HUD No. 09-CPD-03-ND
Deborah Griswold, Deputy Regional Director
June 30, 2009
DONOVAN AWARDS OVER $4.8 MILLION TO JUMP-START AFFORDABLE HOUSING CONSTRUCTION IN NORTH DAKOTA
Recovery Act funding to stimulate the production of affordable housing units stalled by recession while also creating jobs in North Dakota
WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today awarded $4,860,574 to jump start affordable housing programs in North Dakota that are currently stalled due to the current economic recession. Funded through American Recovery and Reinvestment Act of 2009 (Recovery Act), HUD's new Tax Credit
Assistance Program (TCAP) will allow the North Dakota Housing Finance Agency (NDHFA) to resume funding of affordable rental housing projects across the state while stimulating employment in the construction trades.
"The intended purpose of the American Recovery and Reinvestment Act is to jumpstart the nation's ailing economy, with a primary focus on creating and saving jobs in the near term," said HUD Secretary Shaun Donovan. "The
funding being awarded today is an important step in achieving the goal of putting American people back to work
while at the same time providing quality, affordable housing options for low-income families at a time when it is needed more than ever."
The current economic and financial crises present significant challenges for the construction industry, particularly residential construction. One of the by-products of this crisis has been the freezing of investments in the LIHTC market. Tax credits provide an incentive for investors to provide capital to developers to build multi-family rental housing for moderate- and low-income families across the nation. Since the contraction of the credit market, and
as traditional investors remain on the sidelines, the value of tax credits has plummeted. Consequently, as many as 1,000 projects (containing nearly 150,000 units of housing) are on hold across the country.
"This Recovery Act funding will provide the North Dakota Housing Finance Agency (NDHFA) with critically needed funding to further State and local efforts and financing tools and resources to bring "shovel ready" projects to production, and by closing financing gaps created by the economic crisis and reduced credit pricing," said HUD
Deputy Regional Director Deborah Griswold. The North Dakota Housing Finance Agency will award these TCAP funds
on a competitive basis.
In response, the Recovery Act provides $2.250 billion for TCAP, a grant program to provide capital investments in these stalled Low-Income Housing Tax Credit (LIHTC) projects. HUD is awarding these TCAP grants by formula to state housing credit agencies to complete construction of qualified housing projects that will ultimately provide affordable housing to an estimated 35,000 households nationwide. Since a major purpose of this program is job creation, the Recovery Act establishes ambitious deadlines for expenditure of grant funds and requires state
housing credit agencies to give priority to projects that can begin immediately and be completed by February 16, 2012.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities;
creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the
Internet and espanol.hud.gov.