North Dakota Low-Income Housing Tax Credit (LIHTC) Program

Affordable housing is an essential cornerstone of strong and stable communities, and the Low-Income Housing Tax Credit (LIHTC) Program is a vital tool for this mission for North Dakota. It is administered by the North Dakota Housing Finance Agency (NDHFA) to help developers create and preserve affordable rental housing for low-income families, seniors, and the specially-abled population.

 

This comprehensive resource guide provides everything you need to know about the LIHTC program in North Dakota—from the benefits to the application process, impact, and city-specific information. You will receive actionable, detailed information tailored to your needs as a developer, property manager, or tenant.

What is the North Dakota LIHTC Program?

The LIHTC Program in North Dakota encourages private developers to build or rehabilitate affordable rental housing. Since its introduction, this program has been very effective in helping to solve housing issues among North Dakotans, focusing generally on the vulnerable and the less-resourced. 

How Does the LIHTC Program in North Dakota Work?

LIHTC offers developers federal tax credits while reducing tax liability over ten years. These credits make affordable housing projects financially viable in areas mostly dominated by high-rate housing.

 

• 9% Competitive Tax Credits: The credits attract higher equity for projects, and these are normally used for new construction or significant rehabilitation.

 

• 4% Non-Competitive Tax Credits: The credits are often matched with tax-exempt bonds and support projects acquiring and moderately rehabilitating.

 

Adhering to the NDHFA’s Qualified Allocation Plan, developers ensure that their projects attain not only the state’s goals but also other specific and appropriate objectives in qualifying and allocating funds equitably and effectively.

Benefits of the LIHTC Program Matter in North Dakota?

 

The LIHTC program addresses special housing needs across varied communities. From Fargo’s rapidly growing population to Williston’s energy boom, the program meets the need for safe, affordable housing among low-income households.

 

Key Benefits of LIHTC in North Dakota

  

• Increases Stock of Housing: Construct new or rehabilitate existing affordability units.
• Boosts Economy: Creates construction jobs and ongoing property management jobs
  
• Helps Distressed Populations: Targets senior, family, and specially-abled populations.
• Lends Legitimacy to Private Investment: Fills the gap between public demand and private capital.

With North Dakota’s rural and urban populations, LIHTC is an important tool for meeting different kinds of housing needs.  

How to Apply for the LIHTC Program in North Dakota

 

Applying for LIHTC funding requires a clear understanding of program guidelines. Developers must prove that their project is viable, affordable, and meets the state’s housing priorities.

 

Eligibility Criteria for North Dakota LIHTC Program

  

To get LIHTC funding, developers must:

 

• Control the proposed site and confirm that it is located in permissible zoning
  

• Demonstrate feasibility in their projects
  

• Commit at least the percentage of the total units required to low-income families for at least 30 years
  

• Fail less than the threshold requirements set by NDHFA from the QAP.
   

North Dakota LIHTC Application Process

 

• Review the Qualified Allocation Plan (QAP): Scoring criteria and set-asides
  

• Prepare Your Proposal: This will include site plans, financing, and community impact narratives
  

• Submit Your Application: LIHTC applications are accepted by NDHFA during the months allowed for each year
  

• Scoring Participation: NDHFA scores project on affordability, design, and whether it addresses housing priorities
  

• Executed the Agreements: Developers must sign agreements after approval and meet NDHFA monitoring requirements and LIHTC compliance.
   

 

For additional information, contact NDHFA at 701-328-8080 or at www.ndhfa.org.  

Affordable Housing in Major North Dakota Cities

 

Each city has unique housing challenges. The LIHTC programs will prepare communities to meet those challenges.

  

Low-Income Housing in Fargo, ND

 

Fargo, ND’s largest city, also sees a high demand for housing because of its fast-growing population. LIHTC efforts in this city focus on low-income housing and income-based apartments.

Low-Income Housing in Bismarck, ND

 

Bismarck is the state capital and prioritizes senior citizens and low-income families. Low-income apartments in Bismarck, ND, powered by LIHTC, have added affordable housing choices to this administrative center.

Low-Income Housing in Grand Forks, ND

 

The pressure of population, alongside that of university, has raised housing problems in Grand Forks. Low-income housing in Grand Forks, ND, through LIHTC projects, targets families and students who require affordable rent options.

Low-Income Apartments in Williston, ND

 

With the energy boom in Williston, the need for affordable housing is becoming critical. LIHTC has allowed the creation of low-income apartments in Williston, ND, targeted toward low-wage workers and their families.

LIHTC State Program Impact in North Dakota

 

The LIHTC program has changed the face of housing in North Dakota by providing long-term affordability and economic stability.

 

Key Results

 

• 8,811 units developed or preserved statewide. 

• Almost 19,000 households have access to quality, affordable rentals. 

• More than $614 million in state and local tax revenue was generated. 

• 15,500 jobs were created during the construction phases.
   

These accomplishments highlight the program’s contribution to its hosting community’s quality of life and economic development.

Section 8 Housing in North Dakota

 

Section 8 housing provides direct rental assistance for low-income families, complementing LIHTC efforts. In North Dakota, Section 8 housing is an important source for those renting with the desire for affordable options. These developments often intersect with LIHTC developments to increase affordable housing. 

LIHTC Compliance in North Dakota

 

NDHFA enforces strict LIHTC compliance measures to preserve the integrity of LIHTC projects.

  

• Annual Tenant Certifications: The developer must ensure that tenants’ income meets the established standards to maintain eligibility. 

• Property Inspections: Consistent inspections ensure properties meet health, safety, and quality standards. 

• Extended Use Period: LIHTC projects remain affordable for at least 30 years.
   

Developers must comply with NDHFA requirements from the point of submission of the proposal to the end of the project lifecycle. 

Resources for Developers and Tenants

 

For Developers

 

• Qualified Allocation Plan (QAP): Detailed rules for LIHTC applications. 

• LIHTC Compliance Manual: Detailed guidelines on remaining compliant with federal and state requirements.
   

For Tenants

 

• Search Affordable Housing through Housing Agencies in North Dakota: Explore low-income housing in Fargo, ND, low-income housing in Bismarck, ND, and other areas.
• Section 8 Assistance: Contact local agencies for further assistance on the subsidies
  

Why Trust the LIHTC Program in North Dakota?

 

LIHTC is the lifeline for thousands of North Dakotans, whether the low-income apartments in Fargo, ND, or low-income housing in Bismarck, ND, are of any concern. The developers enjoy tax incentives while the communities get high-quality, affordable housing.