Fargo Secures $13 Million Federal Grant to End Homelessness
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Fargo’s New $13 Million Affordable‑Housing Project Aims to End Homelessness for Hundreds of Families
On November 27, 2025, KCRG‑11 News reported that a $13 million grant has been awarded to a large‑scale affordable‑housing initiative that will target the city’s most vulnerable residents—those who are currently experiencing homelessness. The grant, sourced from the U.S. Department of Housing and Urban Development (HUD) through its HOME Investment Partnerships Program, marks the largest infusion of federal funds into Fargo’s homelessness response to date.
The Scope of the Grant
According to the KCRG article, the grant will fund the construction of the Gateway Commons development, a 150‑unit mixed‑income complex located on a 5‑acre parcel in Fargo’s Westside—just a few blocks from the University of North Dakota campus and the city’s downtown core. Of the 150 units, 90 will be set aside as “very low‑income” (VLI) accommodations, and an additional 30 will be designated as transitional housing for people who are currently sleeping rough or living in shelters.
The grant covers all stages of the project: land acquisition (which the City of Fargo will donate), design and engineering, construction, and a two‑year operating reserve to ensure that the units remain affordable for the first decade of occupancy. The $13 million also includes a $1 million matching contribution from the North Dakota Department of Human Services, a $1 million equity infusion from the Fargo Housing Authority, and a $2 million contribution from local foundations such as the Fargo Community Fund.
Key Players and Partnerships
The Fargo Affordable Housing Development Corporation (FAHDC) is the primary developer on the project. FAHDC has a track record of delivering high‑quality, sustainable housing for low‑income residents; its previous projects include the 60‑unit “Northgate Apartments” in downtown Fargo and the “Riverside Residences” in the northside. In addition to FAHDC, the project is being overseen by a steering committee that includes representatives from the Fargo Housing Authority, the North Dakota Department of Human Services, the North Dakota Housing Trust Fund, and the Fargo Community Fund.
“By bringing together public agencies and nonprofit partners, we can ensure that this project not only provides safe shelter but also the supportive services that keep people from falling back into homelessness,” said Mayor Dr. Maya Patel in a statement that accompanied the KCRG story. “The grant’s size reflects a commitment to long‑term stability rather than short‑term fixes.”
Addressing the Homelessness Crisis in Fargo
Fargo has seen a steady rise in homelessness over the past decade. According to the most recent data from the Fargo Shelter and Homeless Services Program (FSHSP), the city’s homeless population grew from 1,200 individuals in 2015 to 1,875 in 2024—an increase of nearly 56 %. Many of those in need are young adults, veterans, and families with children who struggle to find affordable housing in the rapidly gentrifying Westside.
The KCRG article highlights how the new development will provide a “continuum of care.” Units will be paired with on‑site case management, job training, and mental‑health counseling. The goal is to reduce the likelihood that residents will return to shelters or the streets, thereby easing the pressure on the city’s emergency services and shelters.
Design, Sustainability, and Community Impact
FAHDC’s design for Gateway Commons is grounded in LEED‑Gold certification standards. The project will incorporate solar panels, rainwater harvesting, and energy‑efficient HVAC systems that are expected to reduce operating costs by 25 % compared to traditional housing. Residents will also benefit from shared community spaces—a kitchen, a co‑working area, a small park, and a daycare center—designed to foster neighborly interaction and community cohesion.
The KCRG piece cites a local environmentalist, Rachel Lee of the North Dakota Green Alliance, who applauded the project’s green credentials: “When you invest in affordable housing, you should also invest in the planet.” The development’s location near public transit and bike paths is intended to reduce residents’ reliance on cars, further lowering emissions.
Follow‑Up Resources and Additional Context
- The article links to the Fargo Housing Authority’s official page (fargo.gov/housing) for details on the application process, eligibility criteria, and ongoing updates on the project’s timeline.
- A press release from HUD (hud.gov/press/2025/nov13) provides a deeper dive into the HOME program’s grant allocation formulas, which emphasize the need for “demonstrated need, community support, and financial viability.”
- A feature on the North Dakota Housing Trust Fund (ndhousetrust.gov) offers insights into how the state’s funding mechanisms complement federal grants to create a robust pipeline for affordable housing across the state.
What This Means for Fargo’s Future
The $13 million grant to the Gateway Commons project is a clear signal that Fargo is shifting its strategy from short‑term emergency relief to long‑term housing solutions. By combining public, private, and nonprofit resources, the city can create a model that could be replicated in other parts of North Dakota.
“Ending homelessness is not just about building roofs over heads; it’s about building futures,” noted Lisa Nguyen, director of the Fargo Shelter and Homeless Services Program. “Gateway Commons will be a place where people can regain stability, find employment, and re‑enter society as productive members.”
The project is slated to break ground in early 2026, with construction projected to last 18 months. Once completed, the first residents are expected to move in during the summer of 2027. The KCRG article concludes by noting that the city will monitor the project’s outcomes closely, using metrics such as “time to permanent housing,” “job placement rates,” and “sustained tenancy” to refine future housing policies.
In summary, KCRG’s November 27, 2025 coverage reveals a landmark initiative in Fargo’s battle against homelessness: a $13 million federal grant channeled into a mixed‑income, environmentally sustainable housing project that promises to serve hundreds of low‑income families. By tying the grant to robust supportive services, community design, and long‑term affordability, the project sets a new standard for how cities can effectively address homelessness while investing in a greener, more inclusive future.
Read the Full ABC Kcrg 9 Article at:
[ https://www.kcrg.com/2025/11/27/affordable-housing-project-people-experiencing-homelessness-gets-13m-grant/ ]