HUD Heartland News

Volume 9, Issue 3
May 2015

View the published version of the Newsletter with photos

In this Issue:

Calendar of Events:

May 25, 2015
Office Closed for Holiday

June 4, 2015
Smoke-Free Housing Webinar

June 9, 2015
State Homeless Meeting
Chamberlain

June 10-12, 2015
Environmental Training

June 10-12, 2015
Assisted Housing Manager Occupancy Training
Sioux Falls

June 24, 2015
Smoke-Free Workshop
Sioux Falls

HUD Celebrates 50 Years

In September we will reflect on all of the significant opportunities HUD has provided as we celebrate HUD's 50th anniversary. We would be remiss to not recognize the impact HUD has made in South Dakota. Over the past 12 years, HUD has provided $1.8 billion in direct funding for rental assistance, block grants, and competitive grants. Since 1934, over 115,000 FHA loans have been insured for a total of $6.8 billion.

HUD has had a presence in South Dakota since the very beginning. Take a look at the history of the South Dakota HUD Office.

  • 1934 FHA was created and an office opened at the City Hall Building in Sioux Falls.
  • 1947 The office moved to the Minnehaha Building at 9th and Phillips Ave.
  • 1952 The office relocated to the Home Federal Building; and in the early 1960's relocated to the Federal Building.
  • 1965 HUD was created as a Cabinet-level agency. Sioux Falls staff of 30 handled FHA mortgage insurance and HUD-insured multifamily mortgage originations.
  • 1972 Staff assisted with recovery and rebuilding in Rapid City after a devastating flash flood killed 238 people and caused $165 million in damages.
  • 1977 The office became a Valuation/Endorsement office with 12 staff.
  • 1984 The office relocated to the "300" Building on N. Dakota Ave; and in 1993
  • relocated to the Oxbow Office Center on W. 49th St.
  • 1999 The Office of Inspector General opened a small office in Rapid City with 2 investigative agents. This office closed in 2002.
  • 2007 The office relocated to the Donegal Center on W. 57th St.

Pine Ridge Designated a Promise Zone

On April 28, 2015, the Pine Ridge Indian Reservation was announced as a Promise Zone which will allow the community to work with government agencies to improve the quality of life on the reservation. Promise Zones receive priority access to federal investments that further their strategic plans, as well as access to AmeriCorps VISTA members to recruit and manage volunteers to strengthen the capacity of Promise Zone initiatives.

The Pine Ridge Promise Zone is being led by the Thunder Valley Community DevelopmenCorporation (www.thundervalley.org/) which, in partnership with key local and regional organizations, will take a holistic approach to addressing the area's most challenging issues. The Pine Ridge Promise Zone Plan builds on the regional planning effort initially undertaken via a Federal planning grant from HUD in 2010.

Your Door to FHA Homeownership
Phone toll-free (800) CALLFHA or
(800) 225-5342, M-F, 7am-7pm CT
Email: answers@hud.gov
Search online: www.hud.gov/answers

Increase in Native American Homeownership

Homeownership in Indian country which includes South Dakota, North Dakota, Colorado, Montana, Utah, Wyoming has risen more than 220% from 2005-2014, according to HUD's recent press release.

Since its inception in 1995, HUD's Section 184 Indian Home Loan Guarantee Program has guaranteed 505 loans in South Dakota for a total of $49.1 million.

As of 2014, the Section 184 Program has guaranteed over 24,000 loans for a total of nearly $4 billion in guaranteed funds. The program has increased as a result of an expanding network of private sector and tribal partners and a more localized grassroots marketing approach.

Single Family Updates

Housing Handbook Extension Date:

FHA recently announced an extension of the implementation date for the policies in its new Single Family Housing Policy Handbook 4000.1 to September 14, 2015 to give lenders more time to operationalize. A series of pre-recorded training webinars which cover most of the updates are available.

Interpretive Rule for Lenders:

The Dodd-Frank Act requires mortgage lenders to provide applicants with a list of approved housing counselors for independent and informed advice on deciding what loan is best for them. The Consumer Financial Protection Bureau issued a final interpretive rule (www.consumerfinance.gov/newsroom/cfpb-issues-guidance-on-housing-counselor-requirement/), effective on April 21, 2015 on the procedures lenders should follow.

Recent Funding Announcements

  • HUD's award of $2.7 million for the Section 811 program to the South Dakota Housing Development Authority (SDHDA) (www.sdhda.org/) will provide 100 units of permanent homes and services to extremely low-income persons with disabilities.
  • The announcement of additional HUD-VASH funding of $76,156 will assist 14 homeless veterans, in addition to the 100 HUD-VASH vouchers already assisting homeless veterans in Sioux Falls. HUD-VASH is a partnership between HUD and the Veterans Administration (VA) to provide rental assistance from HUD and case management and clinical services from the VA.
  • HUD's award of $167,335 in Housing Counseling grants to SDHDA will assist housing counseling service providers. To date, SDHDA has disbursed more than $2.2 million to providers, benefiting over 43,295 South Dakotans with housing counseling and education services.
  • HUD announced more than $40 million to South Dakota Native American tribes through the Indian Housing Block Grant (IHBG). IHBG's are allocated each year to eligible Indian tribes or their tribally designated housing entity for various affordable housing activities.

South Dakota Single Family FHA Information

FY2015 Statistics                        Jan               Feb              Mar

Loans Insured                            123                92              203

First-Time Homebuyers               64                 50                63

Minority Homebuyers                   3                    2                  7

Default Rate                        2.59%            2.45%           2.20%

Foreclosure Rate                0.44%            0.46%            0.48%

 

REO Properties

Acquired                                    14                 22                18 

Sold                                          13                 15                  8

Owned                                      42                 49                59      

Environmental Review Training

Free Environmental Review Training for state, local, and tribal governments, non-profit organizations, and consultants will be held live via video-conferencing in the Sioux Falls HUD office on June 10-12, 2015. Participants have until May 22, 2015 to register.

What is Section 3?

Section 3 of the Housing and Urban Development Act of 1968 ensures that HUD-funded jobs, training, and contracts are provided to local low-income residents, particularly those that reside in public housing and businesses that substantially employ them.

Section 3 businesses are

a. 51% or more owned by residents of public housing or persons whose income does not exceed HUD's local area low income (www.huduser.org/portal/datasets/il/il15/FY2015_IL_sd.pdf) limits; or

b. Comprised of 30% or more full-time employees who are Section 3 residents; or

c. Can provide evidence of a firm commitment to award 25% or more of sub-contracts to businesses that meet a. or b.

The Section 3 Business Registry is a national registry of businesses that have self-certified to HUD that they meet one of the definitions of a Section 3 business. The Registry facilitates the notification about HUD-funded contracts to eligible firms. Learn more and register online.

Water Wednesdays Webinar Series

As part of the Environmental Protection Agency's (EPA) WaterSense program, HUD and EPA are launching a series of webcasts on water conservation for their partners and stakeholders. The "Water Wednesdays" webinar series will help HUD project officers, grantees, and owners/managers of assisted housing to incorporate water efficiency into their programs and projects.

The first webinar "Communicating the Need for Water Efficiency" will be on May 27, 2015 from 1:00 to 2:00 pm. More information and registration is available on EPA's website (www.epa.gov/watersense/hudwebinars).

Fair Housing Ombudsman

Renters and landlords in South Dakota have an additional place to turn when disputes arise, especially those involving Fair Housing Act issues of discrimination. Paul Flogstad of Sioux Falls has contracted with the South Dakota Housing Development Authority as a statewide Fair Housing Ombudsman.

In this role, he will act as a mediator to help find an answer that both parties can accept. If the dispute is unresolved and it potentially involves housing discrimination, he will forward the case to HUD's Office of Fair Housing. To find out more about this program, go to the Fair Housing website (www.sdhda.org/for-renters-2/fair-housing-and-your-rights.html) or contact Paul at (877) 832-0161.

Smoke-Free Trainings

A smoke-free workshop for multi-unit property managers/owners will be held at the Hilton Garden Inn on 201 E. 8th St. in Sioux Falls from 11:30 a.m. to 2:30 p.m. The workshop includes a free lunch and will address various issues related to creating smoke-free housing. Smoke-free housing creates a safer, cleaner environment for staff, visitors, and tenants and saves money on unit turnover. Participants can register here (www.siouxfalls.org/livewellsiouxfalls).

HUD's Office of Lead Hazard Control and Healthy Homes is offering a smoke-free webinar on June 4, 2015 from 1:00 to 2:15 p.m. The webinar is titled "Enforcing Smoke-Free Housing Policies and Overcoming Barriers to Implementation: On-the-Ground Strategies". Interested participants can register online.

Selling to the Government

On April 2, 2015, Roger Jacobs, Sioux Falls HUD Office Director, participated in the Small Business Administration's (SBA) "Selling to the Government" event in Sioux Falls.

Businesses were able to learn what products and services the agencies provide and how to find contracting opportunities with the agencies. Most of HUD's contracting opportunities are listed on HUD's website.The annual event is held in Sioux Falls in the spring and in Rapid City in the fall.

Fair Housing Month

The Sioux Falls HUD office and the Office of Fair Housing and Equal Opportunity (FHEO) provided fair housing training sessions in South Dakota on April 21-24.

The sessions provided over 200 property managers, owners, staff and real estate brokers in Rapid City, Pierre, Aberdeen, and Sioux Falls the opportunity to learn more about Fair Housing laws while earning continuing education credits.

There was a lot of discussion on providing reasonable accommodations for assistance animals. HUD and the Department of Justice published a Joint Statement on Reasonable Accommodations under the Fair Housing Act which provides information and guidance regarding accommodations for assistance animals.

Multifamily Housing What's New

For the most current information from HUD's Multifamily Housing HUB in Denver.

As part of Multifamily For Tomorrow's transformation, the office began publishing a bi-monthly newsletter in January 2015 for staff and stakeholders. Take a look at the new HUD Multifamily Housing News.

2015 Income Limits

On March 6, 2015, HUD released the FY2015 Median Family Income and FY 2015 Income Limits (www.huduser.org/portal/datasets/il.html).

South Dakota HUD Office
4301 W. 57th Street, Suite 101
Sioux Falls, SD 57108
Phone: (605) 330-4223
Fax: (605) 330-4465
Email: SD_Webmanager@hud.gov
Website: www.hud.gov/southdakota

This is a quarterly publication of the South Dakota HUD office. For active internet links, view the newsletter online at www.hud.gov/southdakota.

Please contact us if you have any news or updates to include in our newsletter.

Sioux Falls Office Staff

Roger Jacobs Field Office Director
Jacqueline Westover Single Family Housing Specialist
Lisa Wright Customer Service Representative

Family Self Sufficiency

HUD's Family Self Sufficiency program (FSS) allows Public Housing Authorities (PHA's) to help those receiving housing assistance work toward self-sufficiency. FSS coordinators link them to local organizations that provide job training/ placement, childcare, counseling, and transportation. Three PHA's in SD received $144,704 in FY2014 in FSS.

The PHA establishes an interest-bearing escrow account for each family. Any increases in the family's rent as a result of increased earned income is credited to their account which they may use once they graduate.

FSS Testimonials

"I realized that I can take care of myself, and I no longer felt the need to be dependent on any programs because in all honesty I was capable of paying my bills on my own, it was a scary thing because I was so dependent for so long, but "Housing" was my last program to be on, so I decided that I no longer wanted to be on any programs and I wanted to finally do this on my own. I realized that I can do this and I will, I just want to say Thank-you, and that I am glad I was given the opportunity to partake in the Family Self-Sufficiency program. I would recommend that everyone who is on Housing utilize this program, it is well worth it." (42 year old, 1child, $4,056 escrow).

"When I started with the FSS Program I was at a job that was not stable. I was able to attend school and get the education to back my years of experience in the childcare industry. The FSS Program helped me with tuition, book expense and provided my son with a safe childcare program while I attended class at night…The most important thing that this program gave me was someone who was always in my corner! I always had a cheerleader when I was excelling, a counselor when I was in need, and a warrior when I needed help in a battle!" (38 year old, 1 child, $8,326 escrow).

Looking for Your Stories

HUD's financial impact in South Dakota in FY2014 alone was over $417 million. Here's a chance to share/tell your story. How has HUD made an impact on you or the customers you serve? We would love to hear from you! Please email us your stories (SD_Webmanager@hud.gov).

Mission of the U.S. Department of Housing and Urban Development: To create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.

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Content Archived: May 3, 2017