Housing Development Financing Programs Fuel Community Growth
Housing plays a pivotal role in fostering growth and prosperity in South Dakota. South Dakota Housing offers a range of development financing programs aimed at addressing the diverse needs of our communities and residents. In this guide, we'll introduce some of these programs, detailing their objectives and target audiences.
Security Deposit Assistance Program
This program is designed to assist low-income renters who may face barriers when securing a rental property due to the upfront costs of security deposits. It offers financial support to ensure access to safe and stable housing for individuals and families in need. Partner agencies can apply for funding from SD Housing.
Bond Financing
Bond Financing provides an avenue for developers and investors to access low-cost capital for affordable housing projects. By issuing tax-exempt bonds, this program incentivizes the development of affordable housing in South Dakota, making it an attractive option for those looking to invest in or develop affordable housing.
Housing Needs Study Program
This program equips policymakers, planners, and community leaders with vital data and insights into housing needs within South Dakota. Through comprehensive research and analysis, it provides the information necessary to make informed decisions and implement effective housing policies. Communities that have populations of 10,000 or less are eligible to participate in this program.
DakotaPlex
DakotaPlex is a modern concept to address the shortage of affordable housing in our rural communities. Two and three-bedroom units can be combined to create a duplex, triplex or quadruplex. Communities with populations of 5,000 or less are eligible.
Housing Opportunity Fund
Housing Opportunity Fund (HOF) is a program designed to support the creation and preservation of affordable housing across South Dakota by providing financial assistance to developers and non-profit organizations for the acquisition, new construction, or rehabilitation of single-family and multifamily rental properties that cater to low- and moderate-income households.
BuildSpec
BuildSpec is designed to incentivize builders to build speculative, affordable single-family homes in the state. The BuildSpec program provides low-interest construction loans to builder members of the South Dakota Home Builders Association or not-for-profit development groups to create quality, affordable homes for South Dakotans. Homes are built for sale at or below SD Housing's First-Time Homebuyer purchase limits.
In South Dakota, we believe that a comprehensive approach to housing is the key to growth and prosperity. These development financing programs are designed to support organizations, who in turn provide housing solutions tailored to the unique needs of renters seeking security and developers eager to invest in affordable housing. By addressing these needs, we're not only creating a better future for our communities but also fueling the growth and prosperity of South Dakota.
If you're interested in any of these programs or have questions, don't hesitate to reach out to South Dakota Housing. We're here to help you achieve your housing goals and contribute to the well-being of our great state. For more information about being a developer in South Dakota, look here.
