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In the housing industry, typically a boom in population is a great thing, unless that population growth somehow edges out certain sectors of the population. That’s what happened when an oil boom in western North Dakota caused a 17 percent increase in population, putting a severe strain on available housing stock across the state. While housing costs sky rocketed, it left many low- and middle-income residents severely cost-burdened or homeless.
The housing crisis was exacerbated when the city of Minot was inundated by a 500-year flood which destroyed more than 4,100 homes. A severe housing shortage became catastrophic. While many homeowners were able to rebuild, low income residents were left with few housing options. With thousands of single and multi-family homes in need of rebuilding, an already strained construction industry was pushed to the limit. The high demand for building materials increased construction costs and there was nowhere to house thousands of construction workers to rebuild the city. Residents and construction workers were living in campers, tents, temporary FEMA housing, with relatives, or in nearby rural towns.
To meet the need for low-to-moderate housing options, CommunityWorks North Dakota (CWND), a NeighborWorks member, partnered with MetroPlains, LLC to develop and build Minot Place Rowhomes. Situated on four acres, Minot Place offers 30 living units, with some designed for wheelchair accessibility. Consistent with traditional neighborhood design, the townhomes are oriented along a double-loaded private drive with attached garage access at the rear of each unit and an open porch at the front of each unit. Homes range in size from one to three bedrooms, which helps accomodate families with children or those adults caring for elderly parents. The complex also features a community room equipped with a kitchen and a playground. Six of the 30 units are reserved for residents below 30percent of Average Median Income (AMI) and the remaining units are reserved for residents below 60 percent of AMI.
The project was possible because of Housing Incentive Funds provided by the State of North Dakota, financing through Community Housing Capital and CommunityWorks North Dakota, and Low Income Housing Tax Credits.
Minot Place is a unique project because of the cross-sector partnerships among a nonprofit, CommunityWorks North Dakota, a for-profit, MetroPlains LLC, and the State of North Dakota. The tri-fold partnership leveraged the expertise of all organizations. The State of North Dakota's Housing Incentive Fund helped buy down the cost of the project ensuring the affordability of all 30 units. CommunityWorks North Dakota's NeighborWorks America membership provided access to financing by Community Housing Capital. MetroPlains was instrumental in the property development. Without this unique combination of government, non-profit, and private sector financing and expertise, Minot Place would not have succeeded. And without this collaborative effort, 30 families would not have access to affordable, safe and healthy homes.
In looking to continue to support this project and improve upon the model for future designs, CommunityWorks North Dakota learned that while creating the financial projections, it is critical to obtain written agreements whenever possible on tax assessments from taxing entities. Some of the tax rates based on market-rate housing rather than on low-income housing can derail sound cash projections. Being careful and more astute around all funding resources requirements is critical, as proven with the LIHTC structure. CommunityWorks North Dakota also learned to be collaborative and creative on expertise used, resources and overall financing as necessary assets are scarce. Honing in on these lessons learned will help greatly in moving forward to the next project.
The housing crisis was exacerbated when the city of Minot was inundated by a 500-year flood which destroyed more than 4,100 homes. A severe housing shortage became catastrophic. While many homeowners were able to rebuild, low income residents were left with few housing options. With thousands of single and multi-family homes in need of rebuilding, an already strained construction industry was pushed to the limit. The high demand for building materials increased construction costs and there was nowhere to house thousands of construction workers to rebuild the city. Residents and construction workers were living in campers, tents, temporary FEMA housing, with relatives, or in nearby rural towns.
To meet the need for low-to-moderate housing options, CommunityWorks North Dakota (CWND), a NeighborWorks member, partnered with MetroPlains, LLC to develop and build Minot Place Rowhomes. Situated on four acres, Minot Place offers 30 living units, with some designed for wheelchair accessibility. Consistent with traditional neighborhood design, the townhomes are oriented along a double-loaded private drive with attached garage access at the rear of each unit and an open porch at the front of each unit. Homes range in size from one to three bedrooms, which helps accomodate families with children or those adults caring for elderly parents. The complex also features a community room equipped with a kitchen and a playground. Six of the 30 units are reserved for residents below 30percent of Average Median Income (AMI) and the remaining units are reserved for residents below 60 percent of AMI.
The project was possible because of Housing Incentive Funds provided by the State of North Dakota, financing through Community Housing Capital and CommunityWorks North Dakota, and Low Income Housing Tax Credits.
Minot Place is a unique project because of the cross-sector partnerships among a nonprofit, CommunityWorks North Dakota, a for-profit, MetroPlains LLC, and the State of North Dakota. The tri-fold partnership leveraged the expertise of all organizations. The State of North Dakota's Housing Incentive Fund helped buy down the cost of the project ensuring the affordability of all 30 units. CommunityWorks North Dakota's NeighborWorks America membership provided access to financing by Community Housing Capital. MetroPlains was instrumental in the property development. Without this unique combination of government, non-profit, and private sector financing and expertise, Minot Place would not have succeeded. And without this collaborative effort, 30 families would not have access to affordable, safe and healthy homes.
In looking to continue to support this project and improve upon the model for future designs, CommunityWorks North Dakota learned that while creating the financial projections, it is critical to obtain written agreements whenever possible on tax assessments from taxing entities. Some of the tax rates based on market-rate housing rather than on low-income housing can derail sound cash projections. Being careful and more astute around all funding resources requirements is critical, as proven with the LIHTC structure. CommunityWorks North Dakota also learned to be collaborative and creative on expertise used, resources and overall financing as necessary assets are scarce. Honing in on these lessons learned will help greatly in moving forward to the next project.
