GOVERNOR HOUSE PROGRAM

HOME BUYER'S RESPONSIBILITIES:

program guidelines

Helpful Checklist

Provide the lot

Purchase the building permit and/or other permits

Provide the foundation

Utility hookups and fees

Floor coverings and appliances

APPLICATION INFORMATION:

Brochure

*SDHDA reserves the right to reject any proposed purchase if SDHDA determines, in its sole discretion, that the proposed purchase does not further the goals of the Governor's House Program or SDHDA's goals and purposes. SDHDA also reserves the right to impose additional qualifications and restrictions under the Governor's House Program or with respect to any purchase under the Program if SDHDA determines, in its sole discretion, that such qualifications and restrictions are necessary to protect the integrity of the Program or the interests of homebuyers.

SOUTH DAKOTA HOUSING PROGRAMS:

First-time Homebuyer Program

Providing low interest rate mortgage loans to qualified first-time homebuyers, includes the current income and purchase price guidelines.

Employer Mortgage Assistance Program (EMAP)

A partnership loan program with South Dakota employers to provide Human Resource benefits in support of economic development, employee attraction, and employee retention.

Loan Assistance Program (LAP)

Providing closing cost, down payment assistance, and gap financing for qualified homebuyers.

Community Home Improvement Program (CHIP)

Loans to provide reduced rate financing to low and moderate income homeowners for the repair/renovation of their homes.

FEDERAL HOUSING PROGRAMS:

USDA provides direct loans and grants to credit worthy residents who would otherwise be unable to obtain financing for a family home. Guaranteed loans are made by commercial lenders for single family housing. Direct and guaranteed loans are made to provide multi-family housing or apartments for low-income rural residents.

Programs provided include the following:

Guaranteed Rural Housing Loans

Home Ownership Loans

Section 504 Rural Home Repair Loans and Grants

Rural Rental Housing Loans

Section 538 Rural Rental Housing Guaranteed Loans

Rural Housing Site Loans

Self Help Housing Loans

Technical Assistance for Self-Help Housing

Housing Preservation Grants

Farm Labor Housing

Equal Opportunity for USDA Rural Development Loan and Grant Recipients

Housing Funding Opportunities

South Dakota Housing

HOME

Deadline: August

The primary purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing for very low-income and low-income households as determined by the Income Limits. U.S. Department of Housing and Urban Development provides annual funding to participating jurisdictions (SD Housing) to develop their own programs in partnership with local governments, nonprofit organizations, and the private sector. The HOME Program provides funds to developers and/or owners for the acquisition, new construction, and rehabilitation of affordable housing. The typical financing package would consist of 10% owner equity, 40% conventional loan, and 50% HOME funds. The HOME funds are loaned at a 0% interest rate with variable repayment terms.

Community Housing Development Program (CHDP)

Deadline: Open

The objective of the Community Housing Development Program (CHDP) is to provide a financial resource to help address the housing needs of South Dakota communities. Based on the needs identified by market studies, SD Housing can provide financial assistance for the development of rental housing opportunities. Funds may be used for households at or below 120% of the Area Median Income. Public or private nonprofits or profit-oriented individuals(s), corporations, partnerships, limited partnerships, or organizations can apply for the CHDP funds. A portion of CHDP can be utilized for infrastructure financing for the development of homeownership and rental housing in partnership with local governments who have committed to the housing development by providing assistance, such as tax increment financing.

Housing Tax Credits (HTC)

Deadline: August

The Low Income Housing Tax Credit Program was designed as an incentive for construction and 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 in excess of $3.1 million to South Dakota. SD Housing, as the credit-issuing agency, is responsible for the administration of the tax credits.

Housing Opportunity Fund (HOF)

Deadline: August

The South Dakota Housing Opportunity Fund (HOF) is designed to promote economic development in South Dakota by expanding the supply of decent, safe, sanitary and affordable housing targeted to low- and moderate-income families and individuals in South Dakota. HOF funds may be used for new construction or the purchase and rehabilitation of rental or homeownership housing, housing preservation, including home repair grants and grants to make homes more accessible to individual with disabilities, homelessness prevention activities, and community land trusts. Any for-profit entity, nonprofit entity, tribal government, housing authority, political subdivision of this state or agency of such subdivision, or agency of this state is eligible to apply for funding.

Housing Trust Fund

Deadline: August

The primary purpose of the Housing Trust Fund (HTF) is to expand the supply of decent, safe, sanitary, and affordable housing with primary emphasis placed on affordable housing for extremely low-income South Dakotans (30% AMI or below). The HTF Program funds developers and/or owners for the acquisition, new construction, and rehabilitation of multifamily rental housing. Other eligible activities include relocation assistance and reasonable administration and planning costs. All rental housing developed with HTF funds has a minimum 30-year affordability period. The HTF funds may be provided as zero percent loans, deferred payment loans, or forgivable loans. The funds may be used with other funding sources such as HOME, HTC, and HOF.

Housing Infrastructure Finance Program

Deadline: 2023

The Housing Infrastructure Fund was created, to be administered by South Dakota Housing, for the purpose of making loans and grants for housing infrastructure projects. SD Housing was allocated $200 million to provide loans and grants for the development of housing infrastructure. $150 million from the SD general fund and $50 million from the American Rescue Plan Act (ARPA) of 2021. $100 million in general funds in the form of low-interest loans. $50 million in ARPA funds and $50 million in general funds in the form of grants.

USDA Rural Development

Single Family Guaranteed and Direct Loans (502 Program)

Deadline: Open all year

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify. Income cannot exceed 115% of median household income. The 502 Direct Loan Program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

Mutual Self Help Housing Technical Assistance Grants

Deadline: Open

Provides grants to qualified organizations to help them carry out local self-help housing construction projects. Grant recipients supervise groups of very-low- and low-income individuals and families as they construct their own homes in rural areas. The group members provide most of the construction labor on each other’s homes, with technical assistance from the organization overseeing the project. Eligible applicants include government non-profit organizations, federally-recognized tribes, and private non-profit organizations.

Rural Housing Site Loans

Deadline: Open

Rural Housing site loans provide funds to acquire and develop sites for low- or moderate-income families, with no restriction as to the method of construction. Low-income is defined as between 50-80% of the area median income (AMI); the upper limit for moderate income is 115% of the AMI.

Housing Preservation Grants

Deadline: June

Housing Preservation Grants provides grants to sponsoring organizations for the repair or rehabilitation of housing owned or occupied by low- and very-low-income rural citizens. USDA will award a total of $18,500,000 in Housing Preservation Grant Program funding for the repair and rehabilitation of rural housing units, which includes $2,500,000 for Presidentially Declared Disaster Areas ($50,000 maximum award). Most state and local governmental entities, nonprofit organizations, and federally recognized tribes may apply.

Federal Home Loan Bank of Des Moines

Deadline: June

Since the inception of the Affordable Housing Program in 1990, FHLB Des Moines has awarded $844.4 million to provide affordable housing opportunities to more than 124,000 families and individuals. The Competitive Affordable Housing Program encourages partnerships between our member financial institutions and local housing providers (sponsors) to secure funds for the purchase, construction or rehabilitation of affordable homeownership or rental housing units.