- How do I finance purchase of rental housing?
- How do I develop and build rental housing?
- How do I rehabilitate existing rental housing?
- How do I build, acquire or rehab for sale housing?
- How do I create supportive housing for homeless and at risk?
- How do I develop single family lots?
- HOME
- Housing Tax Credits
- Bond Financing Continuum of Care
- Emergency Shelter Grant
- Tips to Consider
Quick Links |
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2008 HTC/HOME Pro Forma |
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1987 through 2008 Housing Tax Credit Reservation List(.pdf format) |
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Housing Tax Credit Cost Certification Forms |
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Housing Tax Credit 10% Cost Certifications |
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Housing Tax Credit Program
2008 QAP Amended 2-08 (amended 2/6/08)
2008-2009 HOME Program Allocation Plan
2008 HOME/HTC Application-Non-fillable PDF
2008 HOME-HTC Application Form-Fillable PDF
2006-2007 HTC Qualified Allocation Plan .pdf
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Program Description
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.
Funding Source
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.
Eligibility Requirements 
Projects eligible for housing tax credits involve construction and/or preservation of decent, safe, sanitary and affordable housing in areas of the greatest housing need. A minimum of either 20 percent of the total units must be available to tenants whose incomes do not exceed 50 percent of the area median gross income; or 40 percent of the total units must be available to tenants whose incomes do not exceed 60 percent of the area median gross income. Gross rents on the low-income units, including tenant-paid utilities, cannot exceed 30 percent of the qualifying monthly median income. The project owner must also enter into an agreement to meet the low income occupancy requirements for a minimum of 15 years beyond the initial 15 year compliance period.
Eligible Activites
Eligible activities include new construction, substantial rehabilitation or acquisition with substantial rehabilitation. Federal law requires substantial rehabilitation costs to be at least $3,000 per unit or 10 percent of the original basis, whichever is greater. SDHDA further requires rehabilitation costs to be at least 40 percent of the total project costs to receive 9 percent credit and at least 20 percent of the total project costs to receive 4 percent credit. Some exceptions do apply to this requirement.
Application Procedure
SDHDA annually presents its Qualified Allocation Plan which provides the system for allocation of tax credits. The QAP and application package are available from SDHDA. The tax credits are awarded on a statewide, competitive basis. Applications are due the last working day in February of each year. Additional rounds may be established if credits are available.
