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This Legislative Session marks the 30th anniversary of the origination of the South Dakota Housing Development Authority. As 1973 marked a new era for affordable housing and development for the State, 2003 marks a new era in governance for South Dakota.
We welcome the opportunity to work with Governor Rounds to advance his commitment to a strong economy for South Dakota. We welcome the opportunity to work with the Legislature to ensure that the most efficient and affordable financing tools remain available for the South Dakota Housing Development Authority.
As was envisioned by the 1973 Legislature, the Authority remains completely self-supporting. No state tax dollars are used or requested. By issuing tax-exempt bonds to private and corporate investors and using a network of South Dakota lenders with offices and branches in 250 locations statewide, we continue to make below market interest loans to first-time homebuyers and affordable housing developers.
Several ancillary programs including down payment loans, homebuyer education, gap financing, and home improvement loans have evolved in support of the Authority's number one goal to promote Homeownership. However, they are funded by either the Authority or by private South Dakota employers and banks such as the recent investments by the Citigroup Foundation on behalf of homebuyer education and by Wells Fargo Bank and Wells Fargo Financial in support of deeper down payment loans for low-income homebuyers.
The Housing Tax Credit Program, the Authority's largest affordable rental housing development program is not dependent upon state tax dollars either. Again private corporate investors provide up-front equity for construction and rehabilitation in exchange for a 10-year stream of federal tax credits.
These examples of ideal public-private partnerships in support of affordable housing enable South Dakota to be one of the most aggressive per capita affordable housing providers in the nation. These things don't happen without strong leadership and foresight such as that of the 1973 Legislature.
In partnership with fellow state housing finance agencies, we are
again pursuing federal legislation to improve the Purchase Price
Limits on the First-time Homebuyer Program to ensure that families
that are within the federal Income Limits can find a decent home
to purchase in our South Dakota communities; to enable Housing Tax
Credit Program rents and eligibility to be based on the state median
income rather than county limits which currently prohibit any development
at all in the poorest rural counties in South Dakota; and to repeal
the Ten-Year rule which prohibits us from recycling prepayments
into new mortgages.
Partnership is a valuable tool. We've put it to great use in South Dakota and look forward to the continued support.
Dar Baum, Executive Director
SDHDA
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