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HB 1362

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.

69th Legislative Assembly (2025-26) Introduced by Brad Bekkedahl and 8 co-sponsors

Establishes a temporary $10 million Housing Development Loan Fund, administered by the Bank of North Dakota, to provide 2% loans via local banks to boost housing development.

Second reading, failed to pass, yeas 8 nays 85
0
WeVote Research Nonpartisan
Bill Summary · HB 1362

Summary – HB 1362 (North Dakota)

A bill to create a Housing Development Loan Fund administered by the Bank of North Dakota; to appropriate and transfer one‑time funding into that fund; to provide loan terms, administrative provisions, a sunset/transfer back to the general fund, and to declare an emergency.

Main purpose and intent

The bill establishes a dedicated, state‑administered loan fund to provide low‑cost capital to local banks so they can offer housing development loan programs that assist housing builders and developers in their counties. The goal is to stimulate local housing construction by leveraging local banks as intermediaries.

Key provisions

  • Creates a new special fund in the state treasury titled the "housing development loan fund" and gives the Bank of North Dakota (BND) responsibility to administer it.
  • One‑time appropriation/transfer: $10,000,000 is appropriated from the general fund to the housing development loan fund. The Office of Management and Budget must transfer the funds during the period beginning on the bill’s effective date and ending June 30, 2027.
  • Loan terms to local banks:
    • Per‑county caps: loans to local banks in each county may not exceed $5,000,000 in total. Exception: in counties that receive more than $5,000,000 per year in oil & gas gross production tax revenue allocations, the per‑county cap is $10,000,000 in total.
    • Interest rate: 2 percent.
    • Repayment deadline: all loans must be repaid by June 30, 2030.
  • Fund receipts and administration:
    • All principal and interest payments on fund loans are deposited back into the housing development loan fund.
    • BND may use a portion of interest on outstanding loans as a servicing fee to cover administrative costs and for an audit; this servicing fee may not exceed 0.5% (one‑half of one percent).
    • The fund is a continuing appropriation to the Bank for purposes of administering the program.
    • BND is authorized to adopt policies and guidelines to administer the program.
  • Termination/transfer: BND must transfer the balance in the housing development loan fund to the general fund on June 30, 2030.
  • Duration and emergency: the Act is effective through June 30, 2030 (after which it is ineffective) and is declared an emergency measure.

Who is affected

  • Bank of North Dakota: will administer the fund and manage loans to local banks.
  • Local banks: eligible to receive low‑interest loans from BND to establish local housing development loan programs.
  • Housing builders and developers: potential beneficiaries through new or expanded lending programs offered by participating local banks.
  • Counties: particularly those with large oil & gas revenue allocations (eligible for higher per‑county caps).
  • State general fund: provides the initial $10 million transfer and will receive any remaining fund balance on June 30, 2030; carries downside exposure if loans default.

Timeline and procedural highlights

  • One‑time transfer window for the appropriation: effective date through June 30, 2027.
  • Loan repayment and fund wind‑up: all loans repayable by June 30, 2030; fund balance must be transferred back to general fund on June 30, 2030.
  • The bill is drafted as an emergency measure (accelerates effective date upon enactment).

Potential impacts / considerations

  • Positive: provides targeted, low‑cost capital aimed at increasing housing supply by enabling local banks to expand construction and development financing at favorable rates.
  • Fiscal/risk considerations: $10 million initial capital is modest; the general fund assumes initial outlay and potential downside if loans default. The 2% interest and short repayment horizon (to 2030) are borrower‑friendly but may constrain program scale. Administrative fee cap (0.5%) limits BND’s recovery of program costs.
  • Sunset/transfer provision ensures the program is explicitly temporary and that remaining funds revert to the general fund.

If you’d like, I can prepare a one‑page fact sheet (bullet points for public distribution) or draft potential amendment language to adjust caps, term length, or risk protections.

Compiled from official sources — confirm details with the bill’s official record.

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