What is Affordable Housing?

If you’re in search of a new home, you may have come across the term “affordable housing” during your research. Finding a home can seem expensive or impossible to some, but affordable housing is made available to help those who need a little assistance. Affordably priced, energy-efficient and high-quality housing is all made possible through South Dakota Housing Development Authority. So, before you sign on the dotted line, be sure you’re familiar with the ins and outs of your affordable-housing options.  

Read on to learn more about some of our useful programs.  

What is Affordable Housing? 

Housing is considered affordable when you have to pay no more than 30 percent of your income for housing costs such as rent or mortgage and utilities. Therefore, an individual’s income is going to dictate what is affordable for them. Everyone deserves affordable housing so there are a variety of programs that are available to serve a diverse group of income levels. 

Affordable Rental Housing 

Public Housing and Housing Choice Vouchers – These are funded by the U.S. Department of Housing and Urban Development (HUD) and are administered by local housing authorities. In South Dakota’s largest cities, public housing is typically apartment complexes and in rural area typically duplexes or quadruplexes. The local Public Housing Authority (PHA) determines your rent based off of 30 percent of your income. To check availability, apply, or learn more, contact a local PHA. 

Public housing and the Housing Choice Voucher Program can have long wait times before you are eligible to receive assistance. If you don’t have that long to wait, there are some additional programs that can help keep rents affordable. 

Other Subsidized Housing and Funding Sources 

In addition to public housing or housing choice vouchers, South Dakota has other affordable options in the state in which rent is either calculated based on 30 percent of your household income or the rent is restricted at levels based on the average income in your county or other local areas. The apartment complexes can be found at sdhousingsearch.com. Contact the management office at any apartment building if you are interested in applying. 

Because the different program rules can make a big difference in whether or not an apartment is affordable for you, it is important to ask the landlord how the rent is calculated and how it changes if your income changes, when you are deciding whether to apply at a specific development. 

Affordable Homeownership Housing 

There are plenty of housing programs that are made to fit to a variety of situations. Whether you’re looking for a larger house or a starter home, there’s something for everyone.   

• First-Time Homebuyer Loan Program provides low-interest, fixed-rate mortgage loans for homebuyers purchasing their first homes.

• Repeat Homebuyer Loan Program helps second-time (or more) homebuyers get into their next home by providing low-interest, fixed-rate mortgage loans.

• Governor’s House Program provides affordably priced, energy-efficient, high-quality, and low-maintenance homes for purchase by low to moderate income households.