In 1965, the Federal Housing Administration (FHA) and the Public Housing Administration merged to create the Department of Housing and Urban Development (HUD). HUD administers programs that increase homeownership, provide aid for housing for lower-income persons, support community development and increase access to housing free from discrimination. To support these goals, HUD provides single-family and multi-family mortgage insurance for low and moderate income households, block grants for housing, revitalization and rehabilitation efforts, rental housing subsidies for low income households, and a variety of other grants and loans to stem the tide of homelessness, help with disaster relief, create healthy homes, eliminate drugs, and to promote safe neighborhoods. HUD works in partnership with nonprofits, the private sector, city and state entities, and other Federal agencies. Since 1965, the total combined direct investment, rental subsidies to properties and tenants, and other grants and loans in South Dakota is estimated at more than $10 billion since 1965. The breakdown by broad program area in 2005 dollars is given below:

HUD's infrastructure and housing investments, housing support and commitment to access housing free from discrimination have contributed positively to the state over the past 40 years. Since 1965, South Dakota's employment grew by an average of more than 6,000 jobs a year, the homeownership rate increased, many low and moderate income areas have been revitalized and families in need of housing assistance found places to live.