Groundbreaking held July 28
for Lutheran Social Services Housing
project in Parshall, ND

Lutheran Social Services Housing, Inc., a subsidiary of Lutheran Social Services of North Dakota, joined with its partners to celebrate and break ground on July 28 for a new housing development in Parshall, ND – Bayview Townhomes and Bayview Apartments.

The project will be under construction starting in August 2010 at the intersection of 2nd Avenue SW and 4th Street SW, with the goal of being ready for occupancy by late 2010.  In total, 20 new dwellings will be created through this initiative, offering attractive and affordable housing for working families and seniors.   
Project partners include Lakeside State Bank/Peoples Bank and Trust of Parshall, North Dakota Housing Finance Agency, City of Parshall, Housing Authority of Mountrail County, North Dakota Department of Commerce, North Dakota State Land Department and Affordable Housing Developer’s, Inc.

Lutheran Social Services Housing has been working with community partners and state agencies for more than a year to bring new housing to Parshall.  Lutheran Social Services Housing is dedicated to ensuring that new options for affordable, quality rental housing are available for those living in rural North Dakota communities. Lutheran Social Services Housing, Inc. is a 501c3 subsidiary of Lutheran Social Services of North Dakota.

Pictured (L-R) are partners in the Bayview Townhouses and Bayview Apartments being developed by Lutheran Social Services Housing in Parshall, ND, at the groundbreaking on July 28, 2010: Jessica Thomasson, Director, Lutheran Social Services Housing, Inc., a subsidiary of Lutheran Social Services of North Dakota; Stan Wright, Chair, Mountrail County Housing Authority; JoAnn Schaeffer, Housing Director, Affordable Housing Developers, Inc.; Jolene Kline, Director of Planning and Housing Development, North Dakota Housing Finance Agency; Richard Bolkan, Mayor, City of Parshall; Gary Petersen, President, Lakeside State Bank/Peoples Bank of Parshall; and Bob Sanderson, CEO, Lutheran Social Services of North Dakota.

Jolene Kline (left), Director of Planning and Housing Development for the North Dakota Housing Finance Agency (NDHFA) presents a check for $693,000 to Bob Sanderson, CEO, Lutheran Social Services of North Dakota and Jessica Thomasson, Director, Lutheran Social Services Housing.  This state funding for the Bayview Townhomes and Bayview Apartments includes $100,000 in Rural Housing Investment Incentive Pilot Program funds and $593,000 in Neighborhood Stabilization grant funds, both awarded by NDHFA.

BAYVIEW APARTMENTS & BAYVIEW TOWNHOMES

New rental housing in Parshall, ND
Developed by Lutheran Social Services Housing, Inc., a subsidiary of Lutheran Social Services of North Dakota.

The Project
Lutheran Social Services Housing is building 20 units of new rental  housing in Parshall. The two scattered site projects will include two two-story four-plex buildings containing eight 2-bedroom units, and six single story twin homes that will create eight 3-bedroom and four 2-bedroom units.  Both sites are within the city limits of Parshall.  The total development cost is about $2.4 million.

The Rent Structure
Five of the 20 units will be reserved for households earning no more than 50% of area median income (AMI). Another two units will serve households at 80% of AMI.  These rents will be set to enable the use of a Section 8 voucher. The remaining units will be priced to be affordable to households earning 60%-80% of AMI but will be available to anyone wishing to live in the community, regardless of income.

This rent structure allows these units help achieve the goal of ensuring that Lutheran Social Services Housing creates housing that is affordable to working households (in this case, for two bedroom units, a household with one person working full time and earning $10/hour and another working part-time and earning $6 to $10/hour).

Rents are set in conjunction with FMRsfor the income-restricted units but the market rate rents are still affordable to households earning $25,000-$38,000 and above (roughly 65-100% of median for a one-person household or 50-80% of median for a three-person household).

The Financing
The development of the project is financed with a combination of debt and equity financing from both private and public sources.   Thanks to these partners of Lutheran Social Services Housing: