Lutheran Social Services of North Dakota plans to acquire Ruth Meiers Hospitality House's property in Bismarck.
Lutheran Social Services, in partnership with CommunityWorks North Dakota, intends to take over the 1100 E. Boulevard Ave. facility by the end of the summer and turn it into affordable housing.
The sale of the site is "in the works," according to Lutheran Social Services CEO Jessica Thomasson. Last month, Choice Bank took ownership of the facility.
"The reason we got involved was to try to preserve these 85 units of affordable housing in Bismarck, because it's hard when a community loses an asset like that to ever get it back," Thomasson said.
The status of Ruth Meiers Hospitality House is unclear. The nonprofit no longer offers services at the East Boulevard Avenue location and doesn't have staff, according to Thomasson.
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Mike Mulloy, who is listed as a member of Ruth Meiers' board of directors and served as vice president, said he's no longer on the board and declined to answer questions.
Allan Stenehjem, who also is listed as a board member, said he's no longer on the board and does not know who to refer the Tribune to for comment.
Ruth Meiers was recently fraught with financial mismanagement issues, including owing more than $200,000 in back taxes, which preceded the closure of its emergency men's shelter in October 2017.
Lutheran Social Services began managing the facility in March up until May 31, Thomasson said.
Ruth Meiers Hospitality House, which was established in 1987, purchased the former Baptist Home in 2013. It offered two programs: a transitional living program and an affordable housing program.
The transitional living program provided 127 beds for men, women and children, while the affordable housing program offered 85 studio, one- and two-bedroom apartments.
Thomasson said their plans to purchase the facility include retaining the 85 apartments, renovating some of the units and common areas and turning underutilized space into 20 additional apartments. The site would be renamed Porter Place Apartments.
About half of the 85 apartment are currently occupied, despite Choice Bank owning the facility, according to Thomasson.
"No one has been displaced because of any of this transition," she said. "That's really testament, I think, to everybody working together to try to make sure that people's lives are disrupted as little as possible."
Choice Bank CEO Brian L. Johnson said the bank didn't evict tenants because "it wouldn't have been the right thing to do."
“We’re a people-first organization and this involves people, families, and it’s not always the easiest situation," he said.
Lutheran Social Services doesn't plan to offer transitional housing, such as short-term beds. Instead, the organization supports a permanent housing model, similar to its other housing projects in rural parts of the state.
"Instead of having to change your address as your life progresses to stable, you are just moved into an apartment and have services around you," Thomasson said.
Since 2008, Lutheran Social Services has done other housing projects to address the need for affordable housing in rural North Dakota, including in Williston, Watford City and Jamestown. The Bismarck project would be their first in an urban setting, according to Thomasson.
The apartments are open to Bismarck residents who meet income qualifications. Tenants would sign six-month or one-year leases, and rent ranges from $435 to $750. Applications are already being accepted at www.lsshousing.org.
Thomasson said plans for the Ruth Meiers facility will be discussed at neighborhood meetings this summer.