House approves $30 million housing-infrastructure program to lower home costs

The North Dakota House passed Senate Bill 22-25, establishing a $30 million Housing Opportunity, Mobility and Empowerment program designed to reduce the cost of new homes by funding infrastructure and lot preparation for political subdivisions, tribal governments and economic development corporations.

Representative Murphy, explaining the committee recommendation, said the bill originated from the governor’s affordable-housing initiative. "Originally this came out of the governor's office at a $50,000,000 ask and ... the bill here ... is a $30,000,000 bill," Murphy said. The program allows eligible political subdivisions to invest in infrastructure to prepare areas for new homes, remove dilapidated or unoccupied homes, and provides a rebate to local entities that previously installed infrastructure when a lot is developed and occupied.

Murphy outlined targeted distributions: $6 million for communities with fewer than 5,000 residents; $12 million for communities of 5,001 to 20,000 residents; $9 million for communities with more than 20,000 residents; and $3 million for metropolitan-adjacent rural areas. The maximum award for a community of more than 20,000 was described as $1,000,000. The bill requires reporting to legislative management and the governor by June 30, 20-06, and includes a look-back provision and allocation adjustments after December 31, 20-06, per the committee explanation.

The House gave the bill final passage on a recorded vote of 65 yeas and 28 nays; the bill was declared passed and the emergency clause carried. Committee sponsors said the program aims to lower development costs and promote occupancy of prepared lots.

Votes at a glance: Final passage of Senate Bill 22-25 — 65 yea, 28 nay.

Implementation will require application and award procedures and reporting by political subdivisions to the legislature and governor as specified in the bill language.