Available Development Programs

SD Housing / Develop Housing / Available Development Programs

 

Security Deposit Assistance Program

Bond Financing

Housing Needs Study Program

DakotaPlex

 

Community Housing Development Program

Relocation and Displacement

Neighborhood Stabilization Program

 
 

10 Tips for Housing Development

 We receive many inquiries regarding the process of developing affordable housing. The following steps are an excellent summary borrowed from a neighboring state.

 

  1. Assess Housing Needs

    State Housing Agencies offer guidelines, and current building data is available from local governments.

  2. Confirm Political Will

    Support of local elected officials and citizens is essential. Consult elected officials, planning commissions, and local government staff.

  3. Evaluate Site Options

    Consider existing zoning conditions, site surveys, soil tests, environmental restrictions, availability of transportation, and child care services.

  4. Secure Land

    At a minimum, the local housing agency should secure an option on the selected parcel of land. Acquiring a site is a major determinant in securing construction and permanent financing. Take action to mitigate any hidden costs, such as environmental issues, soil conditions, or easements.

  5. Set Design Standards

    Together with the local planning commission or organized neighborhood property owners, establish conceptual design guidelines including floor plans, exterior materials, landscaping, lighting, and parking standards. Affordable housing should complement existing structures within the community.

6. Obtain Financial Commitments

Complete proforma and cash flow analyses. Secure conditional private and public financing commitments.

7. Hire A Developer

The designated housing organization can determine whether it needs a developer, owner’s representative, or a construction manager.

8. Assemble Project Team

Including architects, building owners, lenders, planners, lawyers, and general contractors.

9. Complete Final Development Plan

Finalize land use approvals, financial commitments, design guidelines, construction documents, and required permits and licenses.

10. Manage Construction and Occupancy

The developer will be responsible for hiring subcontractors, supervising construction, and meeting all local occupancy standards. The developer should manage the property for at least one year after full occupancy.

 

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SOURCE: "Ten Steps to Affordable Housing" was borrowed from the Winter 2001 issue of the CHFA Exchange. Published with permission of the Colorado Housing Finance Authority.

 
 

Set Asides

SDHDA distributes HOME funds geographically throughout eligible areas of the state, taking into consideration the following set-asides:

  • Community Housing Development Organizations (CHDO)

    CHDO Application

    CHDO Attachment A

    Set-aside is for a nonprofit entity that has received a tax-exempt ruling under Section 501(c)(3) or (4) of the Internal Revenue Code and meets the CHDO requirements.

    15% (approximately $450,000)

  • Homeowner Rehab Policy And Procedures Manual

    Homeowner Rehab Program Application

    Set-aside is for Community Action Program agencies and qualified nonprofit entities for the purpose of rehabilitating single-family, owner-occupied properties.

    $1,000,000

    (maximum of $200,000 per sub-recipient per year)

  • Homebuyer Assistance Program Term Sheet

    Homebuyer Assistance Program Application

    HOME Homebuyer Feasibility Analysis Tool

    Set-aside provides gap financing, downpayment or closing cost assistance to qualified homebuyers approved for the purchase of a home, including the Governor’s House.

    $200,000

  • Security Deposit Assistance Program Term Sheet

    Security Deposit Assistance Program Application

    Set-aside is for qualified Public Housing Authorities and qualified nonprofit entities for the purpose of providing security deposits to qualified families.

    $200,000

  • Set-aside is for projects determined by SDHDA to be difficult to develop, based on site location, size of project, target tenant population, and inability to repay with normal underwriting procedures.

    $500,000

  • Set-aside is for the development of single family homeownership; the homeowner must be identified at time of application.

    $500,000

  • Set-aside is for projects in communities of 5,000 or less in population.

    $1,000,000

Further requirements can be found in the HOME Allocation Plan.