HUD awards $566,000 for affordable housing and economic development in rural South Dakota

WASHINGTON, September 10, 2007 – Housing and Urban Development Secretary Alphonso Jackson today awarded $566,000 to two rural housing programs in South Dakota to stimulate economic development, create jobs and produce more affordable housing. The funding is part of $16.8 million in grants provided through HUD’s Rural Housing and Economic Development Program nationwide.

In addition to the HUD grants announced today, rural communities are expected to generate more than $283,000 from other public and private sources to promote economic development and employment.

“These grants will go a long way toward producing more affordable housing in rural communities across our country,” said Jackson. “HUD funding, and the private investment these grants will generate, will offer more than just an affordable home to working families in rural areas. These grants will trigger economic development and breathe new life into rural neighborhoods that are desperate to grow.”

Rural Housing and Economic Development (RHED) grants help pay for land acquisition, new home construction, housing demolition, infrastructure improvements and construction training. Other possible uses include homeownership and financial counseling; financial assistance to homeowners, businesses and developers; creating microenterprises and small business incubators; and establishing lines of credit or revolving loan pools to benefit the local business community.

Qualified applicants are local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, State housing finance agencies and/or local economic development agencies. RHED grants have provided nearly $190 million, creating more than 12,000 jobs, assisting nearly 8,200 businesses and producing nearly 20,000 affordable homes.

Rural communities will use this funding as seed money to pay the start-up costs for housing or economic development projects. These grants will also help organizations to hire and train their staffs, develop strategic plans and acquire office space and other needed facilities.

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

The following South Dakota communities will receive grants under HUD’s Rural Housing and Economic Development Program this year:

Four Bands Community Fund, Inc. Eagle Butte, SD will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. This Innovative award will assist the applicant in renovating 30 homes and assist 20 businesses in obtaining a loan. Partners for this project are First Financial Bank and Okiciyapi Tipi Habitat for Humanity. The proposed resources leveraged for this endeavor is $150,000.

Contact Person: Tanya Fiddler
101 South Main Street
Eagle Butte, SD 57625
Telephone Number: (605) 964-3687

Mazaska Owecaso Otipi Financial, Inc. in Pine Ridge, SD will receive a Rural Housing and Economic Development Innovative grant award in the amount of $266,000. This Innovative award will assist the applicant in providing homeownership classes to 40 residents and provide six families with mortgage loans. Partners for this project are Oglala Sioux Tribe Partnership for Housing, and Lakota Funds. The proposed resources leveraged for this endeavor is $133,000.

Contact Person: Colleen Steele
P.O. Box 1996
Pine Ridge, SD 57770
Telephone Number: (605) 867-1555

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

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MBA - Mortgage Bankers Association