LOOKING TO 2005 AND BEYOND!
2004 Annual Housing
Conference Preview
November 22-23, 2004
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SDHDA Makes Funds Available to Indian Reservations & Sioux Falls
...
First Premier Bank Invests in South Dakota Homebuyers
...
SDHDA to Name Friend of
Housing Award Recipients
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Citigroup’s Internship Grant Helps Create New
Housing Inventory and
Resource Guide
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Zero-Downpayment Loans Available in Sioux Falls
and Rapid City
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Karl Adam Appointed to
Board of Commissioners
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SDHDA Board Elects
New Officers
...
Governor’s House Price Increase
...
Central Enhancement District Partners with Governor’s House
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Jard Apartments:
A Place to Call Home in Sisseton
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Comment Period on
2005 Consolidated Plan Begins
>> November 1
Veteran’s Day - Office Closed
>> November 11
14th Annual Housing Conference
>> November 22-23
Thanksgiving - Office Closed
>> November 25
SDHDA Board Meeting
>> December 8
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A quarterly publication of the South Dakota Housing Development Authority.
SDHDA BOARD OF COMMISSIONERS
Bob Sutton, Vice Chairman
Karl Adam, Commissioner
Linda Barker, Commissioner
Curt Jones, Commissioner
Cindy Mydland, Treasurer
Jim Roby, Commissioner
Zack Word, Commissioner
SDHDA EXECUTIVE STAFF
Darlys Baum,
Executive Director
Mark Lauseng,
Director of Finance & Administration
Brent Adney,
Director of Homeownership Programs
Vona Johnson,
Director of Planning & Housing Development
Mel Placek,
Director of Asset Management & Compliance
Greg Jasmer,
Director of Research & Marketing
EDITOR
Greg Jasmer
Director of Research & Marketing
DESIGN & LAYOUT
Shalista Anderson
Housing Resource & Development Officer
211 S. Central Avenue.
Pierre, SD 57501
Phone: 605.773.3181
Fax: 605.773.5154
www.sdhda.org
SDHDA is a self-supporting, quasi-public agency, which receives no state general funds.
As we catch our breath following a busy summer sales, construction, and remodeling season, we look forward to hosting our 14th Annual Housing Conference —“Looking to 2005 and Beyond.”
The Conference, scheduled for November 22 and 23, will bring together valued partners to evaluate the progress and consider the possibilities for the new ideas we will hear and share. A special Conference Plenary Session focusing on “Fighting the Battle of Methamphetamines in Our Housing” will feature nationally trained and recognized presenters. In addition, this year’s Conference is expanded to include a track focused on “Best Practices for Housing in Indian Country.” Participants from Minnesota, Montana, and North Dakota will provide both insight and suggestions for adapting their successful projects to South Dakota. Also, we have nearly a dozen additional sessions focusing on a variety of housing issues, details of which are on pages four and five of this publication.
Although, along with our partners, we provided over $290 million in affordable housing opportunities last fiscal year, we continue to face the realities of the State’s changing demographics, including both an aging and migrating population. Nearly 20% percent of the HUD and USDA Rural Development subsidized rental properties located in rural areas throughout the State have vacancy rates in excess of 25%.
According to the U.S. Census Bureau’s annual statistics, the state’s homeownership rate is approaching 71%. Although this is above the national average, the Office of Federal Housing Enterprise Oversight states the average house price of a single-family home in South Dakota has risen 25.6% in the past five years.
We continue to be challenged to preserve and provide affordable housing opportunities for our lower income working families; for our retiring baby boomers who don’t require subsidized housing; and to better coordinate housing with the services to meet the special needs of those people who are or at risk of becoming homeless.
We urge you to attend the Housing Conference. The work is not done. The Housing Development Authority has a number of tools. However, without our lender partners, realtors, housing advocates, housing developers and service providers working together toward our uniform mission, our ability to get the job done is almost impossible. We look forward to seeing you in November at the Ramkota in Pierre... just after you exercise your right to vote!
Dar Baum, Executive Director, SDHDA
The South Dakota Housing Development Authority (SDHDA) has launched its redesigned website –www.sdhda.org- to better serve those seeking affordable housing options and make information more accessible to consumers and housing partners.
Designed to help increase usability, the site is organized into specific areas: homeowners; renters; developers; community service organizations; property management; realtors; lenders, and investors.
The new site offers explanations of programs offered by SDHDA, and provides any forms, applications or manuals which may apply. Additionally, links to related on-line resources are also listed. New features include a mortgage
payment calculator, better search features and a virtual tour of the Governor’s House.
“The new website gives us another tool to serve the residents of South Dakota,” states Dar Baum, SDHDA Executive Director. “We are always looking for innovative ways to get information about valuable programs out to the public and our colleagues.”
The website takes advantage of technology to forward SDHDA’s mission and meet the goals set forth by South Dakota’s 2010 Initiative. It is the first of a series of updates, which include a redesigned newsletter, future redesigns of related sites, a new rental search, and updated printed materials.
This means that first-time homebuyers purchasing a home on the state’s nine Indian Reservations using HUD’s 184 Loan Guarantee Program, may also apply for downpayment and closing cost assistance. Currently, Wells Fargo Home Mortgage, Inc. is the only lender in South Dakota originating HUD 184 loans.
ADDI funds will be set aside for the first 15 months after receipt of the funds from HUD and opened statewide thereafter, if funds remain. The Authority’s decision to limit the funds to Indian Reservations relates to the fact that several other down payment
programs are available for off-reservation lands.
“Homeownership is one of the most critical quality of life issues faced on our South Dakota Reservations,” said Gov. Mike Rounds. “I am committed to enhancing homeownership opportunities on the Reservations. Making these funds available for our citizens and our Reservations is critical.”
The SDHDA Board also extended up to $1 million of its annual HOME loan program of $3.9 million for projects in the city of Sioux Falls and on Indian Reservations. The HOME Program provides developers of both homeownership and rental housing for very low-income and low-income households with acquisition, new construction or rehabilitation loans.
Previously, because of high program demand, Sioux Falls and Indian Reservations were excluded from the HOME Program because of similar funding they continue to receive directly from the U.S. Department of Housing and Urban Development (HUD). Due to softer markets in some areas and reduced demand for State funding, the Board adopted a program amendment to extend loans to projects in Sioux Falls and on Indian Reservations. Applications for the first round of these additional HOME funds were accepted on a first-come, first serve basis the last week of August and September.
“I am very pleased the Authority’s Board pursued this opportunity as one of their 2010 Initiative priorities and is taking actions to carry it out,” said Rounds. “Certainly the needs in these areas continue to exceed their current funding sources, and I anticipate that the funds will be expended very quickly.”
For more information about these and other programs, contact SDHDA at (605) 773-3181 or visit online at www.sdhda.org.
Housing on the Pine Ridge Indian Reservation.
First Premier Bank recently invested $200,000 in South Dakota’s Loan Assistance Program (LAP) revolving loan pool to assist low-income homebuyers in achieving the dream of homeownership.
“LAP is another resource potential homebuyers can and should access,” said Donna Pottebaum, Vice President of Mortgage Loans. “We are happy to be able to provide this investment, allowing more South Dakotans a chance at homeownership.”
LAP, administered on behalf of private lenders and investors by SDHDA, provides down payment, closing cost assistance and gap financing in connection with a home purchase financed by SDHDA Participating Lenders, like First Premier Bank. LAP offers a low 5% interest rate with a term ranging from 5 to 10 years and loan amount ranging from $2,000 to $10,000. Income limits, which vary based on family size and the county in which the home is located, do apply.
“First Premier Bank strives to offer innovative homeownership opportunities to South Dakotans,” concluded Pottebaum.
First Premier Bank has offices in Sioux Falls, Watertown, Castlewood, Kranzburg, Lake Norden, and Wakonda.
Pictured left to right is Donna Pottebaum, Vice President of Mortgage Lending at First Premier Bank in Sioux Falls and Dar Baum, Executive Director for the South Dakota Housing Development Authority.
South Dakota enjoys a tradition of excellence in affordable housing, largely as a result of the efforts of organizations and individuals around the state who are committed to improving access to affordable housing and enhancing the quality of life for its residents.
Each year, SDHDA honors one organization and one individual for their contributions to affordable housing throughout South Dakota.
The recipients of this award have been instrumental in creating and/or supporting affordable housing, implementing housing-related programs, educational efforts or helping others solve housing problems.
This year, honorees will be announced at SDHDA’s Annual Housing Conference Friend of Housing Awards Luncheon on November 22, 2004.
I think people learn best in an atmosphere of fun,” says Greg Risberg, “so my goal is to be ‘hilariously informative.’” Greg is a warm, funny motivational speaker who has addressed over 500,000 people in 48 states, as well as Canada, Great Britain and Australia with his “humor with a message” programs. He helps people learn useful ideas for handling stress better, communicating better, and finding more balance in their lives.
9:00 am – 5:00 pm
• Registration Desk Open
10:00 am – 11:30 am
• Opening Session
11:30 am – 1:00 pm
• Awards Luncheon
1:00 pm – 2:30 pm
Breakout Sessions
• Staying in the Game
• More than Basic Housing
• Ethics in Mortgage Lending
• Best Practices in Indian Country - Homeownership Opportunities and Infrastructure
2:30 pm – 2:45 pm • Break
2:45 pm – 4:15 pm
Breakout Sessions
• Livability - Housing the Future
• Keeping Affordable Housing Affordable - Are Incomes Keeping Up with Prices?
• Best Practices in Indian Country
• Multifamily Housing Opportunities and Infrastructure
4:15 pm – 4:30 pm • Break
4:30 pm – 5:30 pm
• Keynote Speaker – Greg Risberg
6:00 pm – 7:30 pm
• Networking Reception
7:30 am – 12:00 noon
• Registration Desk Open
8:00 am – 9:30 am
Breakout Sessions
• Life After Y15
• Cultural Diversity in Homeownership
• Best Practices in Indian Country
– Putting What We’ve Learned to Good Use
9:30 am – 10:00 am • Break
10:00 am – 12:00 noon
Plenary Session
• Fighting the Battle of
Methamphetamines in Our Housing
12:00 noon – 1:00 pm
• Lunch with SDHDA Staff
Come spend time with SDHDA staff and other attendees for some one-on-one discussion over lunch, followed by your opportunity to comment on the 2005 Consolidated Plan Update and Analysis of Impediments.
1:00 pm
Post Conference Session
• Best Practices in Indian Country
– Working with Economic Development, Human Services, Homeland Security, and DOT 2:30 pm
Post Conference Session
• Best Practices in Indian Country
– Sorting Through the Nut and Bolts
For a complete session descriptions please visit www.sdhda.org/2004
Staying in the Game... Much of our housing is now 20 years old or older and is in need of structural changes or at least an update. Find out how others have used a variety of resources to help stay competitive in today’s market.
More than Basic Housing... This session will explore ways to assist people in finding a home or an apartment as well as link them to the financial, educational, and basic life skills training they need to keep them there.
Ethics in Mortgage Lending... The mortgage industry is full of lenders who are competing for your business and most are fair, competent and truthful. Some are not. Does the industry have safeguards in place to protect the consumer and the ultimate mortgage holder?
Best Practices in Indian Country - Homeownership Opportunities and Infrastructure... This session will have an open atmosphere with guests from both in and out of South Dakota talking about the successes they have had providing housing opportunities for their tribal members. Unique partnerships, creative financing opportunities, successfully putting a deal together; learn from the people who HAVE done it and can help you apply it to your area of need.
This session will also touch on one of the biggest barriers residents in Indian Country face in preparing for homeownership, their credit. Hear what resources are available to assist those people in becoming successful homeowners.
Livability - Housing the Future... A look at universal design, accessibility, and the fair housing laws in both new and existing housing. Participants will discuss why it matters and what you can do to improve the marketability and livability of single family and multifamily housing in a cost-effective way while staying out of trouble.
Keeping Affordable Housing Affordable - Are Incomes Keeping Up with Prices?… South Dakota’s housing market continues to grow at a surprising rate, similar to many other parts of the nation. What exactly is causing this phenomenon? Are innovative financing programs the answer?
Best Practices in Indian Country – Multifamily Housing Opportunities and Infrastructure… Participants will explore ideas, partnerships, challenges, and success stories in regards to multifamily housing in Indian Country.
Life After Y15… There are many challenges and opportunities for owners and potential purchasers of tax credit properties in year 15 and beyond. Keeping the property affordable vs. turning it to market rate vs. the needs of the community, learn what can be done.
Cultural Diversity in Homeownership… This session will explore the areas of overcoming language barriers, non-citizen housing regulations, predatory lending and its effects on this population, and opportunities for homebuyer education.
Best Practices in Indian Country - Putting What We’ve Learned to Good Use...We’ve heard how it can be done; now we will explore the next steps to making it work in South Dakota. This session will continue previous discussions and find legitimate steps we all can take in “Looking to 2005 and Beyond.”
Homeownership Education – What’s it Worth?...Explore the benefits of H.E.R.O. approved homebuyer education for Realtors, Lenders, Consumers, and other non-profit organizations. This session will take you through what the Partnering service providers offer to consumers and how they can help make a more informed buyer and owner.
Fighting the Battle of Methamphetamines in Our Housing... There are some housing issues we don’t face nearly as much as other states, this isn’t one of them. “METH” AFFECTS US ALL and we may not even realize how. That is why we want each participant’s attention for this session. Join in discussions about what our responsibilities are, what the signs to spotting Meth are, and what precautions we need to take to clean up the mess if Meth ends up in or near your neighborhood.
Best Practices in Indian Country – Working with Economic Development, Human Services, Dept. of Homeland Security and DOT… Explore partnerships and challenges beyond housing. This session will give participants an opportunity to share thoughts and ideas about the future of the economy, the transportation systems, and other services available in Indian Country. Panelists will include all of the “doers” in these areas.
Best Practices in Indian Country – Sorting through the Nuts and Bolts… This session will bring back presenters and partners to dig deeper into the specifics of their success stories and to give attendees an opportunity to get answers to additional questions.
Join your colleagues and friends of SDHDA at the networking reception the evening of the 22nd. This is a great opportunity to get to know those working closest with you, make friendships and enhance your working partnerships.
SDHDA was one of 130 nonprofit organizations nationwide awarded $5,000 grants under the Citigroup Community Summer Intern Program (CSIP) to pay the salary for a student intern to work on community development programs.
Brook McNaughton, an English for Information Systems major at Dakota State University, was selected for this year’s internship.
“Brooke was a great asset to SDHDA this summer,“ stated Greg Jasmer, Director of Research and Marketing and Brooke’s supervisor. “We are very thankful for Citigroup providing this fantastic opportunity to SDHDA.”
McNaughton’s main priority was updating the Housing Inventory and Resource Guide. The two part publication lists housing resources throughout South Dakota. The Housing Inventory breaks down affordable rental housing available statewide, including descriptions of amenities, sizes, location and accessibility. The Housing Inventory is partnered with a Resource Directory of housing related agencies, including housing authorities, shelters, tribal offices and more. It also includes their contact information. Countless hours were spent communicating with these agencies and property managers to assure that the information was accurate. McNaughton also handled design and layout of the books.
The new Housing Resource Guide will be unveiled at the SDHDA Annual Housing Conference. They are free to any agency or individual who requests one.
For more information, to view the Housing Resource Guide online or to request hardcopy, contact SDHDA at (605) 773-3181 or visit online at
www.sdhda.org.
Qualified First-time Homebuyers in Sioux Falls and Rapid City can now access 100% mortgage financing in combination with the SDHDA Program.
“Homebuyers in rural communities have had this option available to them for some time through programs with USDA Rural Development,” said Bob Sutton, Chairman of the SDHDA Board of Commissioners. “What’s new and exciting about this is that now residents in our two largest communities can have that same opportunity.”
This zero-downpayment option provides an opportunity for 100% financing for the First-time Homebuyer while accessing SDHDA’s low interest rate of 4.95% for a 30-year fixed or the Step Rate Option which begins at 3.95% and increases one-half percent per year until it becomes fixed at 5.95% beginning the 5th year of the 30-year loan. These new loans will be insured through private mortgage insurance companies. Closing costs still apply.
In addition to the new zero-downpayment loans, SDHDA also offers borrower’s access to the Loan Assistance Program (LAP). The LAP Program can provide closing cost assistance with the zero-downpayment product. LAP is a funding pool capitalized by Wells Fargo Bank, Wells Fargo Financial, Great Western Bank, First Western Bank, and First Premier Bank.
For more information, First-time Homebuyers should contact their local lender.
Governor Mike Rounds announced recently the appointment of Karl Adam to the South Dakota Housing Development Authority (SDHDA) Board of Commissioners.
Adam is a native of Pierre and is the Chief Executive Officer at Dakota State Bank of Blunt and Pierre. Adam served under Governors’ Mickelson and Miller in the Governor’s Office of Economic Development from 1991-1995. From 1989-1991, he served under President George H.W. Bush at the U.S. Department of Commerce in Washington, D.C.
“I am enthused about my appointment to the SDHDA Board. I hope to be able to help encourage prudent public/private investment relationships to assist in fostering continued growth and affordable housing opportunities in South Dakota,” commented Adam.
In addition to the SDHDA Board, Adam serves on the South Dakota Bankers Board of Directors, the South Dakota Bankers Insurance Services Board of Directors, the University of South Dakota Foundation, the Rawlins Municipal Library Board, and the Saint Mary’s Foundation Board of Directors. Adam earned an undergraduate degree from the University of South Dakota in 1987 and a master’s degree in Public Administration in 1989. He resides in Pierre with his wife, Joan and their five children.
Bob Sutton, the Executive Director for the South Dakota Community Foundation, was recently elected Chair of SDHDA’s seven-member Board. Prior to the SD Community Foundation, Sutton spent 11 years in Pierre, serving as an association executive and lobbyist for county government, the oil industry, and the financial services industry. He has also served as a vice president at Citibank in Sioux Falls.
“The members of this Board bring a wonderful mix of knowledge, experience, and leadership to the decision-making we are entrusted with,” said Sutton. “I feel honored to be part of an agency that has done so much for the residents of South Dakota, and I look forward to tackling future challenges to strive towards safe, decent, and affordable housing for everyone in our state.”
Cindy Mydland, Community Bank President for Wells Fargo Bank in Brookings was elected Vice Chair. Cindy brings 14 years of lending and banking experience to SDHDA’s Board. She has also previously worked for the Governor’s Office of Economic Development as well as the South Dakota Housing Development Authority.
Karl Adam, elected Treasurer of the SDHDA Board, has worked for Dakota State Bank of Pierre and Blunt for almost 10 years. In 2001, Adam became President and Chief Executive Officer. Prior to that, he worked in the George H.W. Bush administration at the U.S. Department of Commerce in Washington D.C. and then for former Governor’s Mickelson and Miller in the Governor’s Office of Economic Development.
Beginning October 18, 2004, the price of the Governor’s House will increase to $30,800. Household income limits are being increased as well.
Governor’s Houses, built by inmates at the Mike Durfee State Prison in Springfield, are available to one and two-person households with incomes up to a maximum $33,500 and to three or more-person households with household incomes of up to $36,750. These are increases of $500 and $450, respectively.
Net worth limits remained the same at $100,000 for families and $175,000 for elderly with liquid assets limited to $70,000 and $100,000 for the respective family and elderly circumstances.
At inception in 1996, Governor’s House’s, initially built at 768 sq. ft., were priced at $19,500. In 2000, when the home size was increased to 960 sq. ft., the price was increased to $25,000, with a small increase of $500 shortly thereafter. One year ago, SDHDA increased the price to $28,000 after working to hold it steady for three years.
“We have worked very diligently to streamline all processes and systems to keep costs down and keep the homes as affordable as possible,” said Dar Baum, SDHDA Executive Director. “But with the increases in the cost of materials, particularly dimensional lumber and metals, we just had no choice.”
“The homes are still affordable and are still serving the purpose for which they are intended,” commented Sutton. “They offer residents an opportunity for homeownership where income levels may have previously prevented ownership; they provide for new housing stock opportunities in South Dakota’s rural communities; they add to the tax base of the community; and they provide local contractors with opportunities to add garages, additions, basements, foundations, etc.”
The price increase will also affect the 1,200 sq. ft. Governor’s Daycare Facility, increasing it from $31,500 to $35,000.
Sales personnel and model homes are located throughout the state. Visit SDHDA’s website at www.sdhda.org for contact information, model home locations, and to take a “Virtual Tour” of the houses, or call the Authority’s toll-free number at (800) 540-4241 for more information and referral to a sales member.
The Central South Dakota Enhancement District has taken over promotion and sale of the Governor’s House for the north central section of the state.
The District office, located in Pierre, will cover sales of the Governor’s House in a nine-county area including Corson, Ziebach, Dewey, Stanley, Jones, Sully, Hughes, and Hyde counties.
“We are pleased to have formed this partnership with the South Dakota Housing Development Authority,” said David Hauschild, Executive Director for the Central District. “South Dakota is a vast rural area. Within a couple hours drive, we can be out to address the folks in the central and north central areas.”
The Central South Dakota Enhancement District provides technical assistance to its members, economic development groups and businesses located in the nine-county area and assists in securing funds for infrastructure needs and business opportunities.
“This partnership with Central Enhancement District will serve as a great tool in letting even more qualified residents know about the opportunities out there which can help them achieve their dream of becoming homeowners in South Dakota,” added Paul Kostboth, Director of the Governor’s House Program.
For more information about the Governor’s House call SDHDA at (605) 773-3181 or visit online to take virtual tour at www.sdhda.org. To purchase a Governor’s House in Central South Dakota contact David Hauschild at (605)773-2782 or by e-mail at davidhauschild@csded.org.
Many improvements have recently been made both inside and out. Carpet and vinyl were replaced throughout the building. Enhanced fire alarms and an upgraded central heating and cooling system were installed. Outside, there are new windows, control access entry, and the patio addition will be getting new furniture.
The individual units received a remake as well. New appliances, air conditioning, sinks and disposals were exchanged. Cabinets and countertops will be replaced in the near future.
A highlight of the property is the beautiful community room, a center of attraction for residents. The room sees activities from card games, birthday parties, and there is a weekly bible study and movies.
For more information contact SDHDA at (605) 773-3181 or visit online at
www.sdhda.org.
Jard Community Room
