Recently South Dakota Housing Development Authority’s (SDHDA) Board of Commissioners approved $2.64 million in Housing Tax Credits and $2.86 million in HOME Investment Partnerships Program funding for housing development and rehabilitation across the state.
SDHDA received 14 Housing Tax Credit applications requesting more than $6.2 million and 13 HOME Program applications requesting more than $5.9 million.
“SDHDA was once again faced with more applications than sufficient resources to fund all eligible projects,” said Lloyd Schipper, SDHDA Board Chairman. “Based on the Housing Tax Credit and HOME funding available, seven projects will result in over $31 million in total development costs, strengthening South Dakota’s housing stock and boosting our state’s economy.”
The seven developments funded will provide South Dakotans with 195 newly constructed multifamily housing units, two newly constructed single family housing units, and 50 rehabilitated multifamily housing units.
“These programs help address the unique housing needs of South Dakota communities,” said Mark Lauseng, SDHDA Executive Director.
“The housing units will help low-income residents, families in homeownership and elderly residents across the state.” The Internal Revenue Code of 1986 established the Housing Tax Credit Program as an incentive for construction, rehabilitation and acquisition/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 projects. The investors' return is the annual tax credit and other economic benefits generated by the projects.
The U.S. Department of Treasury annually allocates South Dakota in excess of $2.5 million for the effort. SDHDA, as the credit-issuing agency, is responsible for the administration of the tax credits to qualifying housing developers.
The HOME Investment Partnerships Program provides funds to developers and/or owners for acquisition, new construction, and rehabilitation of affordable housing. SDHDA receives $3 million a year from the U.S. Department of Housing and Urban Development for affordable single and multifamily housing opportunities statewide.
Below is information regarding funded recipients:
South Dakota Housing Development Authority (SDHDA) is an independent, quasi-public agency that finances and develops affordable housing opportunities for low and moderate-income residents throughout South Dakota. SDHDA is totally self-supporting and receives no tax money, appropriations or other funding from the State. SDHDA does not discriminate against any person because of race, color, creed, religion, sex, disability, familial status or national origin. For more information, visit www.sdhda.org. The South Dakota Housing Development Authority…Building a Better Quality of Life.