Governor proposes $50 million HOME fund to spur local housing projects; Commerce outlines grant rules

Governor Kelly Armstrong told the House Political Subdivisions Committee that housing shortages across North Dakota constrict workforce recruitment and retention, and he asked lawmakers to approve a $50 million state allotment to create the Housing for Opportunity, Mobility and Empowerment (HOME) fund.

"By using the local and private sector matches, this will create $150,000,000 investment in housing solutions across North Dakota," Governor Armstrong said. He described the proposal as a flexible, locally driven matching program intended to lower infrastructure costs that block new construction.

Chris Shilkin, commissioner of the Department of Commerce, described how Commerce would administer the program and outlined proposed allocations and rules. Under the committee discussion, the bill sets aside three funding buckets: $10 million for communities with populations of 5,000 or fewer; $20 million for communities with populations between 5,001 and 20,000; and $15 million for communities exceeding 20,000—each bucket carrying maximum grant award limits and a reported maximum award of $1.5 million for some applicants and $5 million for designated rural metropolitan areas within 20 miles of a city of more than 20,000 residents. The Commerce testimony also clarifies that grant awards will require non‑state matching funds, and the administration said the practical structure is one-third state funds and two-thirds local/private match in most implementations.

Commissioner Shilkin explained an amendment Commerce proposed after talking with communities: a 10‑year look‑back for existing lots. Under that amendment, communities that previously invested in lots could apply for state assistance to cover up to one third of the historic infrastructure cost for those lots, but the state would release funds after a house was constructed on the existing lot.

Bank of North Dakota President and CEO Don Morgan described a complementary financing tool the state-owned bank plans to offer. Morgan said the bank intends to buy rural loans that are otherwise hard to sell on the secondary market because appraisals and comparables are sparse, which would open more predictable mortgage financing in towns under 20,000 and support demand-side finance alongside the HOME program’s supply-side infrastructure grants.

Multiple local officials and business groups testified in favor of the bill, urging flexibility in eligible uses and parity for smaller towns. Benita Best, community and business development director for Watford City, requested a per-community cap for mid‑tier cities so funding is widely available; Watford City asked for a $3.3 million cap per middle-tier community. Rugby’s Job Development Authority described how lack of housing constrained local employers and recommended that the fund be flexible enough to support per‑lot infrastructure and foundation work, which can run $100,000–$130,000 per unit in some markets.

Committee members asked about whether the program defines “affordable” housing. Governor Armstrong and Commerce witnesses repeatedly said the program’s design intentionally leaves affordability definitions to local communities; the state provides matching infrastructure dollars and leaves programmatic eligibility and pricing to local plans and other financing programs if communities want to require affordability covenants.

No committee vote was taken during the hearing; the committee closed the record after hearing no opposition testimony.