2000 Best Practice Awards

2000-652 Donnie Wahl Apartments

Donnie Wahl Apartments provide 20 units of independent living and case management services to low-income, disabled, non-elderly adults. The apartments reduce homelessness among persons with severe mental and physical disabilities while providing case management services in a strong community environment. The apartments encourage independent living due to their proximity to medical services, social service agencies and other amenities More intense supportive services are available to tenants with incomes below 50% of median

2000-2435 Western Resources for dis-ABLED Independence (WRDI)

WRDI is a private nonprofit organization which has existed for 9 years. WRDI started in 1985 as a satellite facility of the Prairie Freedom Center located in Sioux Falls, SD. In September 1989, WRDI had a mission of assisting people with disabilities to live independently in their home and community. This is accomplished through an array of services as advocacy, independent living skills training, peer support, home modifications and adaptive devices.

2000-835 Timothy’s House of Hope and Hope Village

Timothy’s House of Hope and Hope Village is a group home for recovering alcoholics and drug abusers that encourages rehabilitation and development of daily living skills. The modest room fee includes a furnished room, utility payments and use of shared kitchen and living facilities. Residents are referred to local drug and alcohol abuse centers outside of the program in addition to the group counseling they receive on-site. The environment is both supportive and instructional; at the men’s home all assist in daily chores, and fathers are encouraged to pay child support. Facilities are located within walking distance to grocery stores and bus lines. Because the transition to sobriety can take months, Timothy’s is a full-time facility. Few participants have disabilities, 75% are veterans, 40% have been through previous treatment, and some are recovering from divorce, surgery, or job loss.

2000-3010 RCCDC Affordable Housing

In 1995 six lenders and other community partners in Rapid City joined together to form the Rapid City Community Development Corporation (RCCDC). The purpose of the RCCDC was to construct affordable housing for first time homebuyers. The six lenders donated $200,000 in capital to provide zero interest construction loans to qualified buyers. The Rapid City Community Development Office provides grants to non profits for the purpose of acquiring vacant land on which to develop single family homes. Through December 31, 1999, the City of Rapid City has provided in excess of $190,000 toward land acquisition for the development of affordable housing for homeownership. Between the RCCDC and the Rapid City Housing Coalition, they have purchased twelve vacant lots for development. The Rapid City Housing Coalition provided homebuyer education and helped locate low income purchasers for the properties. The RCCDC uses grant funds, which have continued to be provided through Rapid City, to purchase lots. All potential homebuyers must be below 80% of the median income for the area. The RCCDC contracts to construct the homes using a zero interest construction loan. The buyers must be qualified for mortgage financing and can access other funds that may be available to assist in the purchase. Additional funds can consist of a Mortgage Assistance Program loan from SDHDA for part of the downpayment; first time homebuyer interest rate, and FHA or VA mortgage insurance. Potential purchasers pay for only the cost of the house. RCCDC takes back a second mortgage as a deed restriction for the cost of the lot. If the buyer sells the home within the first 5 years, they must pay back to the RCCDC the full cost of the lot. During the sixth through the tenth year, the cost of the lot payback is reduced 20% each year. After the tenth year, the full cost of the lot is forgiven.

2000-179 EMAP (Employer Mortgage Assistance Program)

The Sioux Empire Housing Partnership (SEHP) designed a program to provide low interest second mortgages for a portion of the down payment and closing costs to employees of participating employers who receive a South Dakota Housing Development Authority (SDHDA) first-time homebuyer program loan. SEHP then partnered with SDHDA to market and deliver EMAP. Funding for the mortgages is provided by participating employers as an employee benefit and retention tool. This employer funding is provided to the employee at an interest rate of 2% and can be combined with SDHDA's existing Mortgage Assistance Program (MAP). When the two funding sources are combined, the result is a second mortgage for down payment and closing costs with a blended interest rate ranging between 2% and 5.5%, depending on the percentage of funds received from each source. Sioux Empire Housing Partnership provides marketing and training to prospective employers, and homebuyer education. SDHDA administers the loans through approved Servicers, and provides repayment to the employers when payments are received. Each individual employer establishes, within master program requirements, the criteria for their employees to qualify. Monthly payments for the EMAP Loans are included in the first mortgage payment, which allows the employees to make only one monthly mortgage payment versus two. To encourage employee retention, a bump-rate feature is included which bumps the interest rate to prime +5% if the employee ceases to be employed with the employer.

2000-608 Green Hills I Development

The South Dakota Housing Development Authority (SDHDA), the Sioux Empire Housing Partnership, Costello Companies, Stencil Construction and Citibank partnered to obtain low interest financing to acquire and develop the land, and construct and sell affordable single-family homes and home lots in Sioux Falls, South Dakota. Security Mortgage Corporation (SMC) provides ongoing mortgage loan servicing and guaranty. Through cooperation and approval by the city of Sioux Falls, SDHDA sold tax-exempt bonds to finance the project. No federal, state, or local subsidies were used with this project. Forty-eight homes were constructed in the Green Hills I Development, using six (6) different floor plans. The homes sold for $81,500, with a down payment as low as $500 and 100% financing to homebuyers meeting the income limits of SDHDA's first-time homebuyer program. Affordable lots, interspersed within the development, were sold for $14,500. The appraised value of the completed homes ranged from $89,000 to $92,000. Financing for the entire project was provided through SDHDA's issuance of $4,450,000 in tax-exempt bonds. Citibank provided the Letter of Credit to enhance the sale of the bonds. SDHDA acted as owner/developer, and qualified homebuyers received low interest financing through SDHDA's first-time homebuyer program. Costello Companies provided construction management, marketing, and was the listing agent. Through Costello Companies' Internet web page, potential homebuyers could view the development's lot locations and the six floor plans available, and could access a Purchase Agreement. The homes were built by Stencil Construction. Because of the bulk sales and common construction/closing dates, the appraiser and title company provided reduced costs to the homebuyers. Qualified homebuyers were required to obtain homebuyer education. Those at or below 80% of HUD's area median income limits were required to provide a down payment of $500 and those above 80% were required to provide a down payment of 50% of liquid assets over $1,000. Additionally, the homebuyers met a qualifying housing ratio of 33% and a total obligation ratio of 38%, and could finance up to $2,300 of their closing costs for a maximum loan amount of $83,800. If the homebuyer sells the home within the first ten years, part of the original equity is recaptured according to a predetermined schedule. The mortgage loans do not carry mortgage insurance; instead, they are backed by the five year, Letter of Credit from a AA-rated bank. The applicable mortgage loans are serviced by a single Servicer, who also provides a Take-Out Guaranty beginning in year five for the remaining term of the loans.

2000-2996 PCHRC Energy Performance Contract

The Pennington County Housing and Redevelopment Commission (PCHRC), which is the housing authority for the county, has entered into an energy performance contract to upgrade its water and electric equipment and generate energy savings for their organization. Under the contract, PCHRC installed new lighting, over 400 new low-flow toilets and shower flow restrictors, and new boilers for the high rise buildings. They also installed individual electric meters for each unit. The cost of the improvements was financed through a long term equipment lease with Norwest Bank. The lease payments are being paid with the cost savings achieved. The energy contractor also holds an insurance policy to guaranty that the savings are sufficient to cover the lease payments. Under HUD regulations, PCHRC keeps any utility savings in excess of what is needed to make the lease payments.

2000-2974 Rapid City Police Department Contract

The Pennington County Housing and Redevelopment Commission (PCHRC), which is the housing authority for the county, has entered into a contract with the Rapid City Police Department (RCPD) for extra patrols and other crime prevention measures in their public housing projects. Under this program, they have utilized the concept of community policing in each of the housing areas. They also do a computerized background check on all applicants and participants in their housing programs. They submit a disk with the names and Social Security numbers of all new applicants, and all participants who are due for recertification, and receive back a printout of any arrest record for those listed on the disk. They also receive a copy of the daily police log detailing all Police Department calls for service, and a quarterly report on all police responses and activity in the Public Housing developments.

2000-2988 South Dakota Bad Debts Database

The Pennington County Housing and Redevelopment Commission (PCHRC), which is the housing authority for the county, has set up and maintains a database of clients who owe money to any South Dakota public housing authority (PHA). The database is available to all South Dakota PHAs. They can add names of clients who leave owing them money and check applicants to their programs. The database helps PHAs meet the HUD requirement that assistance not be provided to individuals who owe money to another PHA, and results in collection of bad debts. Housing authorities need only to call into the server, enter an applicant’s Social Security number and listen to hear if the applicant has bad debts or not. Housing authorities may submit new information on collections owed at any time to the PCHRC, which maintains the system.

2000-2780 Heartland House

Heartland House is a 15-unit transitional housing program for homeless families with children. It is located in Sioux Falls, South Dakota. Sioux Falls, with a population estimated at 115,000 - 120,000, is the largest city in South Dakota. Inter-Lakes Community Action, Inc. (ICAP), the Community Action Agency (CAA) serving the city, sponsors the program. Because the core of CAA-sponsored programs is assistance to persons in their movement toward self-sufficiency , the services available through Heartland House have been carefully structured to fulfill that core purpose. Participants in the program are provided with low-cost housing combined with intensive family case management and a broad spectrum of supportive services. The participants create a self-sufficiency plan upon their entry into the program, and are given a strict set of guidelines and procedures, which are not negotiable. At least one adult of the household has a two-week period upon entry to either find a job or be enrolled in a full-time educational program. Each participating family is required to attend 24 two-hour classes (held every two weeks) on basic skills, parenting skills, living skills and other fundamental topics. These examples are demonstrative of the conditions that the participants must meet. Even more significant than the program requirements is the accountability to which the participants are held. This stringent, structured process has proven itself successful, in that in many cases the participants have lacked that structure and accountability in their lives.

Content Archived: April 20, 2011