Inadequate supply of quality, affordable housing is currently a hindrance to the continued economic development of McKenzie County. This 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 (2021 being $356,362). The purchase price will not exceed $5,000 above the appraised value. For applications approved in 2020 and house closing happens in 2021, applicant can use either the 2020 or 2021 FHA mortgage limit as 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
- Complete—curb, gutter, sidewalk, municipal water, municipal sewer—up to $50,000 per house
- Limited—municipal 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.
- Accepted applications must complete the foundation within 60 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. Ingress/egress to basement must be finished to nearest facing bedroom wall with all other unfinished space accessible through interior door for any houses that are using bedroom(s)/bathroom(s) in the basement to meet the 3 bedroom/2 bathroom minimum requirements.
- The 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.
- This program is designed for an arm’s length transaction, with a willing buyer and willing seller–“self builds” are not eligible.
Funding update: As of January 1, 2021, $1,550,000 has been allocated leaving $450,000 remaining to be allocated.
Private Mortgage Insurance Requirements:
To find other homeownership programs consider visiting the programs webpages of ND Housing Finance Agency and the Lewis and Clark Development Group.