The state commission has awarded nearly all of the state’s Housing Infrastructure Loan Program grants, but much of the program’s loan funds are still available.
The program combines state and federal funding used to relieve the burden of high inflation on home builders and address workers’ housing needs. Lawmakers created the program in 2023 after legal disputes stalled funding the previous year. This will cover up to one-third of the development’s roads, sewers, street lights, and other costs associated with building new neighborhoods.
The funding pool includes $50 million in federal coronavirus relief funding grants, $50 million in state grants and $100 million in state loan funds.
Just over $1 million remains in grants earmarked for the Sioux Falls and Rapid City projects, but that comes from interest income rather than originally allocated funds, said Chas Olson, executive director of the state Housing Development Authority. Ta. Two applications for projects in those cities are on the waiting list for the remaining funds, one of which will be considered at the next board meeting.
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The authority’s board of directors awarded other returned grants and remaining grants to three projects at its Oct. 17 meeting.
“We have several projects on our waiting list in case additional funding becomes available,” Rental Housing Development Director Amy Eldridge told board members.
The Board approved additional grant funding for the Alpha Omega Subdivision of Box Elder, with over $3 million in grant funding approved in September 2023. The project was awarded an additional $520,873 in grant funding because the cost of the construction project increased by $3.5 million.
An additional $107,340 grant was awarded to the housing project planned by the Pierre Economic Development Corporation after the original project increased costs by $322,000.
The remainder of the grant was awarded to a new project called RiverPark in Brandon, which will develop infrastructure for 174 apartment complexes and 265 single-family homes. The board approved a $3 million grant and $3.6 million loan for the project.
If other grants from other projects are returned, Riverpark could receive that money for its $19 million project.
That’s because the agency must spend all federal funds allocated from the American Rescue Plan Act by the end of 2026 or return them to the federal government, Eldridge told board members.
The board also approved $96,613 in loan funds for Huron Cul-de-Sac and $269,667 in grant funds in November 2023. Since then, project costs have increased by $289,836.
Approximately $87 million in loan funds are still available, with approximately $29.3 million allocated to Sioux Falls and Rapid City, and the remaining balance to other areas of the state. The board has awarded approximately $18 million in loans to 12 projects to date. The loan funds have been growing and earning interest since their inception.
With 70 program-funded infrastructure projects underway and an estimated 12,000 new homes built across the state, developers and contractors are currently less interested in loan funds, Olson said. He said there was no. Bank interest rates are also expected to be lowered.
“As a result, contractors are full and developers with no projects in progress may be waiting to see how quickly these new units are absorbed,” Olson said. .
Projects that have returned funds to the Board
The seven projects that received grant and loan funding returned funds to the board, totaling $1.65 million in grants and $2.17 million in loans. All returned grants were reallocated at the October 17th meeting.
Project stalls and doesn’t progress:
City Springs – Vanokker Heights (Sturgis): $2,140,000 in loan funds returned Stanley Township (Fort Pierre): $705,000 in ARPA grants returned Rustler Lott (Miller): $178,790 General Grant Returned Stardust District (Mitchell): $567,568 ARPA Grant Returned.
Projects that were within budget:
Freedom Estates (Box Elder): General grant of $184,799 returned Kangas West Addition (Lake Norden): General grant of $14,513 returned Liberty Park Phase 4 (Box Elder): $29,124 of loan funds returned
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