The Senate Appropriations - Government Operations Division meeting on January 15, 2025, highlighted significant challenges regarding housing availability in Rugby, North Dakota. Zach Broadwell, a local resident and employee, shared his personal experience of struggling to find rental housing for his young family after relocating to the area in March 2024. He emphasized that the lack of suitable rental options not only affected his family but also posed a risk to attracting and retaining the target demographic needed for community growth.

Broadwell detailed the difficulties faced by local businesses, particularly the newly established hospital, in filling workforce needs due to housing shortages. He noted that despite the hospital's excellent reputation and staffing culture, many potential employees were deterred by the lack of available housing. This issue extends to local manufacturing plants, which are unable to meet demand due to insufficient staffing, further exacerbated by the housing crisis.

In response to these challenges, Broadwell outlined several initiatives aimed at increasing housing stock in Rugby. He initially explored developing twin homes for resale but found the costs prohibitive even with state subsidies. He then shifted focus to the rental market, seeking private investors to develop properties. However, he encountered resistance, as potential investors preferred immediate cash flow opportunities over long-term gains from rental properties.

Broadwell's current strategy involves collaborating with a nonprofit organization, Affordable Housing Developers, to construct eight row homes for rent. He acknowledged that while this project is a step forward, it still faces financial hurdles, particularly in ensuring that rental prices remain affordable after accounting for construction costs.

Broadwell urged the committee to consider flexible funding options for infrastructure related to housing developments. He argued that traditional infrastructure funding often overlooks essential needs for housing projects, such as sewer and utility connections. He believes that addressing these infrastructure needs is crucial for the success of housing initiatives not only in Rugby but across similar communities in North Dakota.

The meeting underscored the pressing need for innovative solutions to the housing crisis in rural areas, as local economies depend on attracting families and workers to sustain growth and development.