Developmentally Disabled Facility Loan Fund
This fund assists in the construction of facilities to house and train the developmentally disabled, the chronically mentally ill, and the physically disabled persons throughout the State of North Dakota.
Qualifying Requirements
Borrower - Loans may be made to nonprofit corporations organized in the locality in which a facility is proposed to be established.
Use of Proceeds - The proceeds may be used for the cost of real estate, construction, reconstruction, acquisition, furnishing and equipment, and administrative costs related to the establishment of facilities for developmentally disabled, chronically mentally ill, and physically disabled persons.
Loan Amount - The maximum amount of a loan may not exceed 75% of the project costs.
Collateral - All loans under this program shall be secured by a mortgage on the property. In almost all circumstances, BND will require at least a second mortgage to secure its participation.
Application Process
All applications for loans under this program are made to the North Dakota Department of Human Services. The department may approve the applications of qualified borrowers whose project it determines will offer necessary and appropriate services to persons served under this program. Applications approved by the department are forwarded to BND for review and approval.
Information required for consideration shall include:
- Application
- Conditional and firm commitment from Human Services
- Preliminary title opinion
- Agreement to provide services
- Corporate opinion and resolution confirming the project
- Analysis of the project
- Insurance policy for the project
- Any other data or documentation as deemed necessary
Operating Contract
A borrower shall execute a contract with the state to operate the facility in accordance with the standards prescribed for in the licensing of the facility by the Department of Human Services. This contract will also provide that if the use of the facility is discontinued or diverted to purposes other than those provided in the loan application without the express consent of the state, the full amount of the loan becomes due and payable.
Interest Rate
The interest rate established for this program has been set at 10.5% for loans relating to facilities for the developmentally disabled. For projects related to the physically disabled and the chronically mentally ill, the interest rate has been set at 5%.
Repayment Terms
The term of a loan shall not exceed 25 years.
For more information please contact us at:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5786
1-800-472-2166 ext. 5786
TDD (Telephone Device for the Deaf) 1-800-643-3916
