The primary purpose of the Housing Trust Fund (HTF) is to expand the supply of decent, safe, sanitary, and affordable housing with primary emphasis placed on affordable housing for extremely low-income South Dakotans (30% AMI or below). The HTF was created under the Housing and Economic Recovery Act of 2008 with funding coming from Fannie Mae and Freddie Mac. The HTF Program provides funds to developers and/or owners for acquisition, new construction, and rehabilitation of multifamily rental housing. Other eligible activities include relocation assistance and reasonable administration and planning costs. All rental housing developed with HTF funds has a minimum 30 year affordability period. The HTF funds may be provided as zero percent loans, deferred payment loans, or forgivable loans.
The funds are intended to be used in conjunction with other funding sources such as HOME, HTC, and HOF. Applications for funding will be due annually on the last working day of August at 5:00 p.m. Central Time. Completed applications must be delivered (via U.S. Post Service, private mailing service, or hand delivery) to SDHDA by 5:00 p.m. Central Time on the application due date. Applications via facsimile or e-mail with not be accepted.
SDHDA will receive a minimum of $3.0 million in funding with 90% of funding for rental housing and 10% for administration. Funding in the amount of $600,000 annually will be set aside for housing developed on Indian reservations. Maximum subsidy limits can be found in Exhibit 6 of the HTF Allocation Plan.