An Act to delineate uses for the South Dakota housing opportunity fund.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 11-13-2 be AMENDED:
11-13-2.
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 Dakotain
this state.
The authority may accept and
expend,
for the purposes of this chapter,
any funds
moneys
obtained from
appropriations or any other source. Any moneys
from the general
funds
fund
appropriated to
the housing opportunity program shall
must
be transferred
into the housing opportunity fund.
Disbursement of funds
moneys
to the
authority shall
must
be made after
moneys
in the South
Dakota housing opportunity funds
fund
have been
obligated by the oversight commission
created pursuant to 11-13-8
defined in 11-13-1,
except that moneys appropriated for housing infrastructure must be
disbursed to the authority upon passage.
Interest earned on money in the
fund shall
must
be deposited
into the fund.
Section 2. That 11-13-5 be AMENDED:
11-13-5.
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
for:
(1) Single
family and multi-family
affordable housing projects that
consist
consisting of
new construction,
or the purchase
of rental or home ownership housing,
substantial;
(2) Substantial
or moderate rehabilitation of rental or home ownership housing,
housing;
(3) Housing
preservation, including home repair grants and
grants;
(4) Grants
to make homes
houses more
accessible to individuals with disabilities,
homelessness;
(5) Homelessness
prevention
activities,
as well as;
(6) Providing financial assistance for a community land trust;
(7) Homebuyer assistance; and
(8) Housing infrastructure costs.
No more than ten percent of the
any
funds awarded
may be used for the
administrative
costs of
expenses incurred by
the South Dakota Housing Development Authority or any other
entity
that receives funding receiving
monies from the
fund.
Section 3. That 11-13-6 be AMENDED:
11-13-6.
Each year, money
from the
South Dakota
housing opportunity fund shall
must
be set aside as
follows:
(1) Thirty percent shall
must
be designated
for
use in
municipalities that have a population of fifty thousand or more; and
(2) Seventy percent shall
must
be designated
for the
other use
in areas of the
state,
other than those referenced in subdivision (1) of this section.
If the approved applications for
any area are
total
less than the
amount set aside, the
any
remaining
amount may be made available for use
by qualified
applications
applicants
from the other
areas.
The geographic distribution guideline takes precedence over the income targeting guideline during the evaluation of the applications.
The geographic distribution guideline is not applicable to moneys appropriated for housing infrastructure costs.
Section 4. That 11-13-7 be AMENDED:
11-13-7.
The South Dakota
housing opportunity fund shall
be targeted to serve lowtomoderate 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
must be utilized for the development of affordable housing. For purposes of this section, the term, affordable housing, means:
(1) Single family homes having an original selling price that is at or below the first-time homebuyer purchase price limit used by the South Dakota Housing Development Authority, as of the date the home is sold; or
(2) Multifamily housing units having a monthly rental rate that is at or below the calculated rent for this state's eighty percent of area median income, as used by the South Dakota Housing Development Authority.
Housing development guidelines are not applicable to moneys loaned for housing infrastructure costs.