When a community has a need for affordable housing development, they need not look any further than South Dakota’s HOME Investment Partnership Program, known simply as “HOME.”
Funded through formula grants to states and municipalities, administering agencies then partner with a nonprofit or for profit organization to finance the development of affordable housing in a community.
1. Why does HOME exist?
The U.S. Department of Housing and Urban Development (HUD) implemented HOME to support community development. The program focuses on growing partnerships between state and local governments and private entities to help develop affordable housing.
2. How can funds be used?
HOME funds can be used to provide housing-development assistance in several ways. SDHDA utilizes the HOME funds to construct new or rehabilitate existing housing for either rental or homeownership. SDHDA also provides HOME funds for use as security deposit assistance for rental housing or downpayment assistance for purchase of a Governor’s House.
Provided as a zero percent (0%) loan, SDHDA HOME funds can be used as construction and permanent financing. HOME funds can also be combined with other funding sources to develop mixed income housing where a portion of the housing units are restricted to very-low and low income households and a portion of the units are considered market rate, with no income restrictions.
3. Who is eligible?
Nonprofit and for profit organizations are eligible for HOME assistance. If you are interested in taking part in the HOME program, you should contact South Dakota Housing Development Authority.
States are eligible to receive HOME funds and receive either $3 million or a formula allocation, whichever is greater. South Dakota receives the minimum allocation amount. Local jurisdictions can also receive an allocation under the formula grant provided it's eligible for at least $500,000. Sioux Falls receives funding under this allocation.
Check here for more information on eligibility and the HOME program. Call or e-mail Chas Olson, Housing Development Officer, with your HOME program questions.
Phone: (605) 773-4132