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South Dakota Housing Programs Developers Should Know About


Developing housing sometimes requires a little extra assistance, financially speaking. Luckily, there are many options open to developers looking to construct housing statewide—particularly for low-income households. From emergency solutions grants to tax credits, there are programs you should consider.

Here are five South Dakota Housing Development Authority (SDHDA) programs of which any developer here in our state should be aware.

Emergency Solutions Grants

If you're a nonprofit or local government in search of assistance to stabilize or rapidly re-house households who are homeless or at risk of becoming homeless, the Emergency Solutions Grants program is a great place to start. This program, funded through a federal block grant, offers nonprofits and municipal governments funding opportunities for shelters and homelessness prevention, as well as re-housing and street outreach assistance.

Learn more here.

Housing Tax Credits

There are a variety of benefits for developers looking to construct low-income housing. SDHDA's Housing Tax Credit Program offers incentives for construction and rehab projects that meet certain standards. Equity raised through the sale of housing tax credits to investors can go toward qualified project costs. Developers can finance as much as 75 percent of the total project costs in exchange for units restricted to low-income households.

Learn more here.


A primary goal for SDHDA is to ensure that more safe, sanitary and affordable housing is available in our state. That's where the HOME program comes in—SDHDA collaborates with developers by offering a zero percent loan for the construction of affordable, single- and multifamily housing or the development of affordable lots and single-family homes. On new construction or rehabilitation projects, builders can typically receive about 50 percent of funding from the HOME program for their projects if they're restricted to low-income to very-low-income households.

Learn more here.


What is unique about the Community Housing Development program is that funds may be used for households as much as 120 percent of the area median income, allowing communities to address the need for housing for working residents beyond traditional program limits. Funds (minimum of $250,000) are issued at a low, fixed rate for the construction period, with the option to convert to permanent financing for as many as 30 years. This program can provide as much as 90 percent financing with 50 percent of the housing units restricted.

Learn more here.


Created to promote economic development in South Dakota by expanding affordable housing, the Housing Opportunity Fund provides financing for the new construction or the purchase and rehabilitation of rental or homeownership housing or housing preservation, including home repair grants and grants to make homes more accessible to individual with disabilities, homelessness-prevention activities and community land trusts. Housing is restricted to households at or less than 115 percent of the area median income.

Learn more here.

SDHDA offers more than a handful of opportunities for developers to get assistance—offering a lot of support for providing housing to the thousands of South Dakotans looking for a place to live. Whether it's bond financing, homeowner rehabilitation or workforce housing, there's likely a program to meet your development needs.

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