Federal housing secretary, state officials explore remedies for western ND housing shortage

HUD secretary checks western ND housing shortage

BISMARCK, N.D. — The secretary of the U.S. Department of Housing and Urban Development got a firsthand look Monday at northwestern North Dakota’s housing shortage, caused by the region’s booming oil industry.

Shaun Donovan listened to concerns from local officials during a hearing at Williston’s public library, near a municipal park where some oil workers have pitched tents for shelter.

Tax credits, mortgage assistance and planning aid may help ease the shortage, said Sen. Kent Conrad, D-N.D., and Rep. Earl Pomeroy, D-N.D. Conrad. Pomeroy and Republican Gov. John Hoeven accompanied Donovan on a tour of the area Friday.

Conrad said HUD money may be available to help local governments plan for expansion of their roads, sewer and water systems, and other public works needed to accommodate the population growth.

The city of Williston, which has about 14,000 people, is expected to add about 9,000 more residents within five years. Watford City, about 45 miles southeast, could add 600 people to its population of about 1,500.

Pomeroy and Conrad said federal aid is justified because the region is helping to ease U.S. dependence on imported oil.

“There’s a national interest here,” Conrad said. “We all understand that the private sector is where most of the financing is going to come from, most of the development dollars … but there is a need for a (government) partnership.”

The housing crunch has prompted some unusual measures in communities across western North Dakota, where motel rooms are typically booked and apartments have long waiting lists.

Workers are living in small camping trailers and pitching tents in parks. A former church in Killdeer and a former hospital in Stanley are being converted to apartments. Temporary housing used at the Winter Olympics in Vancouver, British Columbia, and for people displaced by Hurricane Katrina is being shipped in.

Pomeroy said some changes may be needed for federal housing programs to account for the circumstances in energy boom areas, where wages sometimes exceed federal limits for low- to moderate-income households, but do not keep up with rising housing prices.

Hoeven said a number of state agencies, including the Bank of North Dakota and the Housing Finance Agency, have been supporting increased housing construction. About 850 units are being added and more development is planned, the governor said.

Local officials “feel like they’ve made a lot of progress, they’re developing a lot of housing,” Hoeven said. “But with the growth in jobs and people coming in, there is more to do.”