Program Objective

The Rural Site Development Program can be used to stimulate the development of new affordable housing subdivisions in rural communities. The funds are leveraged with other resources to the maximum extent possible. Local lender involvement is required.

SDHDA expects to partner with a local lender to accomplish the financing, with SDHDA usually taking the second mortgage position on up to 50 percent of the total financing needed.  Financing packages may include loans/guarantees for a limited number of spec houses.

Communities outside Rapid City and Sioux Falls are eligible. Research into the proposed community must be adequate to substantiate a need for the number of the proposed lots at the projected price. An acceptable marketing plan will be required which also includes the expected date for building to start.

Public or private nonprofit or profit-oriented individual(s), corporations, partnerships, limited partnerships, or organizations.

The purchase price of the affordable homes within the development may be limited at SDHDA's discretion. Loans are generally limited to projects of no less than 5 and no more than 40 lots; however, SDHDA will consider allowing more lots if deemed feasible. The loan amount will be determined based on availability of other financing resources and upon scope of construction required. Loans will not exceed five years and interest rates and repayment terms will vary.

Each project will be presented to the SDHDA Board of Commissioners for acceptance, deferral, or denial. If accepted, a 90 day conditional commitment will be issued.

Closing: A non-refundable fee of one percent (1%) of SDHDA's loan amount will be charged at the loan closing.