Tourism and State Development

South Dakota Housing Development Authority

FY1999 to FY2009 Budget Comparison

Funding Sources:

• SDHDA is totally self-supporting and has received no State tax dollars or appropriations

• Federal Funds Administration fees for federal housing programs

• Other Funds Commitment fees for first-time homebuyer loans Program application, loan and administration fees Governor’s House Program sales Investment income Other fees

Federal Funds$745,000

Other Funds$2,106,305

Federal Funds$1,665,346

Other Funds$8,390,067

FTE: 31.0

FTE: 64.0

South Dakota Housing Development Authority

• Created in 1973 as an independent instrumentality

• Investment of private capital for affordable housing

• Authorized to issue Bonds and Notes

• 7 Commissioners appointed by the Governor and confirmed by the Senate

SDHDA Board of Commissioners

• Chairman – Bob Sutton, Pierre

• Vice-Chair – Cindy Mydland, Brookings

• Treasurer – Jim Roby, Watertown

• Commissioner – Zack Word, Rapid City

• Commissioner – Curt Jones, Britton

• Commissioner – Linda Barker, Sioux Falls

• Commissioner – Lloyd Schipper, Pierre

SDHDA Departments and Staff

• Executive – 3 staff

• Finance and Administration – 9 staff

• Homeownership – 9 staff

• Rental Housing Development – 5 staff

• Rental Housing Management – 16 staff

• Research and Marketing – 1 staff

• Governor’s House – 21 staff

SDHDA Programs• First-time Homebuyer Program

Funded through the sale of tax-exempt bonds FY08, 2,744 loans, $295 million Have provided first-time homebuyer loans to

68,869 residents of South Dakota Over $4.1 Billion in loans purchased Loans originated by 53 Participating Lenders

with over 300 branch locations

SDHDA Programs• First-time Homebuyer Program

Standard & Poor’s Bond Rating AAA 1 of 5 natural AAA ratings among State

Housing Finance Agencies SDHDA has financed the highest amount of

loans per capita of all states SDHDA ranks 16th among states in total loans

while ranking 46th in population

SDHDA ProgramsStandard & Poor’s Bond Rating

April 8, 2008

“The ‘AAA’ rating of the parity resolution has been affirmed. The long-term component of the rating on the bonds reflects”

Extremely strong credit quality and strong track record of the mortgage loan collateral,

Sufficient loan loss protection at the ‘AAA’ rating level,

Fully funded reserves providing ample liquidity,

Extremely high-quality investments,

Cash flow strength, and

A strong asset-to-liability ration.”

SDHDA ProgramsMoody’s Bond Rating

July 18, 2007

“The Aa1 rating with a positive outlook reflects Moody’s expectation that the program will remain solid, if not grow, financially over the near-to-mid term as a result of SDHDA’s sound financial position, portfolio composition and performance, and capable management oversight.”

SDHDA Programs• Housing Tax Credit Program

IRS Housing Program started in 1987 Method of funding for low-and moderate-

income households Tax credits are determined by development

costs Credits are generally sold to syndicators and

proceeds are used as equity in project

SDHDA Programs• Housing Tax Credit Program

South Dakota receives over $2 million in credits annually

Since 1987, $30.7 million in credits allocated Credits have provided $470 million in capital

expenditures 7,245 housing units have been created or

rehabilitated

SDHDA Programs• HOME Investment Partnership Program

Funded through US Department of Housing and Urban Development (HUD)

Provides low interest rate loans for rental and homeownership opportunities

Provides forgivable loans and grants for homeowner rehab and security deposits

SDHDA Programs• HOME Investment Partnership Program

Annual SDHDA receives $3.5 million in funding

Program has loaned over $52.6 million Created $152.8 million in housing

development resulting in over 1,300 housing units

SDHDA ProgramsVilla Apartments – Canton, SD

SDHDA ProgramsVilla Apartments – Canton, SD

SDHDA ProgramsKnollwood Apartments – Rapid City, SD

SDHDA ProgramsKnollwood Apartments – Rapid City, SD

SDHDA ProgramsSunrise III Apartments – Mission, SD

SDHDA ProgramsHills Apartments – Deadwood, SD

SDHDA ProgramsDeer Hollow – Hartford, SD

SDHDA ProgramsRedwood Court – Brandon, SD

SDHDA ProgramsWilliamsburg II – Sioux Falls, SD

South Dakota Housing Development Authority

Governor’s House Program

SDHDA Programs• Governor’s House Program

Program started in 1996 To Date:

- 1,708 Homes Sold- 1,674 Homes Constructed- 1,622 Homes Delivered

Sales Price $33,000 Buyers must meet Income and Net Worth

Program Requirements

South Dakota Housing Development Authority

• Professional Organizations and Boards National Council State Housing Agencies National Affordable Housing Management Association State Interagency Council on Homelessness South Dakota Home Builders Association South Dakota Realtors Association South Dakota Bankers Association

2010 InitiativeGoal Four – Brand and Develop South Dakota ’s Quality of Life as the Best in America by 2010.

4D. Stimulate affordable homeownership, rental housing and day care facilities in South Dakota communities that evidence a need.

• Collaborate with our partners to secure and invest $2 billion in private and public capital to provide for affordable owner occupied housing, rental housing and daycare facilities.

• Expand existing partnerships, programs and services to provide homeownership and rental development opportunities and federal subsidies to the state's low-income working residents, the elderly and persons with disabilities.

2010 InitiativeGoal Four – Brand and Develop South Dakota ’s Quality of Life as the Best in America by 2010.

4D. Stimulate affordable homeownership, rental housing and day care facilities in South Dakota communities that evidence a need.

• Create service-enriched, permanent housing opportunities for the homeless population to reduce chronic homelessness.

• Support investment of private capital to provide leverage for tribal initiatives that increase homeownership on the reservations.