SDHDA Awards $8.5 Million in Housing Development and Rehabilitation Funding

PIERRE, SD – May 29, 2009 – (RealEstateRama) — The South Dakota Housing Development Authority’s (SDHDA) Board of Commissioners recently approved more than $2.5 million in Housing Tax Credits, $4.9 million in HOME Investment Partnerships Program, and $1.1 million in Neighborhood Stabilization Program funding that will help finance eleven developments across South Dakota.

The eleven developments funded will provide South Dakotans with 205 newly constructed multifamily housing units, 7 newly constructed single family housing units, and 71 rehabilitated multifamily and elderly housing units.

“We had a high level of competition with both Housing Tax Credits and HOME funds this year,” said Bob Sutton, President of the South Dakota Community Foundation and SDHDA Board Chair. “The Housing Tax Credit, HOME, and Neighborhood Stabilization Program developments approved will provide nearly $33 million in total development, strengthening South Dakota’s housing stock and boosting our state’s economy.”

In August of 2005, the SDHDA Board adopted the practice of allowing for forward reservations of future Housing Tax Credits allocated to South Dakota. A majority of the Housing Tax Credits awarded during this application round actually represent the state’s anticipated 2010 allocation.

“These programs address unique housing needs of communities around the state,” said Mark Lauseng, SDHDA Executive Director. “We are pleased to be able to provide funding for these developments to increase affordable housing opportunities for South Dakotans.”

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 project. The investors’ return is the annual tax credit and other economic benefits generated by the project. The U.S. Department of Treasury annually allocates South Dakota in excess of $2 million. 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 approximately $3.5 million per 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 property. SDHDA received approximately $19.6 million in NSP funding from the U.S. Department of Housing and Urban Development.

Below is information regarding funded recipients:

Development Name: Eagle Ridge Apartments Phase II Development
Location: 121 Stumer Road, Rapid City
Developer: Eagle Ridge Properties, LLC
Housing Tax Credits Reserved: $593,941 / HOME Funds Reserved: $800,000
Development Summary: The new construction of a 60 unit multifamily rental project within 5 buildings. There will be 30 two-bedroom and 30 three-bedroom apartment units.

Development Name: Grant Square Apartments
Development Location: TBD Karmya Circle, Sioux Falls
Developer: Grandview, LLC Housing Tax Credits Reserved: $542,190 / HOME Funds Reserved: $487,580
Development Summary: The new construction of a 48 unit multifamily rental project within 6 buildings. There will be 28 two-bedroom and 20 three-bedroom apartment units.

Development Name: Heritage Acres IV Apartments
Development Location: 2340 East Avenue, Sturgis
Developer: Development For The Disabled, Inc.
Housing Tax Credits Reserved: $278,826 / HOME Funds Reserved: $542,962
Development Summary: The new construction of a 32 unit rental project in 1 building for older persons (62 or older). There will be 28 one-bedroom and 4 two-bedroom apartment units.

Development Name: Sir Charles Apartments
Development Location: 118 East 3rd Street, Yankton
Developer: Development For The Disabled, Inc.
Housing Tax Credits Reserved: $321,137 / HOME Funds Reserved: $788,240
Development Summary: The acquisition/rehabilitation of a 34 unit rental project in 1 building for persons with mental disabilities. There are 34 one-bedroom apartment units.

Development Name: Sunshine Park Townhomes
Development Location: 1524 South Lawson Street, Aberdeen
Developer: Aberdeen Housing Authority and Beyond Shelter, Inc.
Housing Tax Credits Reserved: $401,916 / HOME Funds Reserved: $500,000 / Neighborhood Stabilization Program Funds Reserved: $293,121
Development Summary: The new construction of a 28 unit multifamily rental project within 5 buildings. There will be 20 two-bedroom, 6 three-bedroom, and 2 four-bedroom townhome units.

Development Name: VOA Pettigrew Heights Apartments
Development Location: 616 W. 12th Street, Sioux Falls
Developer: VOA-LM Development, LLC Housing Tax Credits Reserved: $417,864 / HOME Funds Reserved: $400,000 / Neighborhood Stabilization Program Funds Reserved: $863,954
Development Summary: The new construction of a 37 unit permanent supportive housing rental project in 1 building. There will be 12 zero-bedroom, 4 one-bedroom and 21 two-bedroom apartment units.

Development Name: Parkview Apartments
Development Location: 102-208 Ash St., 110-111 Birch St., 110 Parkview Drive, Arlington
Developer: Parkview Apartments, Inc.
HOME Funds Reserved: $800,000 / RHS 515 PRLF Funds Reserved: $570,000
Development Summary: The rehabilitation of an existing 42 unit multifamily rental project within 9 buildings and re-configuring to 37 apartment units. There will be 10 one-bedroom, 26 two-bedroom, and 1 three-bedroom apartment units.

Development Name: Beadle County Habitat Home
Development Location: 2394 Illinois Avenue SW, Huron
Developer: Habitat For Humanity of Beadle County, Inc.
HOME Funds Reserve: $40,000
Development Summary: The new construction of 1 three-bedroom single family ranch style home for sale to a qualified Habitat for Humanity family.

Development Name: East Central SD Habitat Home
Development Location: 1132 Olive Avenue North, Madison
Developer: Habitat For Humanity of East Central South Dakota
HOME Funds Reserve: $90,000
Development Summary: The new construction of 1 two-bedroom single family ranch style home for sale to a qualified Habitat for Humanity family.

Development Name: Oahe Habitat Home
Development Location: 805 N. Fogel Street, Ft. Pierre
Developer: Oahe Habitat For Humanity
HOME Funds Reserve: $98,800
Development Summary: The new construction of 1 three-bedroom single family ranch style home for sale to a qualified Habitat for Humanity family.

Development Name: Patriot Four Habitat Homes
Development Location: 473, 478, 489 Eisenhower Lane, 479 Sovereignty Lane, Box Elder
Developer: Black Hills Area Habitat For Humanity
HOME Funds Reserve: $433,700
Development Summary: The new construction of 2 three-bedroom and 2 four-bedroom single family ranch style homes for sale to qualified Habitat for Humanity families.

For more information and qualifications you may request more information by calling 605.773.3181, or writing to SDHDA at P.O. Box 1237, Pierre, SD 57501-1237.

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.

The South Dakota Housing Development Authority…Building a Better Quality of Life.

For More Information Contact: Mark Lauseng, Executive Director, 773-3181