Gate City invests in housing improvement program

By Lisa Gibson

Gate City Bank’s Wahpeton, N.D., location will invest $1 million in Wahpeton’s Home Improvement Partnership Program, in addition to the $750,000 the bank already has contributed.

HIPP is designed to encourage preservation of Wahpeton’s existing housing market by providing lowinterest loans to homeowners for major home improvement projects. Wahpeton homeowners of owner-occupied single family residences can apply for a HIPP loan for projects including those that correct health and safety code deficiencies, structural improvements, weatherization and energy efficiency, accessibility, and general home improvements that preserve the integrity of the house and add to the long-term value and life of the property and neighborhood, according to Gate City.

The investment from Gate City into similar programs aimed at housing market stabilization began in FargoMoorhead, says Kevin Hanson, Gate City’s executive vice president and director of lending. The market in some neighborhoods was shifting to rentals from ownership, which made some young families look elsewhere for homes to purchase, and that caused issues in school districts, Hanson explains.

HIPP and similar programs encourage functional improvements to rehabilitate homes and “get families back into those neighborhoods,” he says. “If your neighbor fixes up his house, it gives you an incentive to fix up your own.”

Jane Priebe, economic development director for the City of Wahpeton, says in a statement: “We are very excited to partner with Gate City Bank again on the Home Improvement Partnership Program. With ... the city’s efforts on addressing deferred maintenance issues, now is the time for individuals to invest in their properties.”

Gate City wanted to be active in finding a way to help solve the housing market problem and determined HIPP was able to make a difference, Hanson says. “As a community bank, we believe in giving back to our customers and communities.”

LISA GIBSON Editor, Prairie Business 701.787.6753