PUBLIC MEETING NOTICE:
Tuesday, February 11, 2020; 12:00pm Central Time
Commissioners Board Room, McKenzie County Courthouse, 201 5th St NW, Watford City
PURPOSE: discuss statistics from 2019 regarding the program, and solicit comment on if the program were to continue if there should be any changes to it.
Some changes that have been suggested include:
Allow for manufactured homes that are built to IRC codes and meet the JDA building requirements
· Increase max city lot size from 10,000 square
feet to one acre to allow for infill
Completion of foundation increased from 30 days
to 60 days
Provide more flexibility in the house sale price
while still taking advantage of the maximum subsidy amount
Written comments can be submitted via email to email@example.com by noon on Feb 12.
McKenzie County Job Development Authority Housing Development Subsidy Program
Inadequate supply of quality, affordable housing is
currently a hindrance to the continued economic development of McKenzie
County. Most industries in our county —the largest of which is the petroleum
industry—are reporting a workforce shortage and many attribute a lack of
quality, affordable housing as a contributing factor in attracting and
retaining their needed workforce. In 2018 the petroleum industry provided over
$78 million to McKenzie County in gross production taxes; and of the 2018
property tax monies levied, over 83% was paid by pipelines and commercial
This pilot program incentivizes the construction and
sale of quality, affordable housing in McKenzie County by providing a development subsidy up to $50,000 per single-family house to offset infrastructure costs for
qualifying housing projects.
Interested developers will submit application
(see link below) at the same time as, or after, the building permit.
Qualifying property must appraise above
the current FHA Mortgage Limit (2019 being $314,827; 2020 being $331,760). The purchase price will not exceed $5,000 above
the appraised value. For applications approved in 2019 and house closing happening in 2020, applicants can use either the 2019 or 2020 FHA limit as the floor. For applications approved in 2020 and house closing happens in the same year, the 2020 FHA limit will be the floor.
The homebuyer's loan amount cannot exceed the FHA Mortgage Limit. The Development Subsidy amount will be adjusted based on the
purchase price of the house and if it is built with complete or limited
infrastructure as defined as
gutter, sidewalk, municipal water, municipal sewer—up to $50,000 per house
water and municipal sewer in a city; or in a county subdivision that has
improved gravel road and septic—up to $25,000 per house
No more than $25,000 will be awarded to a house
with limited infrastructure, and no more than $50,000 will be awarded to a
house with complete infrastructure.
The homebuyer will give a 5-year lien to the
JDA for the Development Subsidy amount that will be forgivable so long as the property
remains their primary residence during that time.
Total funds expended during
the pilot stage will not exceed $1,000,000. Accepted applications must complete the basement/foundation within 30 days of application acceptance and finish the house within 12 months of application acceptance. It is the goal of the program to have a variety of sellers and areas of the county to be impacted with this program.
Construction of the house must have started on or after January 1, 2019.
funds become available at closing. Checks are cut twice a month--the first and third Tuesday of
the month. In order for funds to be awarded, the appraisal must be submitted and application's qualification requirements must be verified by a city/county inspector. Check requests must be made by noon the Tuesday before.
The McKenzie County Job Development Authority cannot advise the parties of potential tax implications the program may create. It is ultimately the responsibility for the parties involved in the transaction to understand any income tax implications that may arise out of the program.
Probable Impact: construction
and sale of 20-30 stick-built single family homes in McKenzie County in
Private Mortgage Insurance Requirements:
***As of December 3, 2019, $450,000 of the $1,000,000 budget has been allocated. ***