SDHDA makes funds available to Indian reservations and Sioux Falls To further enhance homeownership opportunities on Indian reservations, the South Dakota Housing Development Authority (SDHDA) is making funds available from President Bush's American Dream Downpayment Initiative (ADDI) to Indian reservations.
This means that first-time homebuyers purchasing a home on the state's nine Indian reservations using HUD's 184 Loan Guarantee Program may also apply through the lender which originates their first mortgage, for downpayment and closing cost assistance through a secondary loan. Currently, Norwest Mortgage is the only lender in South Dakota originating HUD 184 loans.
ADDI funds will be set aside for Indian reservations for the first 15 months after receipt and opened statewide, thereafter, if funds remain. The authority's decision to limit the funds to reservations relates to the fact that several other down payment programs are available for off-reservation lands.
"Homeownership is one of the most critical quality of life issues faced on our South Dakota reservations," said Gov. Mike Rounds. "I am committed to enhancing homeownership opportunities on our reservations. Making these funds available for our citizens and our reservations is critical."
The SDHDA Board also extended up to $1 million of its annual HOME loan program of $3.9 million, to the city of Sioux Falls and to the Indian reservations. The HOME Program provides developers of both homeownership and rental housing for very low-income and low-income households with acquisition, new construction or rehabilitation loans.
Previously, because of high program demand, Sioux Falls and Indian reservations were excluded from the HOME Program because of similar funding they continue to receive directly from the U.S. Department of Housing and Urban Development (HUD). Because of softer markets in some areas and reduced demand for the state's funding, the Board adopted a program amendment to extend loans to projects in Sioux Falls and on Indian reservations. Applications for HOME funds are being accepted on a first-come, first serve basis the last week of August and September.
"I am very pleased the Authority Board pursued this opportunity as one of their 2010 Initiative priorities and is taking actions to carry it out," said Rounds. "Certainly the needs in these areas continue to exceed their current funding sources, and I anticipate that the funds will be expended very quickly."
In addition, to further enhance the ability to preserve and develop quality affordable housing, the Authority also increased the unit cost limits under the HOME and Housing Tax Credit Programs.
Details of these actions can be found on SDHDA's Web site www.sdhda.org.
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, handicapped, familial status or national origin.