Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Long Term Care Loans topic
No spam. Unsubscribe anytime.
Appropriations committee creates long-term care loan program, reduces initial funding and sets 2% rate in HB1619
Summary
The Senate Appropriations Committee on Thursday approved an amendment to House Bill 1619 establishing a Bank of North Dakota-administered loan program for long-term care facilities, setting a 2% interest rate, a $10 million per-project cap and repayment terms up to 30 years.
The Senate Appropriations Committee voted Thursday to amend and advance House Bill 1619 to create a state-backed loan program for long-term care facilities administered through the Bank of North Dakota. The committee adopted the amendment on a recorded vote of 14-2 and later gave the bill a due-pass recommendation by a recorded vote of 16-0.
Under the amendment the committee debated, section 1 creates a new long-term care loan program that provides up to $10,000,000 per project, with a project cap not to exceed 50% of projected costs, an interest rate set at 2 percent and repayment terms of up to 30 years. Committee discussion indicated the 2 percent rate was chosen to align with other state revolving loan programs administered through the Bank of North Dakota and to increase the fund’s revolving return relative to a 1 percent rate.
Section 2 amends an existing medical-facility loan program to change the interest rate language and related terms; committee counsel clarified the amended criteria would apply to loans made going forward and would not alter existing loans. Committee members discussed readiness of prospective projects, identifying several potential applicants in areas including Williston and Grafton; members noted the timeline for construction depends on utilization studies, financial plans and federal requirements, so many projects may not be shovel-ready immediately.
Debate covered the program’s initial size: sponsors proposed lowering the initial authorization from $50,000,000 (as originally drafted in committee discussion) to $35,000,000, and lawmakers questioned whether that amount could be spent within the intended two-year window. Proponents said the lower figure was more likely to be deployable and that the program could be reauthorized later if demand materializes.
The recorded vote on the amendment passed 14-2; the transcript records two named “no” votes during the roll call. The committee then approved a due-pass recommendation on the bill as amended by a recorded vote of 16-0. The committee assigned a carrier to carry the bill to the floor.
