North Dakota committee discusses $5M rural community endowment fund for housing and infrastructure

In a recent meeting of the North Dakota State Legislature's House Appropriations Committee, lawmakers discussed a significant housing bill aimed at addressing the pressing need for diverse housing options in rural areas. The proposed legislation seeks to provide financial support for various types of housing, including senior living facilities and apartments, to meet the unique demands of different communities.

The bill outlines a cost-sharing model where the state would contribute one-third of the total project cost, with the remaining two-thirds sourced from non-state funding. This approach is designed to stimulate local investment and ensure that communities have a stake in the development process. The program is modeled after a successful initiative in South Dakota, allowing North Dakota to leverage lessons learned from its neighbor's experiences.

Commissioner Chris Shelkin from the Department of Commerce emphasized the program's flexibility, stating that it could be integrated with existing local and state housing initiatives. This integration aims to enhance the overall effectiveness of housing development efforts across the state, particularly in areas facing workforce challenges.

During the discussions, committee members raised concerns about the availability of contractors to execute housing projects, highlighting a potential bottleneck in the implementation of the program. Shelkin acknowledged this issue but noted that the focus of the current bill is on preparing infrastructure, which could help reduce overall housing costs.

Another key aspect of the meeting was the introduction of a rural endowment fund, aimed at supporting smaller communities with populations under 1,200. This fund would require local matching contributions to ensure community engagement and investment in local development. The endowment is designed to provide a sustainable source of funding for vital community projects, with an emphasis on local control and decision-making.

Lawmakers expressed concerns about the adequacy of the proposed funding, particularly given the number of small communities that could benefit from the program. The committee discussed the need for a comprehensive approach to ensure that the funding is effectively distributed and meets the diverse needs of rural areas.

As the committee moves forward, the discussions highlight the importance of addressing housing shortages in North Dakota's rural communities. The proposed legislation aims to empower local governments and residents to take charge of their housing needs while fostering collaboration between state and local entities. The anticipated next steps include refining the bill's provisions and addressing concerns raised during the meeting to ensure its successful implementation.