DREAM I

What is the DREAM Fund?

The DREAM Fund does not provide grants, only loans which traditional lending programs cannot provide. Although we do sometimes meet the full financing need, typically lenders will provide most of the financing and the DREAM Fund will furnish the difference with a second mortgage.

Interest rates and terms are structured so that total payments are affordable to the homebuyer. Interest rates are typically at market rate or lower.

Home buyer education is highly recommended and may be required.

To see how the DREAM Program has helped families achieve affordable homeownership, read the A-Z Brochure – 26 Ways the DREAM Fund Can Help You. (Note: Names have been changed to protect identities)

What types of loans are eligible?

  • D – Down payment and closing costs
  • R – Rehabilitation
  • E – Emergency repairs
  • A – And other housing loans, including construction and construction bridge loans, and
  • M – Mortgage assistance, to overcome lending barriers, including appraisal and affordability gaps

The property must be owner occupied within 60 days of the loan closing except in the case of construction financing.

Mobile homes not on a permanent foundation do not qualify.

What types of borrowers are eligible?

Although most borrowers are low- to moderate-income, we loan to families of all income levels.

The DREAM Fund can be more flexible in determining the homebuyer’s credit-worthiness than traditional lenders, but borrowers must be able to demonstrate the character and capacity to meet their obligations.

The DREAM Fund makes loans to persons in major cities, small communities and rural areas. However, the DREAM Fund is not yet available throughout the entire state. The map in the right-column indicates the current area serviced by the DREAM Fund.

Contact Lisa Pogatshnik (lisa@lcdgroup.org) at 701.667.7603 for eligibility questions.

What is the application process?

Homebuyers should talk to their lender first, because the DREAM Fund provides only the financing that lenders are unable to provide. It does not replace what lenders can provide.

The paperwork done by the lender is generally the same as we require. For the most part, we are able to use copies of paperwork the lender already has. We charge an application fee and for any other out-of-pocket expenses incurred by CommunityWorks.

Here’s how the process works:

  • Lender or Borrower contacts CWND
  • Lender or Borrower submits
    • A letter explaining what type of financing they are requesting
    • A loan application (either from the lender or CWND) and supporting documentation
  • CWND underwrites the loan application package
  • CWND Loan Committee reviews the underwritten loan application package and approves or denies the package
  • CWND notifies the lender and borrower as to the Loan Committee’s decision
DREAM II

What is DREAM II?

Recognizing a need for predevelopment, acquisition and construction financing for housing projects throughout North Dakota, CommunityWorks North Dakota began a quest to establish a new loan designed to address these needs.

This loan fund will help further our mission of creating affordable housing and development opportunities to revitalize communities and improve the standard of living and quality of life for residents of North Dakota.

Eligible Loan Uses

  • Pre-Development Costs
  • Property Acquisition
  • New Construction and Rehabilitation
  • Infrastructure
  • Permanent Financing
  • Other bridge and gap loans

Eligible Borrowers

  • For Profit and Not For Profit Entities
  • Public and Private Entities

Types of Development

  • Single- and Multi-Family
  • Ownership or Rentals
  • General or special population housing
  • Mixed Use Developments
  • Low-Income, Mixed-Income, Market Rate Affordable Housing
  • Public Employee Housing
  • Workforce Housing
  • Subsidized and Non-Subsidized Affordable Housing

Priorities (should meet at least one)

  • Located in Distressed or Underserved Communities
  • In Areas Suffering Housing/Affordable Housing Shortages
  • Address Low- and Moderate-Income Housing Needs
  • Serves Underserved Populations
  • Within a Redevelopment Area
  • Would have significant, positive impact on area’s economy
  • Assures continuation, viability, health or safety of existing affordable housing

Rates and Terms

  • Rates, at or generally below market rates, and terms are flexible and negotiable.
  • Projects which best meet our mission and priorities are generally eligible for the most attractive rates and terms.

Fees

  • Generally a one percent (1%) origination fee is charged.

Application Process

Contact Brent Ekstrom (brent@lcdgroup.org) at 701.667.7624 for more information on beginning the application process

Here’s how the process works:

  • Lender or Borrower contacts CWND
  • Lender or Borrower submits
    • A letter explaining what type of financing they are requesting
    • A loan application (either from the lender or CWND) and supporting documentation
  • CWND underwrites the loan application package
  • CWND Loan Committee reviews the underwritten loan application package and approves or denies the package
  • CWND notifies the lender and borrower as to the Loan Committee’s decision
SBA Resources

The SBA 504 Loan provides businesses with fixed-rate financing for the purchase of long-term assets. Proceeds can be used for the purchase of land, building, and equipment as well as to finance eligible closing costs. The 504 loan is made in conjunction with the borrowers’ local financial institution, which provides a first mortgage for up to 50% of the project cost.

For more information on the SBA 504 Program, contact Tracy Whitney at 701.667.7602 or at tracy@lcdgroup.org.

Community Development

Community Development Block Grants

Community Development Block Grants (CDBG) are made available to local units of government located in a 10-county region (Burleigh, Emmons, Grant, Kidder, McLean, Mercer, Morton, Oliver, Sheridan and Sioux counties). Grants may be used for public facilities projects, housing rehabilitation, and planning activities. Public facilities projects can include replacing water lines, installing lift stations, and providing elevator access to public buildings.

In general, projects must benefit at least 51% low to moderate income persons.

Applying for CDBG Funds

Please refer to the Resources page for information on applying, as well as application forms. Please contact Lyle at 701.667.7623 if you have any questions.

Applications and supporting documentation should be submitted via fax (701-667-7630) or email.

*At the option of the CDBG committee, due dates for final applications may be extended. This option may be exercised without public notice at the sole discretion of the committee if final applications are invited after March 15th due to availability of additional funds resulting from additional allocations, returned or unobligated funds or fund transfers.

In such cases the committee may extend the final application deadline up to five months after committee approval of a pre-application but not later than seven days prior to the latest date by which applications and amendments must be received by DCS.

Economic Development

Capital I Fund

The CAPITAL I Fund is a blend of local funds and funds from the EDA. Its purpose is to provide flexible and accessible loans to for profit businesses within the Region.

Who or What is Eligible?

  • Must be located in a 10-county region (Burleigh, Emmons, Grant, Kidder, McLean, Mercer, Morton, Oliver, Sheridan and Sioux counties)
  • For-Profit Businesses
  • Cooperatives

What can funds be used for?

Uses include purchase or leasing of real estate, equipment, inventory, working capital.

Rates, Terms, Limits, and Fees

Loan limits are between $5,000-$100,000 per loan.

Capital II Fund

The CAPITAL II Fund is a blend of local funds and funds from USDA-Rural Development. Its purpose is to provide flexible and accessible loans to for-profit businesses and cooperatives within the Region, except within the City of Bismarck.

Who or What is Eligible?

  • Must be located in a 10-county region (Burleigh, Emmons, Grant, Kidder, McLean, Mercer, Morton, Oliver, Sheridan and Sioux counties)
  • For-Profit Businesses
  • Not-for-Profit Businesses
  • Cooperatives

What can funds be used for?

Uses include purchase or leasing of real estate, equipment, inventory, working capital.

Rates, Terms, Limits, and Fees

The limit is $150,000 per loan.

Community Development Loan Fund (CDLF)

The Community Development Loan Fund (CDLF) is available to businesses located in all cities and counties within the Region (except the City of Bismarck) for economic development infrastructure or to make loans to businesses creating or saving jobs for low and moderate income persons.

Who or What is Eligible?

  • Must be located in a 10-county region (Burleigh, Emmons, Grant, Kidder, McLean, Mercer, Morton, Oliver, Sheridan and Sioux counties)
  • For-Profit Businesses
  • Not-for-Profit Businesses
  • Cooperatives

What can funds be used for?

Uses include purchase or leasing of real estate, equipment, inventory, working capital.

Rates, Terms, Limits, and Fees

Loan limits for primary sector businesses are $15,000-$500,000 and retail businesses are limited to $10,000-$150,000.

ND Opportunity Fund

The ND Opportunity Fund (NDOF) leverages private financing to help small businesses and manufacturers attain the loans and investments needed to expand and create jobs. A consortium of 38 municipalities across North Dakota has received funding for operating the loan participation program.

Who or What is Eligible?
This program is open to businesses. To be eligible, businesses must:

  • Show the ability to service the debt and conduct business
  • Show a commitment to the project
  • Provide satisfactory payment history with other lenders/creditors
  • Have a satisfactory credit history
  • Offer acceptable collateral

What can funds be used for?

  • Construction
  • Equipment
  • Working Capital
  • Real Estate
  • Interim SBA 504 Loans

What can’t the loan funds be used for?

  • Passive real estate
  • Unguaranteed portion of SBA-Guaranteed loans
  • Any payment of taxes
  • Reimbursement of equity injection
  • Purchase of any business ownership interest

Rates, Terms, Limits, and Fees

The Loan Participation Program offers rates ranging from four percent (4%) to market rate. Projects that have the highest development impact or provide assistance to underserved persons, or businesses impacted by natural disaster, are eligible for the most attractive rates.

Terms vary by asset type.

Borrowers are required to pay a $100 application fee and up to a two percent (2%) origination fee.

All loans must be secured with collateral. Security arrangements are determined on a project-by-project basis.

Loans cannot exceed $1 million and must not exceed more than 50% of the proposed project costs.

How to apply for any of the above funds

Regardless of the program, loan funds follow the same general process:

  1. Call Matt Burthold at 701.667.7601 or inquire by e-mail at matt@lcdgroup.org for general information
  2. Complete the Application form which also lists other required documentation
  3. Submit the Application and required documentation to the LCRDC by US Mail or via e-mail to matt@lcdgroup.org
    • Application must be signed
    • Scanned images of the signed application and required documentation are accepted as originals
  4. Complete application package is analyzed and evaluated for program qualification
  5. Qualified application packages are underwritten for credit worthiness
  6. Qualified, underwritten application packages proceed to the appropriate committee for final approval or denial
  7. Applicants are notified of committee approval or denial within 48 hours of the committee’s decision.

Are you an individual, business, or government rep looking for funding?

We can help.