North Dakota House Bill HB1362

North Dakota 2026 1st Special Session

Caption

A BILL for an Act to create and enact a new section to chapter 6-09 of the North Dakota Century Code, relating to a housing development loan fund; to provide an appropriation; to provide a continuing appropriation; to provide for a transfer; to provide an expiration date; and to declare an emergency.

Summary

HB1362 establishes a housing development loan fund administered by the Bank of North Dakota, aimed at providing loans to local banks to support housing development projects. The fund will allow loans of up to $5 million per county, with a higher limit of $10 million for counties receiving significant oil and gas tax revenues. Loans will carry a low interest rate of 2% and must be repaid by June 30, 2030. The bill includes a one-time appropriation of $10 million from the general fund to support this initiative, with funds being continuously appropriated until the expiration date of the bill.

Impact

The bill creates a new financial mechanism within state law to facilitate housing development, particularly in counties with varying levels of oil and gas revenue. It aims to stimulate local economies by encouraging housing construction, which could impact housing availability and affordability in North Dakota. The establishment of this fund may also influence future legislative approaches to housing finance and development in the state.

Sentiment

The sentiment around HB1362 appears to be mixed, as it ultimately failed to pass. While some legislators expressed support for the need to address housing shortages and promote development, others raised concerns about the long-term sustainability of the fund and the implications of the low interest rates offered. The emergency declaration indicates a sense of urgency among proponents, but the lack of committee support may reflect significant reservations among lawmakers.

Contention

Notable points of contention include concerns about the financial viability of the loan program, particularly regarding the low interest rates and the repayment timeline. Some legislators worry that the fund may not adequately address the housing crisis or may lead to financial strain on the state's resources. Additionally, there are differing opinions on the appropriateness of using general fund money for this purpose, with some advocating for alternative funding sources.