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Posts Tagged ‘affordable housing’
Part 2: Neighborhood Stabilization What?
January 30th, 2009
As promised, here are descriptions of the remaining two activities that are included in South Dakota’s Neighborhood Stabilization Program Plan. If you haven’t read part one, you can check it out here. We’ve tried hard to distill the information contained in the plan to help you decide if this is an opportunity your community can and should pursue.
Activity 3. Demolish Blighted Structures
- Applicants will be required to provide information, including pictures, of the blighted structures, along with costs associated with the demolition and future plans of the real property upon completion of demolition.
- NSP funds can only be used for the cost of clearing the blighted structure. No NSP funds can be requested for purchase of the blighted structure unless the project also qualifies under acquisition of an abandoned or foreclosed property.
- NSP funding will be $10,000 for single family homes or $100,000 for all other types of structures.
Only $1 million dollars is allotted towards this activity, so rural communities should not view this as an opportunity to tear down all of their unwanted, blighted properties for free. However, if you’ve got a property or two that you plan to redevelop into housing, this might be a real opportunity for your community.
A few additional tips to think about if you’re considering Activity 3:
- You may not use NSP funds to purchase blighted properties unless the property also qualifies as an abandoned or foreclosed property.
- Matching monies will strengthen your application for these funds, so work with your city council to see if they have dollars they are willing to dedicate towards a match.
Activity 4. Redevelop Demolished or Vacant Property
- NSP funding will be eligible for acquisition and redevelopment of acquired demolished or vacant property for activities including: new construction of housing, building infrastructure for housing, public facilities and improvements, and non residential uses such as public parks, commercial use, or mixed residential and commercial use.
- Providing NSP funds are used only for redevelopment activities, the property does not need to be abandoned, foreclosed upon, or previously residential.
- Redevelopment of demolished or vacant property can incorporate the use of a governor’s house
- Preference will be given for permanent housing projects serving households at or below 50 and 80% Area Median Income (AMI).
This activity offers great opportunity for a community who sees affordable housing as a strategic goal. With your city council on board, this activity offers a way to leverage new housing for the community. The city council could tear down a vacant, blighted structure and NSP funds could be used to construct new housing or put in a governor’s home. Everyone wins: the city now has a property on the tax role and local businesses have a family who is more permanent and invested.
A few additional tips to think about if you’re considering Activity 3:
- You’ll notice that preference under this activity is for 80% AMI or below-this income guideline will encourage you to work with partners like Habitat for Humanity and Self-Help Housing Programs that are available in your community or region.
- Many rural communities will have homes that were torn down decades ago–those vacant properties are a perfect fit for this activity .
That’s all for now on the Neighborhood Stabilization Program. If you have questions about South Dakota’s plan, I’d encourage you to contact Peggy Severson, the new NSP coordinator for the state. Also, feel free to submit a question in the comment box, and we’ll do our best to find an answer!
Tags: affordable housing, Habitat for Humanity, Neighborhood Stabilization Program, rural housing
Posted in Housing, Rural | Comments (0)
Governor’s House to Ramona, South Dakota
November 13th, 2008
Congratulations to the people of Ramona, South Dakota for bringing a Governor’s House to their community.
Many of our rural, South Dakota communities have a shortage of affordable housing, and the Governor’s House program is one possible solution to the problem. As today’s Madison Daily Leader notes, many South Dakota communities have brought Governor’s Houses to their towns by having the local economic development corporation purchase the house, put it on a foundation, and then sell it to a qualifying buyer. That’s no easy task – but it can be rewarding.
To learn more about how you can purchase a Governor’s House, go to the South Dakota Housing Development Authority’s (SDHDA) website.
Tags: affordable housing, Governor's House, Ramona SD, rural housing, SDHDA
Posted in Economic Development, Housing, In the News, Rural | Comments (0)