North Dakota Housing Finance Agency streamlines management to boost homeownership services

During the recent Senate Appropriations meeting on January 29, 2025, the North Dakota Housing Finance Agency (NDHFA) highlighted significant changes aimed at improving efficiency and expanding homeownership opportunities in the state. The agency's leadership, including Homeownership Division Director Brandon Detloff, presented a streamlined management structure that consolidates senior management under the Community Housing and Grants Management division. This restructuring is expected to enhance operational efficiency and better serve the community.

Detloff detailed the agency's homeownership process, emphasizing the issuance of mortgage revenue bonds as a key funding mechanism for affordable housing initiatives. In 2024, NDHFA sold over $500 million in these bonds, facilitating nearly 2,000 loans, marking the second-highest production in the agency's history. The agency's participation in the mortgage market has grown, with a 30% increase in participating lenders since 2020, allowing them to capture approximately 80% of the state's market share.

A critical point raised during the meeting was the agency's commitment to first-time homebuyers, as they are the primary provider of down payment assistance and below-market interest rates in North Dakota. Detloff noted that the agency's delinquency rate stands at a low 0.35%, significantly below national and state averages, showcasing their effective management of riskier loans typically associated with first-time buyers.

However, the agency faces challenges, particularly in staffing. Detloff indicated that they are projected to be short five full-time employees (FTEs) by the end of the 2027 biennium, which could impact their ability to manage the growing portfolio effectively. The agency is currently requesting funding for only two additional positions this session, raising concerns about potential penalties from federal regulators if they fail to meet compliance standards due to understaffing.

The discussions underscored the NDHFA's proactive approach to enhancing homeownership while navigating the complexities of federal regulations and market demands. As the agency continues to expand its services, the outcomes of these initiatives will be closely monitored by state leaders and stakeholders in the housing sector.