Sioux Falls details impacts on affordable housing, plans for 2025
The city of Sioux Falls helped more than 2,000 people through affordable housing programs last year and has plans to increase the budget in 2025.
“Our main goal is to get people into housing they can afford and keep them there,” said Logan Penfield, the city’s housing development manager.
“These programs and partnerships primarily support homeowners and renters who are at or below 80 percent of the area median income, with added investments in 2024 and 2025 at 30 percent and below as they are among the highest need for housing support in the community. When working with individuals and community partners, we are always evaluating the need and affordability, but we also consider how the housing assistance can positively impact the entire neighborhood.”
In 2024, the housing division invested $8.6 million into the community, impacting 2,086 people. An additional $4 million was encumbered for programs in 2024 but will be spent this year. The budget for 2025 is $12.5 million, which includes a $1 million increase.
Last year, the housing division supported 213 completed projects, representing 1,089 households served that were at or below 50 percent of the area median income.
Projects included Forty One Flats, a 41-unit tax credit community in the area of 41st Street and Ellis Road that opened in June and serves residents at or below 60 percent of area median income.
Through a partnership with Habitat for Humanity of Greater Sioux Falls, eight single-family homes were rehabbed, serving on average a five-person household in each.
Work with Inter-Lakes Community Action Partnership also helped convert the former Children’s Inn building in northwest Sioux Falls into a shelter for 10 homeless families managed by the Bishop Dudley Hospitality House.
Other funding supported the ICAP work at the Heartland House, which helps with rapid rehousing, and the Bright Futures program, which provides tenant-based rental assistance.
“You’re really talking about deep income targeting, and those programs primarily support families with children,” Penfield said.
For Sioux Falls residents, the city’s housing division offers three programs that provide financial assistance directly to low- and moderate-income households to support repairs and replacements for single-family, rental and mobile home properties. Program funding can help pay for repairs or replacements like plumbing, heating systems, electrical work, roofs, windows and screens, insulation and winterization, handicap accessibility and necessary painting.
Single-Family Rehabilitation Program:
- Provides financial assistance for homeowners to repair or replace plumbing, heating systems, electrical work, worn or leaking roofs, windows and screens, insulation and winterization, handicap accessibility, necessary painting and sidewalks.
- Financial assistance is provided through a deferred, zero percent interest loan that is due upon the home’s sale or if the loan recipient moves out of the house.
- To qualify for the program, household income must not exceed 80 percent of the median family income, which is $84,500 for a family of four or $59,150 for one person.
Rental Rehabilitation Program:
- Provides a low-interest loan to owners of a registered rental property for materials used in exterior and interior rehabilitation.
- Eligible exterior work includes roofing, doors, windows, porches, steps/stairs, gutters and downspouts, siding, paint, foundation repair and driveway approaches. Eligible interior work includes paint, wall repair, floor coverings, cabinetry and insulation. Work requiring licensed contractors, including plumbing, mechanical and electrical, also qualifies.
- Rental property owners can apply for up to an eight-year, low-interest loan. For all loans, the interest rate is zero for the first six months. For month seven and beyond, the interest rate is based on rent: 3 percent interest rate for rents restricted to 65 percent rent limit; 1.5 percent for 50 percent rent limit; and zero percent for fair market rent.
Mobile Home Repair Program:
- Provides financial assistance to residents who own a mobile home within Sioux Falls city limits.
- Offers up to $5,000 for any one mobile home during its lifetime for repairs that are emergency in nature, including a faulty heating system or electrical or plumbing issues.
- Applicants are income restricted to 80 percent of the area median income, which is $84,500 household income for a family of four or $59,150 for one person.
- The loan is forgiven after the applicant occupies the mobile home for one year after project completion.
Residents have an opportunity to view and comment on the 2024 housing report by visiting SiouxFalls.gov/Housing or attending a community meeting at 4 p.m. March 20 at City Center, 231 N. Dakota Ave.
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