Committee backs establishing revolving loan model and design funds for fourplex supportive housing; appropriation deferred

Members of the Appropriations — Human Resources Division agreed to advance amendments that would create a two-part approach to incentivize construction of four-unit supportive-housing residences: a design consultation appropriation and a new revolving loan model. The committee reached consensus to move sections 7 and 8 forward and to leave the proposed $3.3 million State Investment Fund transfer in section 9 for later consideration.

Senator Mather guided the committee through the amendment package. “Section 7 gives $200,000 to the Department of Human Service, Health and Human Services, to do some preliminary design consultation work for designing such a fourplex,” he said, and described section 8 as creating “this chapter of, into the century code, which replicates what we have for hospitals” to establish a revolving loan fund available to developers at 2% interest. Section 9 proposed transferring $3,300,000 from the State Investment Fund (SIF) to capitalize the Bank of North Dakota loan program; Mather recommended adopting sections 7 and 8 but omitting section 9 from the committee amendment so that conference discussions could determine the need and source of any appropriation.

Committee members asked how rent subsidies would operate, who would own the buildings and what term lengths and repayment schedules would look like. Mather and other speakers noted several possibilities: rent subsidies could come from federal housing programs, the Department of Human Services, or the housing finance agency; private developers could own and operate the buildings; and loan repayment schedules in the proposal were capped at 20 years, a term some senators said might be too short for project viability.

Multiple witnesses and staff attended or provided information about two different project models; committee members urged further work with the Department of Human Services and housing experts during the conference. The committee also discussed Manchester House as an example of prior facility-financing approaches, while acknowledging that services provided inside a building and ownership structures are distinct policy questions.

Formal action: Senator Mather moved for a “due pass” on sections 7 and 8, and the committee registered consensus to advance those sections while leaving the proposed section 9 appropriation for conference negotiation. Committee staff said they will convene stakeholders before the conference committee to refine financing, ownership and subsidy details.

Next steps: The committee instructed staff and interested members to continue meetings with the Department of Human Services and other stakeholders and to bring refined language and any funding recommendations to the conference committee.