Committee hears bill to create $10 million Bank of North Dakota housing development loan fund

Representative Patrick Haddleston (District 1, Williston) introduced House Bill 13 62 to create a $10,000,000 housing development revolving loan fund administered by the Bank of North Dakota, with an emergency clause.

Under the bill as presented, the fund would lend to local banks — up to $5,000,000 per county, with an additional $5,000,000 available for 17 oil‑impact counties — and those local banks would then make loans to North Dakota‑licensed builders. Loan terms described in testimony included up to $50,000 per home (testimony suggested $50,000–$75,000 was under consideration), a 2% interest rate and repayment within five years. The program would be a revolving fund, with loan repayments returned to the fund for future lending; the fund would terminate on June 30, 2030 unless otherwise extended.

Mark Schneider, Williston building official and chair of the Williston Housing Commission, told the committee local builders need working capital for spec homes because required down payments and front‑end costs (concrete, subcontractor deposits) tie up cash. Schneider said local builders often must put 30% down for spec loans and that the proposed program would enable more small builders to build additional homes.

Adrian Cummings of the North Dakota Association of Builders and other witnesses described persistently low inventories in many markets, permitting constraints, high land costs in some cities and variable margins that make small single‑family starts difficult. Protection and Advocacy testified in support, urging that accessibility and transportation considerations be included when communities target housing types.

Kelvin Hulett, chief business development officer at the Bank of North Dakota, told the committee the bank would prefer clearer legislative parameters before implementing the program. He recommended the committee clarify limits on eligible home prices, per‑builder caps, repayment triggers and whether local banks or the Bank of North Dakota would set specific underwriting requirements. Hulett also noted the agency has administered legislatively directed revolving loan programs before but asked for clearer guiding policy language.

Committee members asked about risk transfer, lien positions, personal guarantees for builders, how the program benefits homebuyers (the bill targets supply, not direct buyer subsidies), and whether interest savings would be passed through to purchasers. Testimony outlined an intent to prioritize entry‑level market‑rate housing and to set program parameters after the bill passes via bank‑administered guidelines or a stakeholder committee.

The committee closed the hearing on HB 13 62 without taking a vote; members and the Bank of North Dakota requested more detail on underwriting, caps, repayment timing and whether the program’s benefits would be targeted by price band or geography.