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Developmentally Disabled Facility Loan Fund
This fund assists in the construction facilities to house and train the
developmentally disabled, the chronically mentally ill, and the physically
disabled persons throughout the State.
Qualifying Requirements
Borrower - Loans may be made to nonprofit corporations organized in the
locality in which a facility is proposed to be located.
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 State Department
of Human Services. The department may approve the applications of qualified
borrowers whose project the department 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 on this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
700 East Main Ave
PO Box 5509
Bismarck ND 58502-5509
(701) 328-5786
1-800-472-2166 ext. 5786
TDD (Telephone Device for the Deaf) 1-800-643-3916
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