Funding Available for the Development of Affordable Housing
PIERRE, SD – South Dakota Housing Development Authority (SDHDA) announces approximately $17.5 million is available for funding during the 2018 application cycle for the HOME Investment Partnerships, Housing Tax Credit, Housing Opportunity Fund, Housing Trust Fund and Neighborhood Stabilization programs. Funding can be utilized to assist communities in addressing their local housing needs.
The HOME program, funded by the U.S. Department of Housing and Urban Development, provides funds to developers and/or owners for acquisition, new construction and rehabilitation of affordable housing. SDHDA has $5 million available for affordable single and multifamily housing opportunities statewide.
The Internal Revenue Code of 1986 established the Housing Tax Credit Program as an incentive for construction, rehabilitation and acquisition/rehabilitation of housing for low-income households. Developers of housing tax credit projects typically raise equity capital for their projects by syndicating tax credits to investors. For this application cycle, $3.86 million is available.
The Housing Opportunity Fund may be used for new construction or the purchase and rehabilitation of rental or homeownership housing. It may also be used for homelessness prevention activities, homebuyer assistance and housing preservation – including home repair or to make homes more accessible to individuals with disabilities. The Housing Opportunity Fund program has $2.9 million available for allocation.
The Housing Trust Fund provides financing to expand the supply of decent, safe and affordable housing for extremely low income South Dakotans. Funding is targeted to 30 percent of the Area Median Income and below. This funding source has $5 million available for allocation.
The Neighborhood Stabilization program provides emergency assistance to eligible entities to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization program has $700 thousand available for allocation.
The HOME, Housing Tax Credit, Housing Opportunity Fund, Housing Trust Fund and Neighborhood Stabilization program allocation plans and application forms can be found on SDHDA’s website at www.sdhda.org. Complete applications must be received at SDHDA on Friday, Aug. 31, by 5 p.m. Central Time.
Awards are anticipated to be announced in November. For more information on the housing development programs, please contact a Housing Development officer, at 800.540.4241.