The City of Minot says the CDBG- NDR Resilient Homebuyer Program, which provides financial aid to low-to-moderate income Minot households affected by the 2011 flood, has proven successful.
An additional $1.5 million will be added to the original $3 million that has already been utilized.
The program works with Minot real estate brokers and financial institutions to provide gap financing in the form of a forgivable second mortgage up to $60,000 to cover costs needed by Minot LMI households.
The funds can be used for any purpose associated with the purchase of a single-family home outside the flood zone. The second mortgage is forgiven on the 15-year anniversary of the recipient living in the house.
The first $3 million assisted 51 households in buying a single-family home, with an average second mortgage of $57,000.
The program is supported by the North Dakota Housing Financing Agency, which serves as an underwriter for the second mortgage. It is projected that the additional $1.5 million will help another 25 to 30 LMI households buy single-family homes outside the flood zone.