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Rental Housing Finance Program Unveiled
• PIERRE, S.D. - Gov. Dennis Daugaard says a new financing tool for development of residential rental housing in South Dakota is being offered by the South Dakota Housing Development Authority (SDHDA).
• The Community Housing Development program (CHD) was created to assist in expanding the supply of decent, safe, and affordable rental housing for state residents, thereby strengthening South Dakota communities.
• As South Dakota's economy evolves, it is imperative to provide adequate housing for state residents, the Governor said.
• What is unique about the CHD program is that funds may be used for households up to 120 percent of the area median income, allowing communities to address the need for housing for working residents above traditional program income limits.
• SDHDA will award the funds throughout the state. In order to achieve geographic distribution, only one award of CHD funds will be allowed per community in the first year of the program. Funds will be awarded on a first-come, first-served basis as applications are deemed complete.
• The following activities are eligible residential rental housing activities:
• • Rehabilitation or acquisition / rehabilitation
• • Acquisition / conversion
• • New construction
• The minimum amount of CHD funds that may be awarded to a project is $500,000; the maximum amount is $5 million. SDHDA will evaluate each application to determine the amount of assistance required.
• CHD funds will be issued as fixed-rate financing for a maximum term of 30 years, with the interest rate to be established by SDHDA. During the affordability period, the project must set aside a minimum of 50 percent of the housing units for rentals to households up to 120 percent of area median income. Those housing units will also be subject to rent limitations to ensure that rents are affordable but also comparable to current market rents.
• Public or private nonprofit or profit-oriented individuals, corporations, partnerships, limited partnerships or organizations can apply for CHD funds.
• Those interested in applying for the program can do so by visiting www.sdhda.org and downloading the Community Housing Development Application.
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