• I FINANCE AGENCY Essential Service Worker housing update North Dakota Housing Finance Agency Division of the State Industrial Commission Jolene Kline, Executive Director Jolene Kline Executive Director INDUSTRIAL CDMMISSHlN Jack Dalrymple Governor Wayne Stenehjem Attorney General Doug Goehring Agriculture Commissioner December 7, 2016 North Dakota Century Code requires that the housing finance agency maintain a register reflecting the number of housing units owned or master leased by cities, counties, school districts, or other employers of Essential Service Workers (ESW). This register must also reflect those entities that are providing rent subsidies for their essential workers. I am here to provide a quarterly report on progress being made in reducing those numbers. North Dakota Housing Finance Agency surveyed public entities and medical facilities on the register in November. Not every ESW employer responded to our request for updated numbers. We made the assumption that the numbers previously reported stood for those entities not responding. Type of Number of Number of Units Respondent Units Owned Master Leased City 27 0 County 33 0 First Responder* 15 0 Medical** 107 21 School Districts 210 0 Total 392 21 *Includes law enforcement, emergency medical services and fire departments ** Includes nursing facilities, hospitals and basic care facilities Number of Rent Subsidies Provided 233 2 14 0 0 249 The overall number of owned units decreased by eight from my last report. The number of housing units owned by school districts decreased by 14; cities decreased by two units; counties decreased one unit; first responders remained the same; and medical increased by nine housing units. While some entities are working to sell off some housing units, a large majority of housing unit owners do not plan to divest themselves of the housing and report that the housing is used to recruit and retain staff. The number of master leased units decreased by 108. As you will notice, only medical facilities continue to master lease units on behalf of their employees. Again, it should be noted that medical facilities are largely non-profit businesses and are not public entities. The number of rental subsidies provided to ESWs increased by 47. The City of Williston makes up all but 19 of the rental subsidies provided. Their numbers increased by 55, but they have 2624 Vermont Avenue • PO Box 1535 • Bismarck, North Dakota 58502-1535 Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free: 800/292-8621 • 800/366-6888 (TTY) www.ndhfa.org [email protected]
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• I
FINANCE AGENCY
Essential Service Worker housing update North Dakota Housing Finance Agency Division of the State Industrial Commission Jolene Kline, Executive Director
Jolene Kline Executive Director
INDUSTRIAL CDMMISSHlN Jack Dalrymple Governor
Wayne Stenehjem Attorney General Doug Goehring Agriculture Commissioner
December 7, 2016
North Dakota Century Code requires that the housing finance agency maintain a register reflecting the number of housing units owned or master leased by cities, counties, school districts, or other employers of Essential Service Workers (ESW). This register must also reflect those entities that are providing rent subsidies for their essential workers. I am here to provide a quarterly report on progress being made in reducing those numbers.
North Dakota Housing Finance Agency surveyed public entities and medical facilities on the register in November. Not every ESW employer responded to our request for updated numbers. We made the assumption that the numbers previously reported stood for those entities not responding.
Type of Number of Number of Units Respondent Units Owned Master Leased
City 27 0 County 33 0 First Responder* 15 0 Medical** 107 21
School Districts 210 0
Total 392 21
*Includes law enforcement, emergency medical services and fire departments
** Includes nursing facilities, hospitals and basic care facilities
Number of Rent Subsidies Provided
233 2
14 0
0
249
The overall number of owned units decreased by eight from my last report. The number of housing units owned by school districts decreased by 14; cities decreased by two units; counties decreased one unit; first responders remained the same; and medical increased by nine housing units. While some entities are working to sell off some housing units, a large majority of housing unit owners do not plan to divest themselves of the housing and report that the housing is used to recruit and retain staff.
The number of master leased units decreased by 108. As you will notice, only medical facilities continue to master lease units on behalf of their employees. Again, it should be noted that medical facilities are largely non-profit businesses and are not public entities.
The number of rental subsidies provided to ESWs increased by 47. The City of Williston makes up all but 19 of the rental subsidies provided. Their numbers increased by 55, but they have
reported that they plan to end these subsidies within the coming year. Currently, they provide $350 per month to employees and will decrease that amount to $150 per month starting January 2017. The North Dakota Highway Patrol makes up 13 of the 19 remaining rental subsidies (averaging $352 per month) and plan to end them by July 1, 2017, or sooner depending on funding. The City of Belfield provides two subsidies of $300 per month and plans to end them by July 1, 2017. The City of Powers Lake pays one subsidy of $500 per month and will discontinue when grant funding ends. Burke County has two subsidies of housing costs over $500 and the Burke County Sheriff's Office has one subsidy of $300 per month which is funded through oil impact grant funding.
The Housing Incentive Fund has been instrumental in helping reduce the burden on public entities that, at the height of the energy development boom, were extremely challenged in recruiting and retaining workforce due to escalated housing costs. Since the institution of the priority for Essential Service Workers in the program in 2013, it has helped develop 450 units of housing that are income- and rent-restricted to ESWs.
As you will recall, the Housing Incentive Fund was first authorized by the Legislative Assembly in 2011 and reauthorized in 2013 and 2015 to help address the housing needs of the state. In the current biennium, the program has or will help create 986 housing units and spur more than $172.5 million in housing construction. In the history of the program, more than 2,324 housing units have been created in 74 projects across North Dakota. The HIF program has leveraged more than $397. 7 million in housing construction activity. Attached to this report, please find a listing of Housing Incentive Fund projects.
I have had the great privilege over the past several years of visiting many of these projects and talking with some of the residents, as I know some of you have as well. Visiting with those workers, families and grandparents who call these apartments home is always an excellent reminder of what the Housing Incentive Fund program is all about - people. While it is easy at times to think only about the numbers I presented today as costs for our local jurisdictions, what we are actually talking about is the people who keep our communities and economy moving
forward.
The Housing Incentive Fund is having an impact in the lives of people across the state. It has been a very effective tool in reducing the number of housing units owned by public entities. It has also been critical in providing affordable options for seniors, people with disabilities, people who are homeless, and workers in all different professions whether Essential Service Workers or in jobs on Main Street - which are also crucial in keeping our communities operating. To help give you a sense of this impact, I'm attaching two of our "Faces of Home" stories on Essential Service Workers in Dickinson and Williston.
The North Dakota Housing Finance Agency remains committed to working with our communities and housing providers to ensure that affordable rental options are available for those who need them.
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Belfield Law Enforcement Housina Belfield HA for Citv of Belfield
A year and a half ago, Hunter Easterling completed law enforcement training and moved from California to Dickinson, ND, to pursue a career as a police officer.
While settling in , Easterling found that finding a home in a growing oil boom town wasn't easy. He lived in an RV park, a hotel and an apartment that
Heights and the development has truly been a Godsend to our police department."
Patterson Heights is supported by North Dakota Housing Finance Agency's Housing Incentive Fund (HIF) and a Law Enforcement Pilot
_ ___ ... _,,, .... Program (LEPP). The
_, • ..,,,'"=• programs are a means to create affordable rental units for essential services
was not quite ideal before Patterson state workers are hired because they Heights Apartments, a new affordable are good candidates looking for a job
workers and households of limited means.
housing development, became available.
Patterson Heights is one of the first developments in North Dakota to set.:iside rental units specifically for law enforcement personnel.
"The place is outstanding; everything is new," said Easterling. "It was such a relief to find a place to live, truly a weight off my shoulders."
In recent years, Dickinson has experienced an influx of energy industry workers and, while new housing units are being added , finding affordable housing is a challenge.
Recruiting and retaining the personnel that provide essential public services is difficult due to increased housing costs and shortages.
Dave Wilkie, administrative captain at the Dickinson Police Department, has noticed significant growth in his home town. "Our department has grown over the last few years and we are adding more and more officers as rieeded," said Wilkie. "Many out-of-
110R1H DAKOTA •
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and their own local police departments are slowing down. "
Created during North Dakota's 2011 legislative session, HIF provides developers of affordable rental units The Dickinson Police Department is
constantly in touch with real estate with low-cost financing . It is agents and apartment managers about potential listings, rental openings or even basements for rent to aid their staff in finding places to live. The city of Dickinson also has FEMA
The Law Enforcement Pilot Program was created to address the challenge of providing affordable rental housing for law enforcement personnel in energy-impacted areas of North Dakota. The program was funded by the approximately $3 million that the State received through the Mortgage Servicer Settlement Fund which originated from a landmark settlement reached
capitalized by contributions from state taxpayers. Contributors to the fund received a dollarfor-dollar state income tax credit for their support.
The North Dakota Industrial Commission asked NDHFA to
with the nation's five major mortgage develop LEPP. The servicers. program is targeted to -------------- creating housing for
trailers law enforcement personnel in
available for officers just until they can communities in energy-impacted find something more permanent.
areas. "Having affordable housing is really
"I like Dickinson," said Easterling. important to our community. There are "The city is growing, 1 like my new many people who don't work in the oil d elo m nt and 1 real! apprec·ate ev p e y 1 fields and they can't afford the high
the housing I'm living in." rents ," said Wilkie. "We currently have
(Original article published in Oct. 201 3.) three officers living in Patterson
2624 Vermont Ave • PO Box 1535 • Bismarck , ND 58502-1535