The Roundup -

TESORO Contributes $5.3 Million To Housing Incentive Fund

Housing Incentive Fund More Than 70 Percent Capitalized

 


BISMARCK, ND -Tesoro Corporation today announced a substantial contribution to the North Dakota Housing Incentive Fund (HIF). Company representatives presented Gov. Jack Dalrymple with a check for $5.3 million, the single-largest contribution in the program’s history, to support affordable housing projects in Bismarck, Mandan, Dickinson and Watford City. Tesoro’s contribution has pushed the state program to more than 70 percent of its $30 million capitalization goal.

The check was presented during an event at the state Capitol by Tesoro executives, including Executive Vice President of Operations Keith Casey; Senior Vice President of Refining Brian Coffman; Vice President, Mandan Refinery, Todd Dixon; and Government and Public Affairs Director Ron Day. Dalrymple was also joined by North Dakota Housing Finance Agency (NDHFA) Executive Director Jolene Kline.

“Thank you to Tesoro Corporation for this generous contribution and for their support of affordable housing development across North Dakota,” said Dalrymple. “The Housing Incentive Fund is an important tool for ensuring the availability of affordable housing for essential service workers and those on fixed incomes, and Tesoro’s contribution will make it possible for additional development projects to move forward.”

The HIF provides low-cost financing to developers of affordable rental housing. The Industrial Commission, consisting of Dalrymple as chairman, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem, oversees NDHFA, the fund administrator.

“We are proud to support North Dakota Housing Finance Agency and its mission to make housing safe and affordable for the state’s workforce and its aging population,” said Casey. “We believe this initiative will make North Dakota communities stronger and will help spur continued economic growth in the state.”

“We are very appreciative of Tesoro’s support and pleased that we’ve had such great progress in reaching our capitalization goal,” said Kline. “Fourteen of the 24 projects that received conditional commitments from the agency this summer are now fully funded thanks to Tesoro’s and our other partners’ contributions to the HIF.”

NDHFA began accepting HIF contributions in July. To date, the agency has received $21.5 million.

“It would be wonderful to say that we are done, but we aren’t,” added Kline. “We have projects in communities large and small, in the east and in the west that still need support. For many individuals and families, this program is their opportunity to have a place that’s not just affordable, but also safe and secure. A place they can call home.”

While NDHFA has until Dec. 31, 2016, to reach its goal, agency officials continually stress that the sooner the HIF is fully capitalized, the sooner the housing it supports can begin construction.

More information on the HIF is available online at http://www.ndhousingincentivefund.org or by contacting NDHFA at (800) 292-8621 or hfainfo@nd.gov.

Media Contacts: NDHFA - Sarah Mudder, (701) 328-8056 or smudder@nd.gov, or Tesoro Media Relations, (210) 626-7702 or media@tsocorp.com.

About NDHFA

NDHFA is a self-supporting state agency that finances the creation and rehabilitation of affordable housing across North Dakota. The Industrial Commission oversees the agency.

About Tesoro Corporation

Tesoro Corporation, a Fortune 100 company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates six refineries in the western United States with a combined capacity of over 850,000 barrels per day and ownership in a logistics business, which includes a 33 percent interest in Tesoro Logistics LP (NYSE: TLLP) and ownership of its general partner. Tesoro's retail-marketing system includes over 2,200 retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA Gasoline™ and Tesoro® brands.

HOUSING INCENTIVE FUND BACKGROUND

The North Dakota Housing Incentive Fund (HI F) strengthens communities by providing affordable rental housing for essential service workers and low- and moderate-income households. HIF is administered by North Dakota Housing Finance Agency (NDHFA), a self-supporting state agency dedicated to making housing affordable for all North Dakotans.

Housing Incentive Fund 3 (2015-2017 Biennium)

• HIF was reauthorized during the 2015 Legislative Session.

• NDHFA was given the authority to issue $30 million in state tax credits and provided with an immediate $5 million from profits earned by the Bank of North Dakota with another $5 million contingent on bank profits earned during calendar year 2015. The last $5 million is to be set aside for communities with populations less than 12,500.

• The first funding round closed May 29, 2015.

• Thirty-three applications seeking $52 million were received.

• Twenty-four projects were awarded conditional commitments of $35 million.

• HIF dollars will help leverage more than $181.5 million in housing activity.

• 985 housing units will be created with 757 targeted to low- and moderate-income households.

• 285 Essential Service Worker (ESW) units will be created.

• NDHFA began accepting contributions into the fund on July 1, 2015. The agency will continue to accept contributions until Dec. 31, 2016, or until the fund is fully capitalized.

History

• HIF was originally created during the 2011 Legislative Session.

• NDHFA was given $15 million in tax credit authority to capitalize the first fund.

• Ninety percent of the 2011-13 biennium program dollars were set aside for use in energy- and disasterimpacted areas of the state.

• HIF was reauthorized during the 2013 Legislative Session.

• NDHFA received $20 million in tax credit authority and a $15.4 million general fund appropriation.

• The state legislature established a program priority of providing affordable housing for essential service workers in energy-impacted counties.

• Since the program’s inception, NDHFA has allocated over $84 million to projects, leveraging more than $424.5 million in construction financing to support the development of 2,500 new units.

• Seventy-five projects in 27 communities have received funding.

Contributions

• HIF is capitalized in part by contributions from state taxpayers.

• Contributors receive a dollar-for-dollar state income tax credit for their contribution.

• Contributions can be targeted to a specific project, community or region.

• The first fund was deemed to be fully capitalized on Dec. 28, 2012. More than 600 contributions were received. Ninety percent of the contributors were individual tax payers who contributed an average of $10,021. The largest contribution was received from Marathon Oil Co., $3 million.

• The second fund was fully capitalized in eight months, receiving an adequate number of contributions by Jan. 2, 2014. A total of 448 contributions were received. The average individual contribution was $13,509. The largest contributions were received from U.S. Bank National Association and Gate City Bank, each contributing $3 million.

• NDHFA must fully capitalize HIF 3 by Dec. 31, 2016, to honor the financial commitments to the selected projects. As of Oct. 27, 2015, NDHFA has received $21.5 million of the $30 million needed to fully capitalize the third fund. The largest contribution received is $5.3 million from Tesoro Corporation.

 

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