The North Dakota Legislature recently set a $15 million maximum threshold to the North Dakota Housing Finance Agency’s (NDHFA) Housing Incentives Fund (HIF), which is capitalized by contributions from state income and financial institution taxpayers in order to develop affordable multifamily housing. The State Legislature is now also permitting individual taxpayers to contribute to the HIF and receive a dollar-for-dollar state income tax credit in exchange for their contributions. Individuals making quarterly estimated tax payments may use a contribution to offset their estimated payments. NDHFA can issue tax credits to contributors on a first-come, first-served basis until the $15 million maximum threshold is reached. NDHFA has so far committed $11 million to projects under the HIF, which will represent 570 affordable rental units, two-thirds of which are income and rent restricted and will result in projects worth $86 million. However, the agency has only received about $6.8 million in contributions. State lawmakers say that by contributing to the HIF, taxpayers are participating directly in the decision-making process for how state tax dollars are spent and can even target their contributions to specific projects or communities.
Click here to read more about the HIF.
