Bismarck to Apply for Low Income Housing Grant on KFYR-TV North Dakota's NBC News Leader

Bismarck to Apply for Low Income Housing Grant |

Video

Kevin Gribble

7/14/2009

Homeless advocates say North Dakota`s homeless rate is increasing because of the recession, and they say a lack of affordable housing is only making the problem worse. But more low income housing could be coming to Bismarck.

At Tuesday`s meeting, Bismarck city commissioners gave the go ahead to apply for a $2.1 million federal grant for the Neighborhood Stabilization Program, but the project does have some risks.

Right now in Burleigh County, there is a 6-10 month waiting list for rental vouchers for low income properties.

"We`re definitely in support of more housing across our community because there is a need," says Missouri Valley Coalition for Homeless People executive director Tina Grumbo.

The $2.1 million federal grant for the Neighborhood Stabilization Program would help. The money would be used to buy vacant or foreclosed properties for at least 1% less than their appraised values and then redevelop them into low income housing. If the project moves forward, it could yield an additional 5-10 low income properties, and some of those properties could have up to a dozen units.

But there is some risk to the city. 25% of the grant money must be used to buy foreclosed properties. If that requirement is not met, then the city will have to repay the grant money.

Commissioner Connie Sprynczynatyk says, "This is a decent risk to take on behalf of a population that frankly needs some help."

But commissioner Steve Schwab asks, "Normally properties like this developers will come in and turn them around, why are we going to waste our time on it?"

"A private developer is not likely to get into a project like this," answers Sprynczynatyk.

In the end, commissioners voted unanimously to allow the project to move forward. Now all that stands in the way are the banks. The city must negotiate a discount for the properties, which will not be easy in a city where real estate prices are still going up.

City planner Susan Redman explains, "The local banks will probably be the easiest if they have foreclosed properties, but there are other banks where their headquarters are in California or New York that will take more time and diligence on our part."
It`ll take 2-3 weeks to get the applications for the Neighborhood Stabilization Program ready, after that the city will soon receive the money.

COMMENT ON THIS STORY

BACK TO NEWS | BACK TO REGIONAL STORIES

Search News Stories

Sister Stations: KMOT in Minot, KQCD in Dickinson, KUMV in Williston