Affordable Housing Bill to be brought before State Legislature on Wednesday
PIERRE, S.D. — A bill that could mean big things for affordable housing in the Rapid City area goes before the state legislature on Wednesday.
The bill looks to move five-million dollars from the general fund to support workforce housing, as well as declare an affordable housing emergency.
The money would go to the South Dakota Housing Development Authority to provide low-interest revolving loans for developers and property owners in the Rapid City and Sioux Falls areas.
Rapid City Mayor Steve Allender, who will testify in support of the bill, says it could lower the cost of development, which in turn would mean lower rent and home prices.
“The real cost of rent is a reflection of the amount of money it takes to build and maintain a structure such as an apartment complex. So when a developer is borrowing millions at four percent or four and half percent – when they could borrow it perhaps elsewhere at one percent – that makes a big difference in the cost of the overall product, and therefore in the cost of the monthly rent,” Allender said.
There is also a possible amendment to the bill that would increase the five-million dollars to 50-million, and spread the money beyond Rapid City and Sioux Falls.