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Sister bill would create $100 million revolving loan fund to finance long‑term care construction and renovation (HB1619)
Summary
House Bill 1619 would establish a $100 million long‑term care facility infrastructure revolving loan fund, administered by the Bank of North Dakota, to provide low‑interest loans (capped at $10 million per project, not to exceed 50% of project costs) with repayment terms up to 30 years.
Bismarck — The House Human Services Committee heard House Bill 1619, the companion to HB1550, which would create a $100 million revolving loan fund to provide low‑interest loans to nursing and basic care facilities for construction, renovation and equipment upgrades.
Rep. Emily O’Brien (District 42) introduced the bill and described it as the lending companion to HB1550’s guarantee program. The fund would be administered by the Bank of North Dakota and structured as a revolving fund so repayments would be available for future loans. “The fund will be managed by the Bank of North Dakota and will support up to $10,000,000 per project with lower interest loans and favorable terms,” O’Brien said.
Nikki Wagner and Brad DeJong provided technical testimony on program terms. According to testimony, loans would not cover more than 50% of total project costs, may not exceed $10,000,000 per project, and interest rates would be capped at about 1%; repayment terms would not exceed 30 years. DeJong and other witnesses argued that such a program, modeled after an existing hospital loan program, would materially lower borrowing costs, reduce resident rate pressure and enable projects that otherwise could not secure affordable financing.
Provider witnesses — including Trevor Tompkins of Lutheran Sunset Home in Grafton and other rural facility administrators — described aging buildings, land availability limits that make in‑place renovation costly, and construction bids in excess of previous benchmarks (witnesses cited examples of $600–$700 per square foot). Several providers said a combination of USDA financing, local fundraising and a low‑interest state loan would be necessary to bridge funding gaps.
Bank of North Dakota staff described how a revolving loan fund differs from the guarantee fund: the revolving loan would lend directly (or through partner lenders) at a low interest rate and receive repayments back into the fund for future loans. Committee members raised questions about program terms, capitalization, and the legislature’s role in oversight; witnesses said repayments would keep the fund sustainable but the legislature could revisit program funding in future biennia.
