Right At Home
By Susanne Nadeau
Grand Forks Herald
NORTHWOOD, N.D. — Dale and Audrey Braaten’s home was destroyed by last August’s deadly tornado. The storm lifted the house off its foundation, creating cracks in the home’s walls and making it structurally unsound, Dale Braaten said. Ultimately, water puddled in the basement, and mold covered everything. The Braatens said their home at 309 Third Ave. was unlivable. So, the couple, with three of their children, moved in with their adult son in nearby Hatton, N.D. But while the family longed to quickly get back into a home of their own in Northwood, they struggled to find suitable financing. “I was ready for a nervous breakdown,” Audrey Braaten said. Her anxiety — and that unlivable house — were nowhere in sight Tuesday. The damaged house has been replaced by a new modular house that’s been occupied by the Braatens since before Christmas. “We’re in the same spot, with the same neighbors,” Audrey said. “It just wasn’t the same in another town.” Thanks to a DREAM Fund loan program, 24 people will continue to call this town home, according to Mike Anderson of the North Dakota Housing Finance Agency. The families represent about $650,000 in new community investment, Anderson said.
Hurdles jumped
Anderson joined Sen. Kent Conrad, D-ND, Northwood city leaders and other officials from participating non-profit agencies outside the Braaten home Tuesday to ceremoniously dedicate the new or rehabilitated homes and present American flags to four Northwood families and one individual. Adam Flaagan said Northwood is “a good place to call home.” Flaagan, 25, was living in an apartment complex destroyed by the Aug. 26 tornado. He has been living in Hatton. On Tuesday, he signed off on a loan for his first home, an existing Northwood dwelling that survived the devastating storm. “I probably would not have gotten my home, but for (the program),” said Flaagan, a volunteer firefighter who also works in Northwood. “They went through a lot of hurdles to get this for me.” Flaagan just signed off on the home loan Tuesday, he said, so he hasn’t moved into his home yet. But he’s ready to move back. “I’m really excited,” he said.
CommunityWorks
According to the Braatens, finding a suitable loan to get back on their feet was a nightmare. They found a modular house, but the original loan they sought would have provided money in installments, rather than upfront. The latter was necessary, they said, to move their new house onto their old home’s foundation. “We had the house, and we had no money,” Audrey Braaten recalled. “I tell you, I was ready to collapse.” That’s when she checked to see whether her family would qualify for the DREAM Fund home loan program offered by CommunityWorks North Dakota. The nonprofit organization’s mission is to help revitalize communities by providing needy state residents with affordable housing and development opportunities. CommunityWorks was recruited by the state Housing Finance Agency to help provide lending assistance for Northwood’s recovery. The DREAM Fund helps individuals and families with down payment and closing cost aid, rehabilitation and emergency repair assistance, mortgage assistance and help with other financing, such as construction bridge loans.
CommunityWorks gained extra lending muscle with help from Conrad, who secured financial commitments from two national nonprofit organizations — Enterprise Community Partners and NeighborWorks — to make the loans readily available to qualified applicants. The program worked wonders in Northwood, according to the people who used it. “They were right there for us,” Audrey Braaten said. And now, the Braatens, with a new home and two added foster children, are back on Northwood’s Third Avenue — right where they want to be.


September 25, 2007
HOUSING LOAN FUND FULFILLS RURAL DREAMS
By JILL SCHRAMM
Staff Writer
Minot Daily News
Many people were skeptical when North Dakota CommunityWorks launched its DREAM Fund in 2001 to bridge the gaps in North Dakota's housing finance system. A growing loan portfolio expected to add nearly $4 million in new business this year is erasing that skepticism, said executive director Paul Rechlin of Bismarck. "It's been a struggle, but I think we have been successful," said Rechlin, who spoke Monday to county officials from northwest North Dakota at an Elmer Jesme Conference of Counties meeting in Minot.
The DREAM Fund began in August 2001 as a way to address housing needs in rural communities. Since that time, the fund has loaned about $12.3 million to 437 households. It has leveraged another $24.8 million for single-family home purchases and repairs. CommunityWorks, which assists in single- and multi-family projects, has had a $48.6 million impact on the overall housing market since 2001. Thirty counties, including Ward, participate in the DREAM Fund. Nine other counties have limited access to the fund. Borrowers obtain access to the DREAM Fund through banks if local participation is present. Participation requirements call for a half a mill in property tax for three years from the county, $1 for each meter served from rural electric utilities and $100 per $1 million in assets from banks.
The goal of the program is to spur home construction in communities where financing is difficult. Borrowers can be of any income level. "The problem isn't that they can't afford a loan. The problem is they can't get a loan. They usually aren't low income. Their credit may be excellent," Rechlin said. The problem is that houses cost more to build in rural areas than they are worth on the market. That makes the houses unattractive to companies that buy mortgages from banks, he said. To address that problem, the DREAM Fund provides a secondary mortgage to cover the difference between a home's value and the construction cost. "We are unusual in that as a second mortgage lender, we will never charge more than the bank charges on its first mortgage," Rechlin said. When banks help select reliable borrowers, it becomes reasonable to set rates based on affordability rather than risk, he said. Over the years, the fund has written off only about $30,000 as bad debt. "North Dakotans will pay back if given the opportunity," Rechlin said. "We structure our loans so they are affordable to borrowers."
The DREAM Fund also acts as first mortgage lender and has been able to attain working capital by selling mortgages to other entities. The North Dakota Housing Finance Agency recently agreed to buy up to $1 million of DREAM Fund loans. The DREAM Fund provides loans for down payment and closing costs, rehabilitation and repairs, emergency repairs, construction costs and for income and appraisal gaps.
In Ward County through August 2007, the DREAM Fund has given 22 loans totaling $409,860. Leveraged funds added nearly $1.2 million. Eighteen of the loans were used in Minot, while two families in Sawyer and one each in Kenmare and Surrey benefited. The figures include a $100,000 multi-family rehabilitation loan in Minot. The program is seeing an increased need for loans and for larger loans, Rechlin said. As the value of housing has gone up, the average loan has risen from about $10,000 to $15,000 or $20,000. But, the program made a pledge not to turn away any qualified buyer because of lack of fund resources, Rechlin said. "There's been times we have been challenged. It's been tough. It's been tight," he said. "We have been very fortunate. We have had good support."
March 7, 2007
NORTH DAKOTA HOUSING AGENCY RECOGNIZES AFFORDABLE HOUSING CHAMPIONS
BISMARCK – The North Dakota Housing Finance Agency (NDHFA) recognized six of their housing partners as Champions of Affordable Housing at the 2007 Statewide Housing Conference.
“Without the assistance of these partnering organizations, the staff at NDHFA would not be able to provide affordable home loans, ensure the availability of affordable rental units or offer a hand to community leaders struggling to meet the housing needs of their local population,” said Agriculture Commissioner Roger Johnson, who presented the awards on behalf of the Industrial Commission.
Receiving Lender Awards:
Lender awards are based on participation in the Agency’s homeownership programs and involvement in locally sponsored affordable housing projects and events.
Affordable Housing Developers, Inc., a multi-regional Community Housing Development Organization based in Bismarck, received the Housing Production Award. Projects completed by the nonprofit developer in 2006 included six single-family units at Trail West, a 10.2 acre subdivision in Mandan; construction of 24 rental units in Dickinson; the acquisition and rehabilitation of 20 rental units in Rugby; and provision of a low-interest loan to help Berthold Housing Corp acquire, move and rehabilitate four rental units.
Lynn Fundingsland of Fargo, ND, was recognized with a Leadership Award for his dedication to providing affordable housing opportunities and creating awareness of housing issues in his community. Fundingsland heads the Fargo Housing and Redevelopment Authority and non-profit developer Beyond Shelter, Inc.
“Lynn’s advocacy is at the forefront of his activities everyday, and when faced with challenging housing projects or fear of opposition, you will often hear him say ‘if we don’t do this, who will?’” said Johnson.
NDHFA began recognizing Champions of Affordable Housing in 1995. The awards to real estate agents are presented during their annual conference in September.
For more information on the awards or other NDHFA programs, contact the Agency at (701) 328-8080, (800) 292-8621, (800) 366-6888 (TTY) or www.ndhfa.org.
The Industrial Commission of North Dakota, consisting of Governor John Hoeven, who serves as chairman, Agriculture Commissioner Roger Johnson and Attorney General Wayne Stenehjem, oversees the NDHFA.
January 12, 2007
|
Fargo, N.D. Bank of the West is investing $250,000 in
the CommunityWorks North Dakota (CWND) DREAM Fund, the bank
announced today. The bank's investment will provide
assistance to North Dakotans to purchase, repair, and build
housing through Bank of the West branches in Fargo,
Cooperstown, Dickinson, Beach, Lidgerwood and Wahpeton.
Brad Rasmus, Executive Vice President and Midwest Division Executive for Bank of the West, said the bank is "proud to help North Dakotans achieve their dream of homeownership and improve their quality of life. We are committed to the communities we serve and are looking forward to filling the gaps that occur in residential financing, including appraisal gaps, downpayment and closing costs, and other mortgage financing for purchase or rehabilitation." Bank of the West operates four branches in Fargo, and one branch in each of the communities of Cooperstown, Dickinson, Beach, Lidgerwood and Wahpeton. Bank of the West mortgage loan originators have attended training sessions sponsored by CWND in order to maximize opportunities for North Dakotans who qualify for funding. "The DREAM Fund provides financing that traditional lending programs cannot provide, and it is not limited to low income borrowers," said Paul Rechlin, Director, CWND. The DREAM Fund has provided 423 loans and more than $9.7 million in financing since it began lending in August 2001. It has helped to contribute to more than $31.1 million in residential financing across the state, making possible $9.8 million in construction. "Bank of the West's generous gift will help enable us to continue to improve the standard of living and quality of life for North Dakotans," said Rechlin. About Bank of the West’s Community Support: Bank of the West is committed to supporting nonprofit organizations to help improve the social and economic health of the areas it serves. As a result of Bank of the West's growth into new states and markets in 2005, the bank expanded its community support plan to provide $75 billion in loans, investments, contributions and services to lower income individuals and small businesses, companies in lower-income areas and community-based organizations throughout the bank's markets. The expanded goal extends through 2015. |
WELLS FARGO CHALLENGE GRANT RAISES $277,292
TO HELP LOW-INCOME HOME BUYERS IN FARGO
FARGO, N.D., Jan. 2007 – The Wells Fargo Housing Foundation (WFHF) today announced its 2006 Focus Communities challenge grant resulted in a total of $277,292 in contributions that will help more than 20 low- and moderate-income Fargo families achieve the dream of home ownership.
From June through November 2006, WFHF contributed $1 for every dollar raised by CommunityWorks North Dakota — up to $50,000 — for its DREAM fund home ownership assistance program. During the Focus Communities campaign, CommunityWorks raised $227,292 in contributions.
“A contribution to help more Fargo families become homeowners is one of the best gifts we can make,” said Jeff Thomas, Community Banking president for Wells Fargo in Fargo, Moorhead and West Fargo. “Successful communities have high levels of home ownership. Through Focus Communities, we are helping CommunityWorks begin its efforts in Fargo to increase home ownership opportunities for low- and moderate-income families, and strengthen our communities.”
CommunityWorks is using Focus Communities contributions to launch its DREAM fund in Fargo — helping low- and moderate-income families purchase or repair their homes, through down payment and closing cost assistance and home improvement assistance programs. Started in Bismarck, the DREAM fund is now available in 29 North Dakota counties and on a limited basis in 9 additional counties.
Focus Communities challenge grant
The Focus Communities challenge grant is designed to increase homeownership opportunities for low- and moderate-income families in communities where less than 5 percent of the available housing is “affordable” — defined as housing where a low- to moderate-income family is not spending more than 30 percent of its gross monthly income on housing expenses. The program helps community non-profit organizations broaden their base of financial support from businesses and organizations and reduce their dependency on the decreasing pool of government funds.
Wells Fargo Housing Foundation
The Wells Fargo Housing Foundation, funded by Wells Fargo Home Mortgage, was created to provide permanent solutions to homeownership needs in Wells Fargo communities nationwide. Wells Fargo volunteers have built or renovated more than 2,000 homes since the foundation’s inception in 1993. The Focus Communities initiative is one of many programs that demonstrate Wells Fargo Home Mortgage’s commitment to provide financial services to all communities.
Wells Fargo
Wells Fargo has 92 stores in North Dakota, South Dakota and western Minnesota and employs more than 4,400 team members throughout the region. Wells Fargo & Company is a diversified financial services company with $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest possible credit rating, "Aaa," from Moody's Investors Service and the highest credit rating given to a U.S. bank, "AA+," from Standard & Poor's Ratings Services.
Wells Fargo Home Mortgage
Wells Fargo Home Mortgage is the nation's No. 1 retail mortgage lender and a leading servicer of home morgages.* As a division of Wells Fargo Bank, N.A., it has a local presence in more than 2,400 mortgage stores and bank branches, plus the capabilities to serve the home financing needs of customers nationwide through its call centers, Internet presence and wholsale lending operations. Wells Fargo Home Mortgage services loans for 7.5 million servicing customers.
*Based on year-end 2005 statistics compiled by Inside Mortgage Finance - Feb. 17, 2006
The award was presented at the 2006 North Dakota State Housing Conference.
February
2006
December
2005The contribution allows Dacotah Bank’s branches to
access the Fund within the program’s service area as well as specialized
technical assistance for their lenders to better serve their clients.
Dacotah Bank in Hettinger has been an active partner of CommunityWorks
since 2002, which has enabled it to better help its clients in Adams and
Bowman counties to purchase and rehabilitate their homes.
Thank you to Dacotah Bank for your generous contribution and your
commitment to affordable housing!
August
2005
CommunityWorks received a $500,000 contribution
from Wells Fargo in Minot, which will help provide additional home ownership
opportunities for North Dakotans. The award will be used three ways:
$200,000 will be contributed to the DREAM Fund for lending, $200,000
will be set aside to create residential financing opportunities for Native
Americans living on reservation lands and for families with disabled
members, and $100,000 will be loaned to Neighborhood Development Enterprises
to remodel and rehabilitate twelve low-income rental housing units in the
Minot area.

June 18, 2003Read the FHLBDM Press Release.
June 2003North Dakota Governor John Hoeven proclaims June as Homeownership Month. Housing Program Director Sherri Arenz (seated, second from right) joins Governor Hoeven at the signing ceremony with representatives from housing agencies and other community organizations.
CommunityWorks was featured in the June 2003 issue of the Economic Development Digest, a publication of the National Association of Development Organizations (NADO) Research Foundation. Read the NADO article here.