Bill Summary – FastDemocracy

0758.03000
     Sixty-eighth
     Legislative Assembly                     HOUSE BILL NO. 1499
     of North Dakota
     Introduced by
       Representatives Roers Jones, Conmy, Cory, Hanson, Mitskog, O'Brien, Pyle, Schreiber-
       Beck, Strinden, VanWinkle
       Senators Axtman, K. Roers
  A BILL for an Act to create and enact a new section to chapter 6-09 of the North Dakota Century
  Code, relating to a primary residence revolving loan fund; to provide a continuing appropriation;
  and to provide a transfer.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. A new section to chapter 6-09 of the North Dakota Century Code is created
  and enacted as follows:
      Residential partnership in assisting community expansion fund - Continuing
  appropriation.
      1.   There is created in the state treasury the residential partnership in assisting
          community expansion fund from which the Bank of North Dakota shall buy down the
          interest rate on loans made by a lead financial institution in participation with the Bank.
          The fund consists of all moneys transferred to the fund by the legislative assembly,
          interest upon moneys in the fund, and payments to the fund.
     2.   The Bank shall administer the fund. Moneys in the fund are appropriated to the Bank
          on a continuing basis for interest rate buydown disbursements and administrative
          costs pursuant to this section. The fund must be audited annually pursuant to section
          6-09-29, and the cost of the audit must be paid from the fund.
     3.   The Bank shall develop policies to administer the fund in accordance with this section,
          including policies for loan participation with local financial institutions.
     4.   The Bank shall calculate the amount of the interest rate buydown to reduce the
          interest rate by up to two percent below the statewide average mortgage rate, but not
          in an amount that would bring the interest rate to less than four percent. The interest
          rate buydown must be paid in full when the loan is originated. The amount of the loan,
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     Sixty-eighth
     Legislative Assembly
           on which the interest rate is being bought down, may not exceed four hundred
           thousand dollars. The interest rate may be bought down only on a loan for the primary
           residence of an owner. To be eligible for a loan under this section, the homeowner
           must be a resident of the state or provide a certification of intent to become a resident
           of the state; the property associated with the loan must be within the state; and the
           homeowner must continue to own the property and maintain the property as a primary
           residence for five years after receiving the interest rate buydown. The Bank shall place
           a lien on the property not to exceed the value of the interest rate buydown, and the
           amount of the lien must be reduced by twenty percent per year until the lien is
          removed after the fifth year.
     SECTION 2. TRANSFER - STRATEGIC INVESTMENT AND IMPROVEMENTS FUND TO
 RESIDENTIAL PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION FUND. The office
 of management and budget shall transfer $50,000,000 from the strategic investment and
 improvements fund to the residential partnership in assisting community expansion fund, during
 the biennium beginning July 1, 2023, and ending June 30, 2025.
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