It’s another income and asset redistribution scheme!
FARGO – A $3 million donation from Gate City Bank to the state’s Housing Incentive Fund will help the organization build about 500 housing units for seniors, service workers and the homeless here and in six other cities.
The fund – which promotes multifamily housing for service workers and low-income residents – was created by the state Legislature in 2011 to offer incentives for building affordable housing.
It provides up to $3 million, or 30 percent of the cost of new apartment and rental units, to reduce developers’ debt so they can set cheaper rental rates.
Lawmakers set aside $35 million for the program earlier this year, all of which has already been committed to projects.
Individuals and businesses that support the projects receive a dollar-for-dollar state income tax credit for their contribution.
Gate City’s donation announced Friday makes the bank the largest single contributor to the housing fund this year. The fund has raised about $11 million in private money since the Legislature’s authorization earlier this year, said Jolene Kline, acting director of the North Dakota Housing Finance Agency, which oversees the fund.
“(North Dakota) is where we were founded and definitely where we’re rooted,” said Kim Meyer, executive vice president of human resources and marketing at Gate City Bank, which is based in Fargo and has 34 branches in North Dakota and Minnesota. “That’s why many of the projects that we chose for this contribution are located in communities that we serve.”
Kline said about 90 percent of the projects in 2011 and 2012 were in western North Dakota’s booming Oil Patch. After the 2013 Legislature renewed the program, 34 projects across the state were approved in June and August.