North Dakota committee discusses $100M loan fund for long term care facilities

A significant discussion unfolded during the North Dakota Senate Appropriations meeting on April 7, 2025, focusing on the financing of long-term care facilities. The committee explored a proposed open application process for funding, which would involve the Long Term Care Association in reviewing applications and making decisions on project viability.

Key insights emerged regarding the financial landscape for long-term care facilities. Currently, the market rate for loans stands at approximately 7.5%, a figure that poses challenges for facilities seeking to upgrade or replace outdated structures. The proposed funding program would offer loans at a reduced rate of 2%, significantly lowering the cost of capital for these essential projects.

Brad DeYoung, a financial consultant for senior living organizations, emphasized the urgency of this initiative. He noted that many facilities in North Dakota are over 60 years old and unable to meet modern care standards. The high cost of construction in the state further complicates efforts to improve these facilities. DeYoung highlighted that the proposed $100 million revolving loan fund could quickly be utilized by several major projects currently in the pipeline.

The committee also discussed the underwriting process, which would be managed by the Bank of North Dakota in collaboration with lead financial institutions. This approach aims to ensure that projects are financially viable, with a focus on demonstrating long-term sustainability.

In conclusion, the proposed funding initiative represents a critical step toward modernizing North Dakota's long-term care infrastructure. By lowering financing costs, the state aims to support facilities in providing better care for residents while addressing the pressing need for updated facilities. The committee's discussions underscore a commitment to enhancing the quality of care in the state, with anticipated outcomes that could reshape the landscape of long-term care in North Dakota.