For Immediate Release, September 20, 2005
South Dakota Housing Development Authority
For more information contact Dar Baum , 773-3617
SDHDA Board Works to Meet Housing Demands
The South Dakota Housing Development Authority's (SDHDA) Board of Commissioners recently took action to move forward on housing Developments in Mission , Rapid City , and Sioux Falls .
In taking such action, the Board adopted the practice of allowing forward reservations of future Housing Tax Credits to be allocated to South Dakota . This adds SDHDA to the list of 15 other state housing finance agencies which allow forward reservations meaning the Board is taking the opportunity to forward reserve all or a portion of SDHDA's 2006 allocation of $2.2 million in Housing Tax Credits.
After a lengthy discussion, the Board agreed to allow forward reservations because, “We saw a huge affordable housing need this year that could be filled by adopting this practice,” said Bob Sutton, Executive Director of the South Dakota Community Foundation and SDHDA Board Chair.
“Additionally, unlike many recent years, we had good deals in areas of need that were left on SDHDA's Waiting List following the initial Housing Tax Credit selection period this year.”
Sunrise III Townhomes, in Mission , will consist of 100 affordable housing units within a ten building complex. The development will have 60 two-bedroom units, and 40 three-bedroom units. The complex will also feature a children's playground and a large central laundry facility.
“Our job is to find innovative ways in making sure that the housing needs of our residents are met. This action shows the Board's commitment to building a better quality of life for South Dakotans ,” stated Dar Baum, SDHDA Executive Director. “With more than $8 million in total costs going into the development, it will also be a great injection into Mission 's economy,” she added.
The Board also reserved forward commitments for developments in Sioux Falls and Rapid City .
Eagle Ridge Apartments, located on Stummer Road in Rapid City , will consist of 96 housing units, 48 two-bedroom units and 48 three-bedroom units. Amenities will include all appliances, washer/dryer hook-ups, central air conditioning and a playground area. Single car garages will also be available for tenants to rent. The total costs of the development will exceed $9.7 million.
Cathedral Heights , located near St. Joseph Catholic Church in Sioux Falls , will consist of 30 housing units, 16 affordable units and 14 market rate units, and an additional managers unit. The development will have 21 one-bedroom units and 10 two-bedroom units. The development will also feature an exercise room, activity center and underground parking, among many other amenities.
The Internal Revenue Code of 1986 established the Housing Tax Credit Program as an incentive for construction and 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 $2 million. SDHDA, as the credit-issuing agency, is responsible for the administration of the tax credits to qualifying housing developers.
Although the Qualified Allocation Plan (QAP) has previously allowed forward committing Tax Credits from future year's allocations, this marks the first year the Board of Commissioners have exercised such authority beyond awarding limited amounts to make a project whole.
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, handicapped, 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 .
