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Spring has arrived, and along with sunshine and warmer weather, the thrill of another homebuilding season is in the air. SDHDA's newly announced First-time Homebuyer loan interest rate, with the Step rate beginning at 3.75%, provides strong support of our number one goal to provide affordable homeownership financing in South Dakota.
SDHDA's mission to raise private capital in support of affordable housing by leveraging public programs and resources has been addressed this quarter as well. Although not tax funded, the Authority's ability to raise private capital is governed by federal law. Therefore, I am pleased to report that both Senators Daschle and Johnson have signed S. 525, and Representative Janklow has signed H.R. 284. These identical bills enhance the related programs as they propose to modify the First-time Homebuyer Purchase Price Limit; allow utilization of statewide, rather than county, Income Limits for Housing Tax Credits; and repeal the Ten-Year Rule which prohibits us from recycling prepayments into new mortgages. Thanks to South Dakota's delegation in Washington and to the Authority's many affordable housing partners who support these issues.
We expect to announce a second round of funding for Housing Tax Credits and HOME in 2003. The proposed legislation to enable Housing Tax Credit developments to base the rents and tenant income on state median income, rather than county, would be a welcome addition, especially in the poorest rural areas, to ensure project feasibility in support of SDHDA's goal to maintain decent and affordable rental housing in areas of need throughout the state.
We spent a great deal of time this quarter focusing on another of the Authority's goals--to provide housing to special needs populations. These families and individuals oftentimes require services to enable them to live independently. We are currently analyzing President Bush's initiative to focus on what is being termed "the chronically homeless." Further, we are evaluating how we can better involve Faith Based Groups in partnering to better provide and develop affordable housing and other services and support. The President is clear to state that these are not new programs. These represent a new focus to ending homelessness and encouraging new partners to more actively engage in the housing process. South Dakota does not want to miss this challenge or these opportunities. As we move forward in addressing these initiatives, we welcome your input on how better to coordinate the housing and service processes available in the state.
The Statewide Housing Needs Analysis, the preliminary findings of which were released at SDHDA's Housing Conference late last year, is expected to be completed and released next month.
With three months remaining in this fiscal year, early projections are that although we will not match last year, which represented one of our record homeownership loan production years, demand for affordable homeownership financing has continued strong. More than 1,000 Governor's Houses have now been sold. We continue to focus on the need for additional rental housing in areas of population growth and the impact of declining populations on existing rental developments in rural areas.
As I've said often, we work hard to stay the course; we work hard to capitalize on new ideas; and we work hard to provide you, our partners, the resources you need to provide affordable housing in South Dakota. Say thank you to our troops, and happy spring!
Dar Baum, Executive Director
SDHDA
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