>>GOVERNOR PROCLAIMS
JUNE HOMEOWNERSHIP MONTH
>>Wells Fargo Financial Provides
Funding Pool for Employer Mortgage Assistance Program
>>2005 Lender Training a Success
>>SDHDA Supports Habitat for Humanity
>> SDHDA Has Family Ties to Habitat for Humanity
>> SDHDA Participates in Seminar at Crazy Horse Monument
>>SDHDA Staff Volunteers Time to Paint House
>>ADDI Funds Available on Reservations
>>State Representatives Attend SDHDA Board Meeting
>>2005 Sees Increases in HTC and HOME Applications
>> Governor’s House Price to Increase
>>Bicentennial Apartments in Abderdeen
>>HUD’s Annual Community Assessment
ADA Celebration "15 years of the Americans with Disabilities Act"
www.siouxfalls.org/
relations
>> July 26
Consolidated Plan
Public Comment Period Begins
>> August 31
SDHDA Office Closed for Labor Day
>> September 5
SDHDA's Booth at the SD/ND Realtor Convention in Sioux Falls
>> September 14-16
Consolidated Plan
Public Comment Period Ends
>> September 30
SDHDA Office Closed for
Native American Day
>> October 10
Annual Housing Conference
>> November 8-9
HOME & Tax Credit Training by TheoPro - Pierre
>> November 9-10
Final Consolidated Plan Release
>> November 15
A quarterly publication of the South Dakota Housing Development Authority.
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 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
SDHDA is a self-supporting, quasi-public agency, which receives no state general funds.
As the price of homeownership continues to climb, we are using every available tool, short of interest-only loans, to maintain the lowest rate possible for First-time Homebuyers. Many of our smaller communities, which have been successful in maintaining a vibrant economy, and bedroom communities surrounding our regional economic centers are pursuing the Authority's Rural Site Development Program to enable them to offer affordable building lots and modest new, and affordable, homeownership units.
Although rental rates remain generally stable, we know it is critical to continue to build affordable rental units for low-income working families moving into the Sioux Falls and Black Hills areas, and we continue to place a high priority on preservation of affordable rental housing, particularly those developments which provide deep rental subsidies. In order to do that, however, we need to continue to advocate in Congress for legislation that allows current owners of these units to sell the properties without severe tax consequences.
During the fiscal year just ended, SDHDA purchased 2,407 loans in the amount of $232 million. Nineteen percent of the homes financed were newly constructed.
This year's entire Housing Tax Credit allocation was reserved following the first application round, and all except a portion of the Community Housing Development Organization (CHDO) set-aside in HOME Investment Partnership (HOME) funds was reserved as well. These reservations will support the development or preservation of approximately $41.5 million of affordable housing throughout the State and on Indian Reservations.
Rising materials and fuel costs have caused the need to increase the price of the Governor's House to $33,000. Income eligibility has been increased to correspond to the increased price. See the related story within this Newsletter.
As we embark on this new fiscal year, we are in the process of developing the annual update to the 2003-2008 Consolidated Housing and Community Development Plan (Consolidated Plan) and the 2006-2007 Housing Tax Credit and HOME Allocation Plans.
We are proposing to move the annual period for the Consolidated Plan, which includes HOME, Emergency Shelter Grants, Housing Counseling, and other HUD Programs to coincide with the calendar year and Housing Tax Credit Program year rather than the current March-February cycle.
Our latest report from Washington is that a tax bill in this calendar year is unlikely. Therefore, we would expect the Internal Revenue Service (IRS) codes, under which we issue Housing Tax Credits and the tax-exempt bonds for the First-time Homebuyer Program, to remain intact for the immediate future. The proposal for a Homeownership Tax Credit is still pending in Congress. We continue to watch the proposals to recast the oversight of GSEs, Fannie Mae and Freddie Mac, and are most interested in the outcome of a related proposal to set aside a portion of their annual income into a fund to support homeownership for families at 50% and below of median income living in distressed areas. SDHDA's priorities in Washington are to maintain the First-time Homebuyer and Housing Tax Credit Programs while advocating for continued HUD rental subsidies for our poorest families and for program modifications to encourage the preservation of the federally subsidized units many of which are occupied by South Dakota 's low-income elderly.
We look forward to another flourishing fiscal year and will continue to rely on our strong partnerships to make best use of available funding and sound decisions in providing quality affordable housing opportunities to our residents.
Sincerely,
Dar Baum, Executive Director
Governor Mike Rounds proclaimed June 2005 as Homeownership Month in South Dakota. In his proclamation, the Governor emphasizes the importance of homeownership as a foundation on which communities, families and dreams are built.
SDHDA celebrated Homeownership Month in June by continuing its “Paint – South Dakota” campaign. For the past seven years, SDHDA has sponsored the “Paint – South Dakota” campaign, purchasing more than 3,800 gallons of paint and primer for 200 homes across South Dakota. More than 2,500 local volunteers have assisted in painting homes in their communities since the campaign’s inception.
“We have continued the campaign because of its success and the benefits it gives to people, volunteers, and communities,” said Bob Sutton of Pierre, Chairman of the SDHDA Board of Commissioners. “This year, 31 communities will be helping us celebrate.”
Wells Fargo Financial Bank has partnered with SDHDA providing $200,000 in funding a loan pool for the Employer Mortgage Assistance Program (EMAP).
“We are thrilled to be able to provide this funding to increase the effectiveness of a strong program such as EMAP.” said Bill Earley, Vice President of Wells Fargo Financial Bank. “Wells Fargo Financial Bank is dedicated to doing as much as we can to help the residents of South Dakota achieve their dream of homeownership.”
The pool will be used to fund downpayment and closing cost loans provided to EMAP eligible homebuyers. The participating employer will then reimburse the loan pool for the amount of their employee’s loan.
Employees designated by participating employers can borrow up to $6,000 at an interest rate of 2%. EMAP loans have level monthly payments and are amortized over a term of 5 years.
“Having Wells Fargo Financial Bank step up to the plate with this funding provides stability to EMAP,” said Dar Baum, SDHDA Executive Director. “We are thrilled to have Wells Fargo Financial Bank as a partner in yet another important program for South Dakota homebuyers.”
For a complete list of EMAP participating employers, visit www.sdhda.org.
For more information about EMAP, contact Brent Adney, Director of Homeownership Programs, at (605) 773-5157 or brent@sdhda.org.
SDHDA just completed its Annual Lender Training. The nine sessions hosted 298 lenders, the highest attendance on record. This annual training is required for all SDHDA participating lenders. This year’s training covered information that is reviewed by a mortgage purchase officer in a closed loan file, 100% PMI products, Rural Development products, originator guidelines, LAP Program and 2010 goals.
New for 2005 was a “Beginners Session” for mortgage staff that have less than one year experience with SDHDA loans.
SDHDA staff work diligently to provide a quality, interesting training experience and they are already preparing for next year. If you are interested in attending Lender Training, have ideas or suggestions for future trainings or would like more
information about SDHDA’s Homeownership programs, contact Brent Adney at 605-773-3181 or email
brent@sdhda.org.
SDHDA and Habitat for Humanity – South Dakota have teamed up to expand affordable housing opportunities across South Dakota.
SDHDA has agreed to purchase one loan from each of the 14 affiliate Habitat for Humanity organizations statewide. The purchase funds, up to $750,000, will be used to further each affiliate’s goal of providing safe, decent, and affordable housing to low-income families in South Dakota.
“This is a wonderful opportunity to participate in this program that will benefit our affiliates across the State,” stated Rita Edwards, Habitat for Humanity – South Dakota Chair.
For more information about Habitat for Humanity - South Dakota, please contact Rita Edwards at 605-331-5601.
When many people think of their retirement they envision relaxing, catching up on hobbies, and long vacations. Gary and Kathy Boettcher didn’t think about retirement that way. “We decided that in addition to traveling, we could also try to work on some volunteer projects along the way,” says Kathy.
At an RV park in New Mexico, Gary and Kathy found what they were looking for. A couple they met there was involved with Habitat for Humanity and belonged to a group called the Care-A-Vanners. who are mostly full-time RVers that work on Habitat for Humanity builds as they travel.
The couple’s new friends gave them a copy of the quarterly newsletter that Habitat for Humanity publishes with dates and locations for Habitat Builds around the country and the type of RV amenities for Care-A-Vanners.
“We got on their mailing list, and the rest is history,” adds Gary.
Their first build was in Brookings, SD, relatively close to their daughter Lisa Larson, SDHDA’s Executive Administrative Assistant, in Pierre.
Besides their desire to help, the only related skills the Boettchers bring to the builds are their 40 years of homeownership.
“Kathy had never pounded a nail in her life except maybe to hang a picture,” said Gary. “But she was framing interior walls the first day.”
Other Care-A-Vanners also take on leadership roles, letting people know what needs to be done. Most tasks don’t require a lot of experience, but the volunteers are always willing to help do what needs to be done.
“There really aren’t any unpleasant tasks,” they agreed.
After spending the winter in Arizona, Gary and Kathy look forward to doing two to three Habitat builds this summer. They enjoy meeting other Care-A-Vanners, but especially enjoy working with and meeting the families who will be receiving the homes.
SDHDA staff members recently participated at a “Housing Tax Credit in Indian Country” seminar at Crazy Horse Monument, co-sponsored by Fannie Mae and SDHDA.
Vona Johnson, SDHDA’s Director of Planning and Development, and other SDHDA staff walked attendees through the application process, highlighting timelines, Qualified Allocation Plan development and funding priorities.
Additional discussion, including presentations from Tribal representatives, addressed real life examples and successes using the Housing Tax Credit program, combining funding resources, and designing housing that will last.
For more information regarding the Housing Tax Credit Program please call Lorraine Polak at 605-773-3181.
By CHRISTIANA MCCORMICK
Capital Journal Staff
Reprinted with permission
South Dakota Housing Development Authority got out of their business suits and into their painting clothes this month.
To celebrate June as Homeownership Month, SDHDA continued its successful “Paint – South Dakota” campaign.
During the campaign, volunteers scrape, prime, repair, and paint houses in communities across the state. This year, 31 communities participated.
“This is the first year SDHDA staff has done the project themselves,” said Greg Jasmer, SDHDA Director of Research and Marketing in Pierre.
The staff worked on a house on North Poplar Avenue. Jasmer said that SDHDA chose this house after consulting with individuals from the Retired Senior Volunteer Program, the city of Pierre, and the ministerial association.
The house they chose belongs to a ware veteran, who Jasmer said is currently in a veterans’ hospital.
Usually, the SDHDA decides which houses to work on by looking at applications submitted by communities for a house in their area, said Jasmer.
He explained that Housing Authority staff look for applicants who cannot paint the house themselves because of financial or physical reasons. No specific income criteria needs to be met.
Communities submit an application for a house in the area, and if SDHDA approves the application, it is up to the community to gather volunteers and supplies for the house.
The SDHDA then reimburses the volunteers for their monetary expenses.
“Paint – South Dakota: began as a celebration of SDHDA’s 25th anniversary seven years ago, Jasmer said.
Originally, housing authority staff chose 25 homes from 25 communities to paint, but each year since the anniversary more than 25 applications have been submitted.
So far, each submitted application has been approved, said Jasmer.
SDHDA has purchased more than 3,800 gallons of paint and primer for 200 homes across South Dakota, and more than 2,500 volunteers have assisted in painting the homes of members of their communities since the campaign began.
For more information or to submit an application for the “Paint – South Dakota” campaign, call 1-800-540-4241 or go to the SDHDA Web site at http://www.sdhda.org.
Funds are available to potential homebuyers for 0% interest rate downpayment and closing cost loans for those seeking homeownership on South Dakota’s Indian Reservations.
Eligible mortgagors are those who will receive a mortgage loan made directly or guaranteed by HUD 184, USDA Rural Development or eligible for purchase by Fannie Mae. The property must be fee simple title, leasehold estate, or allotted individual trust land located in South Dakota. Homebuyer education is a requirement to receive a loan.
“The money is available and fits well with many different homeownership programs,” said Dar Baum, SDHDA Executive Director. “We just want people to know about and take advantage of this great opportunity to own a home of their own.”
For more information regarding ADDI funds including loan term, interest rates, income and purchase price limits, loan term and maximum loan amount, visit www.sdhda.org.
State Representatives Jean M. Hunhoff of District 18 and Donna Schafer of District 17 attended SDHDA's recent Board of Commissioners meeting held in Yankton.
Recently, the 2005 Housing Tax Credit (HTC) reservations and HOME Investment Partnership commitments were approved by the SDHDA Board of Commissioners.
SDHDA received applications for more than $4 million in Housing Tax Credits and $7 million in HOME funding.
Sixteen developments were awarded funding totaling more than $6.5 million which included $2.8 million in Housing Tax Credits and $3.7 million in HOME funds. These developments will include 269 units of new construction and 355 units of acquisition and/or rehabilitation, with total anticipated development costs of nearly $41.5 million.
For a detailed list of developments awarded Housing Tax Credits and HOME funds, visit www.sdhda.org.
Recent action by the SDHDA Board of Commissioners will increase the price of the Governor’s House beginning August 1, 2005. The price of the 960 sq. ft. home will increase from $30,800 to $33,000.
The Board also increased the income limits of those eligible to purchase a Governor’s House. One- to two-person families with household income of $34,900 or less and households of three or more with income of $39,900 or less will qualify after August 1.
Net worth limits remain 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.
The price of the Governor’s Daycare Facility will increase to $38,000.
For more information on the Governor’s House, visit www.sdhda.org.
Bicentennial Apartments in Aberdeen is home to many of Aberdeen’s senior citizens. Now, some residents have more to come home to and all have improvements to enjoy.
Portions of the building were recently renovated, including new additions to 7 efficiency apartments. Bedrooms were added to these units, increasing the size by nearly 40%. New air conditioners, which have temperature controlled thermostats, have been added in all units making the hot South Dakota summers more comfortable.
The laundry room was re-decorated, and automatic doors have been installed at the entrances. New tables and chairs have also been added to the community room and kitchen where residents regularly hold social functions, such as Bingo, movie nights, monthly potlucks, puzzles, nightly card playing and monthly blood pressure checks.
For more information about Bicentennial Apartments please call 605-229-0080.
HUD’s Annual Community Assessment, which is HUD’s review of information in South Dakota’s most recent Consolidated Annual Performance and Evaluation Report (CAPER) as well as all other information on performance and compliance, is available to the public for review. The report states that the assessment meets the mandates of the statutes, provides a basis for working together collaboratively to further the achievement of our housing and community development goals, and meets key program and HUD objectives.
Download at copy at www.sdhda.org, or call 605- 773-3181 to obtain a copy by mail.