WASHINGTON, D.C. – April 29, 2013 – (RealEstateRama) — Yesterday South Dakota Housing Development Authority’s (SDHDA) Board of Commissioners approved $2.78 million in Housing Tax Credits, $5.64 million in HOME Investment Partnerships Program funding and $1.09 million in Neighborhood Stabilization Program 3 (NSP3) funding for housing development and rehabilitation across the state.
SDHDA received 14 Housing Tax Credit applications requesting more than $5.4 million and 18 HOME Program applications requesting more than $11 million.
“SDHDA was once again faced with more applications than sufficient resources to fund all eligible projects,” said Lloyd Schipper, SDHDA Board Chairman. “Based on the Housing Tax Credit, HOME, and NSP3 funding available, 12 projects were funded which will result in over $40 million in total development costs, strengthening South Dakota’s housing stock and boosting our state’s economy.”
The 12 developments funded will provide South Dakotans with 206 newly constructed multifamily housing units, 17 newly constructed single family housing units, 100 rehabilitated multifamily housing units and a rehabilitated single family home.
“These programs help address the unique housing needs of South Dakota communities,” said Mark Lauseng, SDHDA Executive Director. “The housing units will help low-income residents, families in homeownership 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 2014 tax credits are worth over $23 million over their 10-year lifespan. SDHDA, as the credit-issuing agency, is responsible for the administration of the tax credits.
The HOME Investment Partnerships Program provides funds to developers and/or owners for acquisition, new construction, and rehabilitation of affordable housing. SDHDA receives $3 million a year from the U.S. Department of Housing and Urban Development for affordable single and multifamily housing opportunities statewide.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provided South Dakota with an additional $5 million for the Neighborhood Stabilization Program (NSP) that was originally established under the Housing and Economic Recovery Act of 2008. SDHDA had $1.1 million in NSP3 funding available for the acquisition and rehabilitation of single family homes or residential properties that have been abandoned or foreclosed, the demolishment of blighted structures, and the redevelopment of demolished or vacant properties.
Below is information regarding funded recipients:
Development Name: Brandon Heights Apartments
Development Location: TBD East Keystone Drive, Brandon
Developer: St. Joseph Catholic Housing, Inc
Housing Tax Credits Reserved: $292,913 (HTC Equity: $2,519,051) / HOME Funds Reserved: $800,000
Development Summary: The new construction of a three-story apartment building containing 32 housing units. There will be 6 one-bedroom units, 18 two-bedroom units and 8 three-bedroom units.
Development Name: Chasing Willows Apartments
Development Location: TBD E. 54th Street, Sioux Falls
Developer: Costello Investments, LLC
Housing Tax Credits Reserved: $550,214 (HTC Equity: $4,731,839) / HOME Funds Reserved: $930,000
Development Summary: The new construction of 2 three-story apartment buildings containing 62 apartment units. There will be 12 one-bedroom units, 34 two-bedroom units and 16 three-bedroom units.
Development Name: Habitat for Humanity Affordable Housing Canton
Development Location: 509 and 513 South Main, Canton
Developer: Habitat for Humanity of Greater Sioux Falls, Inc
HOME Funds Reserved: $72,330
Development Summary: The new construction of 1 two-bedroom and 1 four-bedroom ranch style single family homes with attached garages and paved driveways.
Development Name: Habitat for Humanity of Greater Sioux Falls Affordable Housing
Development Location: 908 North Blauvelt, Sioux Falls
Developer: Habitat for Humanity of Greater Sioux Falls, Inc
NSP3 Funds Reserved: $32,560
Development Summary: The rehabilitation of a four-bedroom single family home with a finished basement and detached two-car garage.
Development Name: Highland Five Homes
Development Location: 1521 E. 5th Street, Sioux Falls
Developer: Sioux Falls Housing Corporation dba Affordable Housing Solutions
HOME Funds Reserved: $171,162 / NSP3 Funds Reserved: $100,000
Development Summary: The new construction of a one-story apartment building for housing for older persons containing five apartment units. There will be 5 one-bedroom units.
Development Name: Jackson Heights Apartments
Development Location: TBD Jackson Street & 1st Avenue SE, Aberdeen
Developer: Aberdeen Housing Authority and Development for the Disabled, Inc.
Housing Tax Credits Reserved: $426,660 (HTC Equity: $3,413,279) / HOME Funds Reserved: $905,494
Development Summary: The new construction of a three-story apartment building containing 41 apartment units. There will be 19 one-bedroom units, 15 two-bedroom units, and 7 three-bedroom units.
Development Name: Mitchell Townhomes
Development Location: West 8th and North Montana Street, Mitchell
Developer: Antach Management Corporation
Housing Tax Credits Reserved: $327,654 (HTC Equity: $2,752,294) / HOME Funds Reserved: $610,000
Development Summary: The new construction of a four-building apartment complex containing 31 townhome units. There will be 16 two-bedroom units and 15 three-bedroom units
Development Name: Sicangu Village Estates III
Development Location: South of Mission on Hwy 83, Todd County
Developer: SWA Corporation
Housing Tax Credits Reserved: $194,916 (HTC Equity: $1,461,870) / HOME Funds Reserved: $500,000
Development Summary: The new construction of 15 three-bedroom single family homes.
Development Name: Sioux Falls Ministry Housing
Development Location: 812 North Minnesota Avenue, Sioux Falls
Developer: Sioux Falls Ministry Center
Housing Tax Credits Reserved: $267,396 (HTC Equity: $2,272,867) / HOME Funds Reserved: $195,412 / NSP3 Funds Reserved: $660,000
Development Summary: The new construction of a four-story building containing 31 apartment units. There will be 10 one-bedroom units, 12 two-bedroom units and 9 three-bedroom units.
Development Name: Sioux Falls YMCA Housing Initiative
Development Location: 230 South Minnesota Avenue, Sioux Falls
Developer: Y Housing LLC
Housing Tax Credits Reserved: $556,700 (HTC Equity: $4,843,290) / HOME Funds Reserved: $668,780
Development Summary: The rehabilitation of a four-story building to create 52 apartment units. There will be 4 zero-bedroom units, 23 one-bedroom units, 13 two-bedroom units, 10 three-bedroom units and 2 four-bedroom units.
Development Name: Spring Pointe Apartments
Development Location: 435 West 3rd Street, Sioux Falls
Developer: Sioux Falls Housing Corporation
NSP3 Funds Reserved: $299,089
Development Summary: The new construction of a two-story building to create four apartment units. There will be 2 two-bedroom units and 2 three-bedroom units.
Development Name: Turning Leaf Apartments
Development Location: 1309 & 1313 N. Cleveland Avenue, Sioux Falls
Developer: C.R. Lloyd Associates, Inc
Housing Tax Credits Reserved: $167,435 (HTC Equity: $1,456,684) / HOME Funds Reserved: $787,494
Development Summary: The acquisition and rehabilitation of 2 two-story buildings containing 48 apartment units. There are 26 one-bedroom units and 22 two-bedroom units.
