For Immediate Release - May 23, 2006
For More Information Contact: Mark Lauseng, 773-3181
SDHDA Awards $4.2 Million in Housing Development and Rehabilitation Funding
The South Dakota Housing Development Authority’s Board of Commissioners recently approved more than $2.7 million in Housing Tax Credits and $1.4 million in HOME Investment Partnership Program funding for housing development and preservation across the state.
“We had a high level of competition with our Housing Tax Credits once again this year,” said Bob Sutton, Executive Director of the South Dakota Community Foundation and SDHDA Board Chair. “The Housing Tax Credit and HOME developments approved will provide nearly $42 million in total development, strengthening South Dakota’s housing stock and boosting our state’s economy.”
In August of 2005, the SDHDA Board adopted the practice of allowing for forward reservations of future Housing Tax Credits allocated to South Dakota. A majority of the Tax Credits awarded during this application round actually represent the state’s anticipated 2007 allocation.
The eleven developments funded will provide residents with 211 newly constructed multifamily housing units, 52 newly constructed single family housing units, and 177 rehabilitated multifamily housing units.
"These programs address unique housing needs of communities around the state,” said Mark Lauseng, SDHDA Executive Director. "We are pleased to be able to provide funding for these developments to increase affordable housing opportunities for South Dakotans."
In addition, the SDHDA Board of Commissioners approved $390,000 in HOME funding to be distributed to five regional organizations for homeowner rehabilitation. Inter-Lakes Community Action, Inc. in Madison, Neighborhood Housing Services of the Black Hills, Inc. in Deadwood, Northeast South Dakota Community Action Program in Sisseton, Rural Office of Community Services in Lake Andes, and Western South Dakota Community Action, Inc. in Rapid City will administer these funds in conjunction with other funding they receive to provide minor to moderate rehabilitation to homes of low-income homeowners.
The Internal Revenue Code of 1986 established the Housing Tax Credit Program as an incentive for construction, rehabilitation and acquisition/rehabilitation of housing for low-income households. Developers of housing tax credit projects typically raise equity capital for their projects by syndicating the tax credits to investors who are willing to invest in the project. The investors' return is the annual tax credit and other economic benefits generated by the project. The U.S. Department of Treasury annually allocates South Dakota in excess of $2 million. SDHDA, as the credit-issuing agency, is responsible for the administration of the tax credits to qualifying housing developers.
The HOME Investment Partnership Program provides funds to developers and/or owners for acquisition, new construction, and rehabilitation of affordable housing. SDHDA receives approximately $3.5 million per year from the U.S. Department of Housing and Urban Development for affordable single and multifamily housing opportunities statewide.
The South Dakota Housing Development Authority (SDHDA) is an independent, quasi-public agency that finances and develops affordable housing opportunities for low and moderate-income residents throughout South Dakota. SDHDA is totally self-supporting and receives no tax money, appropriations or other funding from the state. SDHDA does not discriminate against any person because of race, color, creed, religion, sex, disability, familial status or national origin. SDHDA is a proud partner of the state’s 2010 Initiative to “Brand and Develop South Dakota’s Quality of Life as the Best in America.” For more information, visit www.sdhda.org or www.2010initiative.com.
The South Dakota Housing Development Authority…Building a Better Quality of Life.
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Below is information regarding funded recipients:
Development Name: Williamsburg Townhomes Phase II
Development Location: Wheatland Avenue, Sioux Falls
Developer: Costello Realty
Housing Tax Credits Reserved: $417,726
Development Summary: Williamsburg Townhomes II is new construction of 56 townhouse units. There will be 42 two-bedroom and 14 three-bedroom units.
Development Name: Sicangu Village Estates
Development Location: Highway 83, Mission
Developer: S.W.A. Corporation
Housing Tax Credits Reserved: $182,235
Development Summary: Sicangu Village Estates is new construction of 15 three-bedroom single family homes for lease purchase.
Development Name: Northern Heights Development II
Development Location: East 71st and 72nd Street North and North Boulder Avenue, Sioux Falls
Developer: Donald A. Dunham Jr.
Housing Tax Credits Reserved: $308,705
Development Summary: Northern Heights II is new construction of 36 single family homes for lease purchase. There will be 29 three-bedroom and 7 four-bedroom units.
Development Name: Falls Park Apartments
Development Location: Career Avenue, Sioux Falls
Developer: McDonald Ladd Development, LLC
Housing Tax Credits Reserved: $654,336
Development Summary: Falls Park Apartments is new construction of 74 apartments within 6 buildings. There will be 59 three-bedroom and 14 four-bedroom units.
Development Name: Foothills East Apartments
Development Location: Parker Drive, Box Elder
Developer: David Blair
Housing Tax Credits Reserved: $242,655
HOME Funds Reserved: $1,106,000
Development Summary: Foothills East is acquisition and rehabilitation of a 72 unit family development. These units are all two-bedroom.
Project Name: Knollwood Heights
Project Location: 10, 20, 100, and 120 Surfwood Drive, Rapid City
Developer: David Blair
Housing Tax Credits Reserved: $365,714
Development Summary: Knollwood Heights is an acquisition and rehabilitation of an existing multifamily development consisting of 84 apartment units within four buildings. There are 12 one-bedroom and 72 two-bedroom units.
Development Name: Arbordale Apartments and Townhomes
Development Location: 2311, 2321, and 2400 Flag Mountain Drive, Pierre
Developer: St. Joseph Catholic Housing, Inc.
Housing Tax Credits Reserved: $95,531
Development Summary: Arbordale is acquisition and rehabilitation of the multifamily development Birchwood Apartments and Townhomes in Pierre. There are 2 one-bedroom units, 14 two-bedroom, and 8 three-bedroom units.
Development Name: Hunters Gate Townhomes Phase II
Development Location: 113 – 121 S. Cliff Avenue, Harrisburg
Developer: Costello Realty
Housing Tax Credits Reserved: $241,411
HOME Funds Reserved: $450,000
Development Summary: Hunters Gate II is the new construction of 30 townhome units in five buildings. There will be 17 two-bedroom and 12 three-bedroom units.
Development Name: HighPointe Townhomes Phase II
Development Location: TBD High Pointe Street, Tea
Developer: St. Joseph Catholic Housing, Inc.
Housing Tax Credits Reserved: $242,011
HOME Funds Reserved: 450,000
Development Summary: HighPointe Townhomes II is the new construction of 30 townhome units in five buildings. There will be s17 two-bedroom and 12 three-bedroom units.
Development Name: Cornerstone Apartments
Development Location: Quincy Street & East Boulevard, Rapid City
Developer: Development For The Disabled, Inc.
HOME Funds Reserved: $563,075
Development Summary: Cornerstone Apartments is the new construction of one 3-story building for transitional housing for homeless families with children. The building includes 16 two-bedroom and 8 three-bedroom units.
Development Name: Habitat for Humanity House #19
Development Location: 118 17th Street NW, Watertown
Developer: Habitat for Humanity – Greater Watertown Region, Inc.
HOME Funds Reserved: $15,000
