SOUTH DAKOTA HOUSING OPPORTUNITY FUND
South Dakota housing opportunity fund created.
Duties of administrative agency.
Eligibility for funding.
Eligible fund activities.
Geographic distribution guideline.
Income targeting guideline.
Applications for award.
Annual report by oversight commission.
Terms used in this chapter mean:
(1) "Administering agency," the South Dakota Housing Development Authority shall act as the administrative agency for the South Dakota housing opportunity fund;
(2) "Affordable housing," housing is affordable if the total housing costs, which includes rent, utilities, mortgage, and related expenses, represents no more than thirty percent of gross household income;
(3) "Commissioner," a member appointed to the oversight commission;
(4) "Fund," the South Dakota housing opportunity fund;
(5) "Oversight commission," the commissioners that govern the South Dakota Housing Development Authority;
(6) "Single family home," any home built to the International Residential Code (IRC) or the United States Department of Housing and Urban Development (HUD) Building Code as of January 1, 2013, and located on a suitable site that is zoned properly for an IRC or HUD single family residence.
Source: SL 2013, ch 7, § 14, eff. Mar. 20, 2013.
11-13-2. South Dakota housing opportunity fund created.
There is hereby created the South Dakota housing opportunity fund to be administered by the South Dakota Housing Development Authority for the purpose of preserving and expanding sustainable, affordable, and safe housing that is targeted to low and moderate income families and individuals in South Dakota. The authority may accept and expend for the purposes of this chapter any funds obtained from appropriations or any other source. Any general funds appropriated to the housing opportunity program shall be transferred into the housing opportunity fund. Disbursement of funds to the authority shall be made after South Dakota housing opportunity funds have been obligated by the oversight commission created pursuant to § 11-13-8. Interest earned on money in the fund shall be deposited into the fund.
Source: SL 2013, ch 7, § 13, eff. Mar. 20, 2013; SL 2018, ch 10, § 12.
11-13-3. Duties of administrative agency.
The administrative agency shall:
(1) Develop program guidelines;
(2) Market the fund to eligible applicants;
(3) Receive, review, and evaluate proposals;
(4) Submit funding proposal recommendations to the oversight commission;
(5) Administer annual monitoring and reporting on the fund;
(6) Create operating rules and guidelines for the oversight commission; and
(7) Perform all other activities necessary to support the administration of the fund.
Source: SL 2013, ch 7, § 15, eff. Mar. 20, 2013.
11-13-4. Eligibility for funding.
Any for-profit entity, nonprofit entity, tribal government, housing authority, a political subdivision of this state or its agencies, or any agency of this state is eligible to apply for funding from the fund. No individual may apply for funding directly from the fund.
Source: SL 2013, ch 7, § 16, eff. Mar. 20, 2013.
11-13-5. Eligible fund activities.
The South Dakota housing opportunity fund may be used to provide a grant, loan, loan guarantee, loan subsidy and other financial assistance to an eligible applicant. Money from the fund may be used to build, buy, and or rehabilitate affordable housing for rent or home ownership, including single family and multifamily housing. The eligible fund activities include affordable housing projects that consist of new construction or the purchase of rental or home ownership housing, substantial or moderate rehabilitation of rental or home ownership housing, housing preservation, including home repair grants and grants to make homes more accessible to individuals with disabilities, homelessness prevention activities, as well as a community land trust. No more than ten percent of the funds awarded may be used for the administrative costs of the South Dakota Housing Development Authority or any entity that receives funding from the fund.
Source: SL 2013, ch 7, § 17, eff. Mar. 20, 2013; SL 2016, ch 4, § 2.
11-13-6. Geographic distribution guideline.
Each year, money from South Dakota housing opportunity fund shall be set aside as follows:
(1) Thirty percent shall be designated in municipalities that have a population of fifty thousand or more; and
(2) Seventy percent shall be designated for the other areas of the state.
If the approved applications for any area are less than the amount set aside, the remaining amount may be made available for qualified applications from the other areas. The geographic distribution guideline takes precedence over income targeting guideline during the evaluation of the applications.
Source: SL 2013, ch 7, § 18, eff. Mar. 20, 2013.
11-13-7. Income targeting guideline.
The South Dakota housing opportunity fund shall be targeted to serve low to moderate income households with a maximum income at or below one hundred fifteen percent of the area median income based on United States Department of Housing and Urban Development (HUD) criteria.
Source: SL 2013, ch 7, § 19, eff. Mar. 20, 2013.
11-13-8. Applications for award.
Awards from the fund shall be made through an application process. Each application shall be evaluated and scored based on criteria created by the administering agency and the oversight commission. Each applicant that is awarded money from the fund is encouraged to leverage the money for any project or program with other public and private dollars. Any program income or loan payments received shall be deposited into the account held by the South Dakota Housing Authority.
Source: SL 2013, ch 7, § 20, eff. Mar. 20, 2013; SL 2016, ch 4, § 3; SL 2018, ch 10, § 13.
11-13-9. Annual report by oversight commission.
The oversight commission shall submit to the Governor and the Legislature an annual report which includes the activity and use of funds for the South Dakota housing opportunity fund.
Source: SL 2013, ch 7, § 21, eff. Mar. 20, 2013.