Development of new housing and rehabilitation of existing housing is vital in meeting the demand for affordable housing statewide. SDHDA administers a number of programs to encourage and assist in the development of affordable housing. If you are interested in developing or rehabilitating housing there are 10 Tips for Housing Development that should be considered. The first item is to determine the need for the housing by conducting a Needs Assessment of the area involved. The assessment should include a breakdown of the community profile, employment opportunities, population and demographics of the community with a conclusion of the type and need for affordable or market rate housing. The Needs Assessment requirements for HOME and Housing Tax are outlined in the allocation plans. Housing Tax Credit projects must have Needs Assessments completed by a third party as listed on the Market Analysis Companies listing. To review the other Housing Tips, please follow the above link.
SDHDA provides financing opportunities to develop housing for low income families and can be combined with conventional financing to provide mixed income housing or 100% affordable housing. Typically, properties with less then 24 units utilize the HOME Program, and larger projects often use Housing Tax Credits or Bond Financing. Some projects may require the use of two or more of these programs. The programs can be utilized to acquire and rehabilitate or construct new multi-family or single family housing units. Funding for the development of single family lots is also an option through the HOME Program and Rural Site Development.
Intensive services are key to the success of transitional and permanent housing for certain households. If you are interested in developing service enriched housing, the housing portion of the project can be financed by utilizing the programs listed above in addition if the housing is for homeless individuals and families the applicant may also access Continuum of Care funding from HUD.
When putting together an application for SDHDA financing, the applicant must keep the following things in mind:
- Focus on financial feasibility - the project must cash flow with appropriate rent restrictions and estimated expenses.
- The Needs Assessment must evidence a need for the housing proposed.
- What is the cost to complete this development and what are the other funding sources available?