Dacotah Ridge project pursues Flex PACE loan
Affordable Housing Developers Inc. is partnering with Stark Development Corp. to pursue a Flex PACE loan for its Dacotah Ridge housing project. AHD has requested $531,070, but agreements have not yet been completed. Construction continues on the ...
Affordable Housing Developers Inc. is partnering with Stark Development Corp. to pursue a Flex PACE loan for its Dacotah Ridge housing project.
AHD has requested $531,070, but agreements have not yet been completed.
Construction continues on the 16-unit apartment building at 580 Eight St. SE, Andrea Diede, AHD executive director said.
"We've been involved in this project for quite some time now, and additional costs have crept up," she said. "We had kind of a hard winter, really rigid temperatures, so that added costs to our original scope and budget."
AHD provides community housing for people with disabilities and low-income seniors.
"Affordable housing doesn't need to be just for very low income," Diede said. "Even people making as much as 80 percent of the area median income can qualify in some instances for affordable housing."
The Dickinson-based nonprofit purchased two buildings from The Arc of Dickinson in 2017 for the project.
An eight-unit building at 580 Eighth St. SE cost roughly $1.3 million to acquire and renovate.
The 16-unit building, though, will cost roughly $4.3 million.
The building had to be demolished and reconstructed due to structural issues.
The project is receiving Low Income Housing Tax Credits and Housing Incentive Fund dollars through the North Dakota Housing Finance Agency, and U.S. Department of Housing and Urban Development HOME Investment Funds through the North Dakota Department of Commerce.
The previous winter added to those already increased costs, Diede said.
"There were extra fuel costs," she said. "We had to bring in extra ground heaters to keep the ground warm enough so the contractors could put in the concrete foundation and footings."
AHD met with Bank of North Dakota about a Flex PACE loan. The bank provides 65 percent of the amount needed, and a community partner provides 35 percent.
The SDC board, at their March 19 meeting, approved partnering with AHD.
"We're super excited," Diede said. "It is nice to have the community support and have people recognize the need for this project."
SDC Executive Vice President Ryan Jilek described the project as a rewarding one.
"The need for affordable housing in Dickinson is still a pressing issue," he said. "The residents that were previously housed in this facility were displaced when the building was deemed uninhabitable. This new facility will restore their quality of life and bring them back to a new home."
Diede anticipates the Dacotah Ridge housing project being completed in July.