Community Development

Housing in rural areas is difficult to build and develop at an affordable rate. Material prices are similar in small communities as they are large ones, but the wages are lower and growth is slower. A problem facing small towns in South Dakota is losing young people and families to urban areas where jobs and housing are plentiful; as a result, small town schools are either consolidating or closing. Affordable housing in rural areas is a critical component in rejuvenating economic growth and keeping families in small towns.

SEHP is developing a program to offer to neighboring communities in the creation of affordable housing. The program will have five facets of services to offer to communities based on their originally assessed need.

1. Creating Partnerships:

The SEHP has built many partnerships in the Sioux Falls community that have been vital to the development of affordable housing in Sioux Falls. These partnerships have included local and federal grant dollars, zero interest loan pools, reduced fees from Realtors and lenders and discounted materials. All these partners combined have created quality, affordable single family homes. SEHP can assist communities in creating their own partnerships that can similarly reduce the price of homes being constructed.

2. Financing:

The SEHP has creatively financed each affordable housing development, utilizing the partnerships of local lenders. Lenders contribute money into a zero interest loan pool that the Partnership accesses to pay for the construction and development of new housing. The Partnership has also utilized local and federal grants for land development and received financing with governmental entities such as HUD, Fannie Mae and the City of Sioux Falls. The Partnership plans to work with each community to find a financing package that will work for their project.

3. Affordable Housing Developments:

Beginning in 1999, the SEHP developed an affordable housing project in Sioux Falls in Lacey Park. The displaced homes were moved onto new foundations, rehabbed, and sold to low income people who would be unable to afford a traditional home. Since then, the SEHP has completed a development of 49 new construction homes and is now embarking on a new development that will be of mixed housing - some new construction and some rehabbed homes. The SEHP has a decade of experience in developing land and creating neighborhoods and will offer consulting advice in the development of new neighborhoods in other communities. The SEHP has a full-time Construction Manager on staff who oversees the day-to-day operations of construction and development for the SEHP.

4. Revitalization:

In Sioux Falls, the Whittier Neighborhood was the first neighborhood that SEHP became part of the revitalization efforts. Through the efforts of the SEHP and the City of Sioux Falls, a total of nine houses have been rehabbed and sold below market value to the first time home buyers. The benefits of this rehabbing not only resulted in new home ownership; the neighborhood itself has visually improved. The rehabbing in selected neighborhoods resulted in a HUD "Best Practice Award". The SEHP is also experienced in purchasing, rehabbing and reselling to low- to moderate- income residents individually since the SEHP became HUD preferred non-profit buyer of REO properties. SEHP has the capability of buying homes in the state that come available, or would offer consulting advice on neighborhood revitalization.

5. Homebuyer Education:

SEHP will offer homebuyer education to residents of neighboring communities. Julie Clark, Education Director for the SEHP, has educated thousands of people on homebuyer education and money management classes through one on one counseling sessions or group seminars. These classes have proven to create more responsible homeowners.

These are some of the services the Partnership is making available to neighboring communities. For further information, contact Christina Thronson at cthronson@siouxfalls.com or call (605) 339.0942.