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The final fiscal year tabulations indicate that our First-time Homebuyer Program again experienced record production. With this very favorable interest rate environment, more than 2,500 families received Homeownership Mortgage Loans in an amount exceeding $198 million during the fiscal year ending June 30, 2002. Throughout the years, 54,249 families have received more than $2.7 billion in residential mortgage financing through the South Dakota Housing Development Authority's Homeownership Bond Program. The US Census places the homeownership rate in South Dakota as high as 71.5% through the end of the year 2001.
The biggest challenge we continue to face on the rental side of the business is maintaining the appropriate balance of affordable housing units in communities of dwindling populations. SDHDA oversees about 11,200 units in 425 properties. While nationwide rental vacancy rates hover around 9%, the overall vacancy rate for the 5,700 units in the 200 properties for which we receive monthly occupancy data stands at 10.6%. However, in some geographic regions, properties are experiencing higher vacancies. Individual property rates run as high as 40%, with the overall vacancy rate in the rural communities as high as 17%. In a few of these communities, businesses have closed; in others, the agricultural environment is just not what it once was. In some cases, elderly are choosing to move where the medical community and social services are located. We are not alone with this issue as HUD reports a 10.3% nationwide vacancy rate for properties located outside of their designated Metropolitan Statistical Areas (MSAs).
The SDHDA Board of Commissioners recently endorsed the sale of an SDHDA-financed property which included approval to move the property to a neighboring community. No, these are not the kinds of "moves" we like to make in our decision making. However, we also realize that, as a fiduciary for the taxpayers' investment in affordable housing, tough decisions must sometimes be made to save a commodity as valuable as a project-based subsidy development. It is also important to ensure that thriving markets continue to receive the affordable housing units necessary to support their economy and their development needs. We would like to believe this move exemplifies the fact that we are seeking creative solutions to provide affordable housing where needed.
We continue to require your support and assistance to maintain good affordable housing policy for South Dakota. Please make plans to join us at the 12th annual housing conference, "Pillars of our Industry" scheduled for November 19 and 20, 2002, at the Ramkota RiverCentre in Pierre.
Dar Baum, Executive Director
SDHDA
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