Posted by Jennifer Feist on 12-14-2017
The Valley City – Barnes County Development Corporation is making $100,000 available to renovate existing multi-family housing structures in the form of local matching dollars to access the Bank of North Dakota’s Flex PACE Program, an interest reduction program.
The Corporation will begin accepting applications January 15, 2018. Funds are available on a first-come/first-serve basis.
Under the local guidelines of the new program, Flex PACE for Multi-Family Housing Rehab, borrowers can access up to $100,000 as a grant through the Bank of North Dakota to reduce interest expense. Local matching dollars of up to $33,333 are available as a loan. For example, based on a 20-year amortization for a $400,000 bank loan, the borrower could see a reduction from 5% to 1% for 10 years with a local match of $33,133. The key is leveraging the Bank of North Dakota. The local loan of $33,133 would be repaid after all Flex PACE funds are fully advanced.
Key elements of the program include a minimum investment of $10,000 per unit, four or more units in a structure, meeting City and/or County zoning/building requirements, “purchase AND rehabilitation” and “rehabilitation only” of existing multi-family structures. Purchase of real property alone is not an eligible use of the Program.
The Multi-Family Housing Rehab Program was launched after seeing tremendous results from the Flex PACE for Service/Retail businesses and Flex PACE for Affordable Multi-Family Housing. The Corporation made $1.25 Million available through its own resources to help these sectors with 34 projects to date accessing over $3.6 Million in grant funds through the Bank of ND. A total of 28 service/retail businesses were assisted and 6 multi-family projects creating 172 new apartments.
Thirteen projects including two multi-family projects creating 14 apartments in Barnes County plus three child care centers creating over 100 new slots were assisted with City and County economic development funds.
These 50 projects have had a significant impact on the community and directly support job creation.
Launching Flex PACE for Multi-Family Housing Rehab underscores the Development Corporation’s commitment to the community. We are concerned about quality of place, capturing the benefit of economic development investments and our ability to attract and retain talent. Our goal is to improve existing multi-family housing units as part of our economic development efforts to create jobs and recruit and retain employees. Investments will improve the community’s long-term outlook. We want to create the best possible conditions upon which community growth can occur. Capturing the benefits of economic development takes work and investment. Nothing happens automatically.
For more information about Flex PACE for Multi-Family Rehab (or other programs), contact: Jennifer Feist, Director of Development, 701-840-7820 or firstname.lastname@example.org.
Valley City - Barnes County Development Corporation
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Valley City ND 58702
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