Reports & Publications

Grand Forks, North Dakota: Affordable Housing Incentives

In 1997, devastating floods destroyed more than 800 homes in Grand Forks. Since then, the city has undertaken an aggressive rebuilding program focused on affordable housing. Local leaders recognized there is no single solution and created a “tool box” of incentives to stimulate the construction of affordable homes including an affordable housing “infill” program and the establishment of “affordable housing districts.” In exchange for special concessions on tax assessments and land standards, developers in these areas agree to build higher density, smaller entry-level homes. In the years prior to these efforts, only 14 affordable units were built in the entire city. Since 2002, of the 106 homes built in the affordable housing districts, over 57 percent meet affordable housing target prices.

Specific Actions Taken:

• Grand Forks waived a required 50 percent developer's contribution for infrastructure.

• Local tax authorities deferred special assessments imposed on buyers of affordable housing.

• City officials granted a two-year property tax exemption for the first $75,000 of a home's assessed value.

• Likewise, the city granted a three-year property tax exemption for increased values resulting from rehabilitation.

• Grand Forks reduced special assessment rates.

• The city relaxed land development requirements (i.e. narrower road widths) and reduced right of ways.

• To encourage more development of affordable housing, local leaders reduced previous lot size requirements.

• Developers seeking zoning variances now find a more flexible, relaxed application process.

Grand Forks, North Dakota is a 2005 recipient of the Robert L. Woodson Award.

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