North Dakota lawmakers discuss infrastructure funding for mid-sized communities' growth

The House Appropriations Committee of the North Dakota State Legislature convened on April 16, 2025, to address critical issues affecting mid-sized and smaller communities, particularly in relation to housing development and infrastructure funding. The meeting focused on the challenges faced by towns like Wahpeton and Valley City in attracting builders due to insufficient construction opportunities and the associated risks.

The discussion began with concerns raised about the difficulties mid-sized communities encounter in drawing developers. Representatives highlighted that these areas often lack the scale of available lots and necessary infrastructure, which deters builders from investing. Creative solutions, such as tax incentives and pilot programs, were mentioned as potential strategies to mitigate these risks and encourage development.

Representative Brown brought attention to the existing rural grant program managed by the Department of Commerce, which has shown good utilization rates for slum and blight removal. However, there was uncertainty regarding whether the current funding would be allocated for this purpose, prompting a need for clarification from the Department of Commerce.

Further discussions included the allocation of funds for infrastructure improvements, such as curb, gutter, and sewer systems. Representative Brandenburg expressed concerns about ensuring that financial resources sent to political subdivisions are used appropriately and not redirected away from housing developers. The committee explored mechanisms to guarantee that funds are utilized for their intended infrastructure projects.

Representative Wagner provided insights into the practices in Fargo, where the city typically invests in infrastructure, allowing builders to focus solely on home construction. This approach was noted as a way to lower costs for homebuyers and foster competition among builders, particularly benefiting smaller developers who might otherwise struggle with upfront infrastructure costs.

The meeting concluded with a consensus on the importance of reducing the burden of special assessments on homeowners, as the proposed bill aims to facilitate infrastructure development within residential areas. The committee acknowledged the need for ongoing discussions to ensure that the funding mechanisms effectively support housing growth in mid-sized and smaller communities across North Dakota.