Pierre, SD – May 6, 2010 – (RealEstateRama) — The South Dakota Housing Development Authority’s (SDHDA) Board of Commissioners has approved more than $1.5 million in Housing Tax Credits, $4.5 million in HOME Investment Partnerships Program, and $3.2 million in Neighborhood Stabilization Program funding for housing development and preservation across the state.
“With the high level of competition for funds this year, SDHDA did not have sufficient resources to fund all eligible applications,” said Lloyd Schipper, SDHDA Board Chairman. “Based on the Housing Tax Credit, HOME and Neighborhood Stabilization Program funding available, 10 development projects will result in over $27 million in total development, strengthening South Dakota’s housing stock and boosting our state’s economy.”
The 10 developments funded will provide residents with 153 newly constructed multifamily housing units, six newly constructed single family housing units, and 150 rehabilitated multifamily and elderly housing units.
“These programs address the unique housing needs of South Dakota communities,” said Mark Lauseng, SDHDA Executive Director. “The housing units will help low-income residents, Habitat for Humanity families 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 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 about $3.8 million a year from the U.S. Department of Housing and Urban Development for affordable single and multifamily housing opportunities statewide.
Funded under the Housing and Economic Recovery Act of 2008, the Neighborhood Stabilization Program provides funds to redevelop neighborhoods by acquiring, rehabilitating, or redeveloping foreclosed, vacant, or abandoned properties. SDHDA received $19.6 million in NSP funding from the U.S. Department of Housing and Urban Development.
Below is information regarding funded recipients:
Development Name: Brookfield Subdivision Homes
Development Location: TBD Cobalt Drive & Ambrose Drive, Rapid City
Developer: Teton Coalition, Inc.
HOME Funds Reserved: $562,054
Development Summary: The new construction of 4 single-family, three-bedroom split-foyer style homes with attached garages for sale to qualified families.
Development Name: Columbus Heights Apartments and Townhomes
Development Location: 204 S. 4th Street and 604 S. Madison Street, Milbank
Developer: GROW South Dakota
NSP Funds Committed: $1,599,500
Development Summary: The acquisition and rehabilitation of 30 one-bedroom apartments for the elderly and 30 multifamily townhouses, consisting of 22 two-bedroom and 8 three-bedroom units.
Development Name: Deer Hollow Apartments Phase II
Development Location: 817, 903, 911, & 917 Ruud Lane, Hartford
Developer: Costello Realty, Inc.
Housing Tax Credits Reserved: $366,372 / HOME Funds Reserved: $775,000
Development Summary: The new construction of a 32-unit multifamily rental project within four apartment buildings and one community building. There will be 16 units that are two-bedroom and 16 that are three-bedroom apartments.
Development Name: Drexel Place Apartments
Development Location: TBD Spruce Street, Harrisburg
Developer: Grandview, LLC
Housing Tax Credits Reserved: $489,580 / HOME Funds Reserved: $800,000
Development Summary: The new construction of a 48-unit multifamily rental project within a six-building project. There are 24 two-bedroom and 24 three-bedroom apartment units.
Development Name: Harrisburg Habitat Homes
Development Location: 407 Cottonwood Drive & 303 Jeannie Lane, Harrisburg
Developer: Habitat For Humanity of Greater Sioux Falls, Inc.
HOME Funds Reserved: $84,800
Development Summary: The new construction of 1 four-bedroom and 1 six-bedroom single-family ranch-style homes with attached garages for sale to qualified Habitat for Humanity families.
Development Name: Heritage Court Apartments
Development Location: 105 SE Front Avenue, Wagner
Developer: Parkview Villa, Inc.
NSP Funds Committed: $787,300
Development Summary: The acquisition and rehabilitation of an existing 34-unit elderly development consisting of one-bedroom units.
Development Name: Monterey Apartments
Development Location: TBD East Brennan Drive, Sioux Falls
Developer: Costello Realty, Inc.
Housing Tax Credits Reserved: $178,709 / HOME Funds Reserved: $225,000
Development Summary: The new construction of a 16-unit multifamily rental project within two buildings. There will be 8 two-bedroom and 8 three-bedroom apartment units.
Development Name: Pettigrew Heights Apartments
Development Location: TBD Duluth or Spring Avenue, Sioux Falls
Developer: St. Joseph Catholic Housing, Inc.
Housing Tax Credits Reserved: $293,940 / HOME Funds Committed: $800,000 / NSP Funds Committed: $864,000
Development Summary: The new construction of a 57-unit multifamily rental project providing housing for older persons. There will be 45 one-bedroom and 12 two-bedroom apartments.
Development Name: Southgate Apartments
Development Location: 202 20th Street SE, Huron
Developer: Southgate Apartments Limited Partnership
HOME Funds Reserved: $558,000
Development Summary: The rehabilitation of an existing 24-unit multifamily rental project within 3 buildings, with 16 two-bedroom and 8 three-bedroom townhome units.
Development Name: Village Green Apartments
Development Location: 1105 & 1019 NE 4th St, 1006 NE 3rd St., 416 N. Division Ave., Madison
Developer: Innovative Housing Solutions, Inc.
Housing Tax Credits Reserved: $196,275 / HOME Funds Reserved: $752,482
Development Summary: The acquisition and rehabilitation of an existing 32-unit multifamily rental project within 4 buildings; with 32 two-bedroom apartment units.
The 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. SDHDA is a proud partner of the State’s 2010 Initiative to “Brand and Develop South Dakota’s Quality of Life as the Best in America.” For more information, visit www.sdhda.org or www.2010initiative.com.