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The success of the CDBG-NDR Resilient Homebuyer program, which provides financial aid to low-to-moderate income Minot households affected by the 2011 flood, has resulted in the continuation of the program with the addition of another $1.5 million after the original $3 million was utilized.
The Resilient Homebuyer program works with Minot real estate brokers and financial institutions to provide gap financing in the form of a forgivable second mortgage up to $60,000 to cover costs needed by Minot LMI households that can demonstrate they were impacted by the flood. The funds can be used for any purpose associated with the purchase of a single family home outside the flood zone. The second mortgage is forgiven on the 15-year anniversary of the recipient living in the house.
The first $3 million assisted 51 households in buying a single family home, with an average second mortgage of $57,000.
Minot Mayor Shaun Sipma noted the program’s success demonstrates that NDR funds can be delivered through innovative uses, which helps Minot residents impacted by the flood while supporting important elements in Minot’s private sector economy.
City Manager Harold Stewart said the program highlights the strategy of the NDR program, which is to make wise investments in the community to promote sustainable growth while addressing lingering effects from the 2011 flood. He also noted that it is an example of the value of collaboration with experienced agencies in the state. The program is supported by the North Dakota Housing Financing Agency, which serves as underwriter for the second mortgages.
It is projected that the additional $1.5 million will help another 25 to 30 LMI households buy single family homes outside the flood zone.