"We had a high level of competition with our Housing Tax Credits once again this year," said Bob Sutton, executive director of the South Dakota Community Foundation and SDHDA board chair. "The Housing Tax Credit and HOME developments approved will provide nearly $42 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 Tax Credits awarded during this application round actually represent the state's anticipated 2007 allocation.
The 11 developments funded will provide residents with 211 newly constructed multifamily housing units, 52 newly constructed single family housing units, and 177 rehabilitated multifamily housing units.�
"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."
In addition, the SDHDA Board of Commissioners approved $390,000 in HOME funding to be distributed to five regional organizations for homeowner rehabilitation.� Inter-Lakes Community Action, Inc. in Madison, Neighborhood Housing Services of the Black Hills, Inc. in Deadwood, Northeast South Dakota Community Action Program in Sisseton, Rural Office of Community Services in Lake Andes, and Western South Dakota Community Action, Inc. in Rapid City will administer these funds in conjunction with other funding they receive to provide minor to moderate rehabilitation to homes of low-income homeowners.�
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 Partnership 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.
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.