Affordability The units must

remain at

affordable levels

for at least 15

years.

Shaw's town home

has an open­

concept with all

the amenities she

was looking for

including a heated

attached garage.

"That is so nice, to

be able to pull in

and throw the In addition to medical staff, there are also

law enforcement personnel, school grocery bags out," she said. "The layout is

nice. We have so much storage; they

utilized every inch." employees and county workers who call

ParkRidge home.

Shaw said while

market rate rents in

Williston have

fluctuated due to

changes in the oil

industry, the

assurance that her

rent will remain

affordable was a

huge bonus.

Housing Incentive Fund (HIF)

Administered by North Dakota Housing Finance Agency (NDHFA), HIF supports the development of affordable units for low- and moderate-income households.

The program was created during the 2011 Legislative Session. It was reauthorized during the 2013 and 2015 sessions.

Since HIF's inception, NDHFA has allocated over $80 million to projects, leveraging nearly $380 million in construction financing.

She also appreciates

its convenient location

just blocks from the

new Williston High

School, where her son

will attend. "I'm

excited to be closer to

the school. .. probably

more than he is," she

said. " I'm going to be

so happy to have a

shorter drive to his

school events."

"The promise that

the price would

remain affordable

for 15 years is very ---------------... Shaw who lived and

worked as a nurse in New York and nice," she said . "It just gives you comfort

Georgia before coming to North Dakota in your mind that it will remain . That really

sees herself enjoying more evenings is a nice promise because we don't know

rocking in her pink chair which she hopes what lies around the corner."

to make even more colorful or in her

community. ParkRidge Town homes, The stability of the rent in Shaw's unit at kitchen cooking unique Jamaican fare like

developed by Mountain Plains Equity ParkRidge comes from its funding through jerked chicken and pork, rice and beans in

Group, includes 36 units with half of them the Housing Incentive Fund. The $7.2 coconut milk, curried goat and spicy fried

targeted to Essential Service Workers like million project received just over $2

Shaw. Rent for the ESWs are restricted million from HIF, administered by the

id tenants must be below income limits. North Dakota Housing Finance Agency.

fish dishes. " It is such a nice place," she

said . "I feel like we are going to be here a

while."

2624 Vermont Ave • PO Box 1535 • Bismarck, ND 58502-1535

701 /328-8080 • 800/292-8621 • [email protected] • www.ndhfa .org

An Industrial Commission Agency

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(

'Godsend To Our Police Department'

A year and a half ago, Hunter Easterling completed law enforcement training and moved from California to Dickinson, ND, to pursue a career as a police officer.

While settling in , Easterling found that finding a home in a growing oil boom town wasn't easy. He lived in an RV park, a hotel and an apartment that

Heights and the development has truly been a Godsend to our police department."

Patterson Heights is supported by North Dakota Housing Finance Agency's Housing Incentive Fund (HIF) and a Law Enforcement Pilot

_ ___ ... _,,, .... Program (LEPP). The

_, • ..,,,'"=• programs are a means to create affordable rental units for essential services

was not quite ideal before Patterson state workers are hired because they Heights Apartments, a new affordable are good candidates looking for a job

workers and households of limited means.

housing development, became available.

Patterson Heights is one of the first developments in North Dakota to set­.:iside rental units specifically for law enforcement personnel.

"The place is outstanding; everything is new," said Easterling. "It was such a relief to find a place to live, truly a weight off my shoulders."

In recent years, Dickinson has experienced an influx of energy industry workers and, while new housing units are being added , finding affordable housing is a challenge.

Recruiting and retaining the personnel that provide essential public services is difficult due to increased housing costs and shortages.

Dave Wilkie, administrative captain at the Dickinson Police Department, has noticed significant growth in his home town. "Our department has grown over the last few years and we are adding more and more officers as rieeded," said Wilkie. "Many out-of-

110R1H DAKOTA •

®~!I!!O

and their own local police departments are slowing down. "

Created during North Dakota's 2011 legislative session, HIF provides developers of affordable rental units The Dickinson Police Department is

constantly in touch with real estate with low-cost financing . It is agents and apartment managers about potential listings, rental openings or even basements for rent to aid their staff in finding places to live. The city of Dickinson also has FEMA

The Law Enforcement Pilot Program was created to address the challenge of providing affordable rental housing for law enforcement personnel in energy-impacted areas of North Dakota. The program was funded by the approximately $3 million that the State received through the Mortgage Servicer Settlement Fund which originated from a landmark settlement reached

capitalized by contributions from state taxpayers. Contributors to the fund received a dollar­for-dollar state income tax credit for their support.

The North Dakota Industrial Commission asked NDHFA to

with the nation's five major mortgage develop LEPP. The servicers. program is targeted to -------------- creating housing for

trailers law enforcement personnel in

available for officers just until they can communities in energy-impacted find something more permanent.

areas. "Having affordable housing is really

"I like Dickinson," said Easterling. important to our community. There are "The city is growing, 1 like my new many people who don't work in the oil d elo m nt and 1 real! apprec·ate ev p e y 1 fields and they can't afford the high

the housing I'm living in." rents ," said Wilkie. "We currently have

(Original article published in Oct. 201 3.) three officers living in Patterson

2624 Vermont Ave • PO Box 1535 • Bismarck , ND 58502-1535

701/328-8080 • 800/282-8621 • [email protected] • www.ndhfa.org

An Industrial Commission Agency

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