Explore South Dakota Housing Development Programs
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A Vital Need
South Dakota is growing—and with that comes a vital need for new and rehabilitated housing that can serve a variety of communities. SD Housing offers programs to assist developers in the quest of developing more affordable housing options to South Dakotans. From tax credits to other funding sources, SD Housing is here to help.
Available Development Programs
Housing Needs Study
Providing communities with in-depth data to identify local housing gaps and guide smart development decisions.
Housing Opportunity Fund
Supporting a wide range of housing solutions—from homebuyer assistance to infrastructure—with flexible, community-driven funding.
BuildSpec
Designed to loan construction money at low interest rates to incentivize builder members of the South Dakota Home Builders Association to build speculative homes.
Governor’s House Program
A program offering affordable, energy efficient homes to income-qualified residents.
Construction Loan Guarantee
A program that partners with lenders to guarantee up to 50% of construction loans for contractors building affordable single-family homes in communities with a documented housing need.
Relocation & Displacement
The Relocation and Displacement program ensures federally funded housing projects provide required relocation protections and assistance to tenants affected by displacement.
Infrastructure Financing
Low-interest loans and grants to support essential infrastructure for new housing developments—helping communities grow from the ground up.
HOME Program
Helping communities create affordable housing through funding for rehabilitation, new construction, and rental assistance.
Bond Financing
This program provides multifamily housing developers with permanent and construction loans through the sale of tax-exempt or taxable revenue bonds.
Housing Tax Credits
Incentivizing the development of affordable rental housing by offering federal tax credits to developers.
Housing Trust Fund
Delivering targeted assistance to extremely low-income households through grants for rental and transitional housing.
DakotaPlex
Offering cost-effective, manufactured housing options to help South Dakota communities expand affordable living.
Forms & Resources
Download the forms and access the resources you need to get started developing housing through SD Housing.
Who Should Apply?
Developers, nonprofits, tribal entities, and local governments planning to build or preserve affordable housing in South Dakota should apply. Submit one complete application per project, combining multiple funding programs if needed, through SD Housing’s online portal.
Case Studies
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![Image of the Herreid, SD Governor's House developed by Herreid Area Housing Development, Inc. through SD Housing Development Programs.]()
Herreid, South Dakota
GOVERNOR’S HOUSE
HOUSING OPPORTUNITY FUNDS: $120,000
DEVELOPER: Herreid Area Housing Development, Inc.
DETAILS: A new-construction three-bed, two-bath Governor’s House with a full basement, 12’ x 12’ entry, and an attached two-stall garage. The entry provides basement access without impacting the main living space. Built for resale, the homebuyer was required to meet the Governor’s House income qualifications.
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![A newly constructed single-family home within the Branch Creek Housing Development]()
Brookings, SD
BRANCH CREEK
HOUSING INFRASTRUCTURE FINANCING PROGRAM GRANT: $1,688,695
DETAILS: The housing project was supported by the Housing Infrastructure Financing Program (HIFP), creating infrastructure for 100 lots for 135 single-family housing units, including homes, townhomes, and duplexes. The project received a $1,688,695 HIFP grant, helping reduce lot prices by $10,000–$30,000 so homes remain within first-time homebuyer price limits. Infrastructure construction was completed in 2024, and home development continues to move forward.
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![Image of the Timber Lake, SD DakotaPlex developed by Timber Lake Area Development through SD Housing Development Programs.]()
Timber Lake, South Dakota
DAKOTAPLEX
HOUSING OPPORTUNITY FUNDS: $192,000
DEVELOPER: Timber Lake Area Development
DETAILS: A new-construction DakotaPlex Duplex featuring two three-bed, two-bath units, each with a two-stall attached garage. Built as a rental property, one unit must be occupied by tenants earning no more than 115% Average Median Income for South Dakota. Rent for both units must remain at or below the maximum rent at 70% of the state median income.
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![SD Housing Project Forty-One Flats in Sioux Falls, SD]()
Sioux Falls, SD
FORTY-ONE FLATS
HOUSING TAX CREDIT EQUITY: $4,980,000
HOME FUNDS: $1,000,000
HOUSING TRUST FUNDS: $600,000DEVELOPER: ICAP
DETAILS: This project involves the new construction of a three-story, 41-unit apartment complex offering a mix of one- to four-bedroom units. All apartments are income-restricted through Housing Tax Credits at 60% AMI or below, with additional HOME units at 50% AMI and HTF units at 30% AMI. The property also includes shared amenities such as a community room, playground, sports court, and storage space.
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![Image of the Frederick, SD Twin Home developed by Frederick Development Corporation through SD Housing Development Programs.]()
Frederick, South Dakota
FREDERICK 5TH STREET DUPLEX
HOUSING OPPORTUNITY FUNDS: $250,000
DEVELOPER: Frederick Development Corporation
DETAILS: A new-construction twin home consisting of one three-bed, two-bath unit and one two-bed, two-bath unit. Built for resale, one of the homebuyers was required to income-qualify at 115% average median income for Brown County.
DEVELOPER FUNDING PROGRAM GUIDE
Ready to build more affordable housing in South Dakota?
Download the SD Housing Development Funding Program Guide and explore funding opportunities designed to help developers, builders, and communities create quality, affordable homes across the state. Learn about loans, grants, tax credits, and infrastructure programs—all in one place.
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