South Dakota · State Subsidy Center

South Dakota affordable housing finance.

SDHDA is South Dakota's state housing development authority, allocating federal LIHTC, issuing multifamily and single-family bonds, administering federal HOME, NHTF, Section 8, and operating South Dak.

State HFA
SDHDA
South Dakota Housing Development Authority
Tax credit programs
Federal LIHTC
Federal LIHTC via SDHDA; no broad state LIHTC
State housing trust funds
SD Housing Opportunity Fund
State housing trust fund administered by SDHDA
State rental assistance
Limited statewide
Primarily federal Section 8 admin via local PHAs and SDHDA
2026 PAB cap
~$397M
Per-capita $135 × 0.91M population — floor applies
FHLB district
FHLBDM
FHLB of Des Moines

The South Dakota housing-finance ecosystem

South Dakota's housing pipeline draws on a mix of state agencies, federal pass-through programs, and local frameworks. Programs span the full spectrum: low-income rental, supportive housing for special-needs populations, workforce / missing-middle housing, homelessness prevention, first-time homebuyer assistance, mixed-use redevelopment, and disaster recovery. Below is a directory of every currently-active state-level and major-local program, organized by administering agency.

State Housing Development Authority

South Dakota Housing Development Authority (SDHDA)

SDHDA is South Dakota's state housing development authority, allocating federal LIHTC, issuing multifamily and single-family bonds, administering federal HOME, NHTF, Section 8, and operating South Dakota's primary first-mortgage homebuyer products plus the South Dakota Housing Opportunity Fund.

Federal 9% LIHTC

Competitive · Rental

SDHDA allocates South Dakota's federal 9% LIHTC ceiling — approximately $3.1 million in 2026 following OBBBA's 12% increase. Annual competitive QAP process.

IRC § 42 · SDHDA Deep-dive coming soon

4% LIHTC + Multifamily Bonds

Non-competitive · Bonds

Non-competitive 4% LIHTC paired with SDHDA-issued multifamily revenue bonds.

IRC § 42(h)(4) · SDHDA Deep-dive coming soon

South Dakota Housing Opportunity Fund

State capital subsidy

South Dakota's state-funded housing trust fund administered by SDHDA. Supports affordable rental and homeownership development plus supportive housing.

SDCL § 11-11A · SDHDA Deep-dive coming soon

HOME Investment Partnerships

Federal pass-through

SDHDA administers South Dakota's HOME allocation, primarily for multifamily rental development paired with LIHTC.

42 U.S.C. § 12701 · SDHDA Deep-dive coming soon

National Housing Trust Fund (NHTF)

Federal pass-through · ELI

SDHDA administers South Dakota's NHTF allocation for housing serving extremely-low-income households.

12 U.S.C. § 4568 · SDHDA Deep-dive coming soon

Section 8 Housing Choice Voucher

Federal vouchers · SDHDA admin

SDHDA administers Section 8 HCV in jurisdictions not served by a local PHA.

24 CFR Part 982 · SDHDA Deep-dive coming soon

Section 811 Project Rental Assistance

Operating subsidy · Disability

SDHDA administers South Dakota's HUD Section 811 PRA allocation for extremely-low-income persons with disabilities.

42 U.S.C. § 8013 · SDHDA Deep-dive coming soon

Permanent Supportive Housing

Supportive housing · Coordinated

SDHDA capital subsidy for permanent supportive housing combined with operating subsidies from South Dakota Department of Social Services.

Tribal Housing Partnerships

Tribal housing

SDHDA partnerships with the nine federally-recognized tribes in South Dakota supporting tribal housing development through federal IHBG and LIHTC partnerships.

SDHDA First-Time Homebuyer Program

Homeownership · Below-market mortgage

SDHDA's flagship single-family first-mortgage product for first-time homebuyers offering below-market rates through participating lenders.

SDHDA Fixed Rate Plus / Governor's House Program DPA

Homeownership · DPA

SDHDA's DPA programs providing assistance combinable with SDHDA first mortgages, including the Governor's House Program for ultra-affordable homeownership.

SDHDA Mortgage Credit Certificate

Homeownership · Federal tax credit

Federal income-tax credit for eligible first-time buyers equal to a percentage of mortgage interest paid annually.

IRC § 25 · SDHDA Deep-dive coming soon

Governor's House Program

Homeownership · Ultra-affordable

Unique South Dakota program providing ultra-affordable homes to qualifying low-income buyers — homes constructed at South Dakota State Penitentiary by trade-program inmates, sold below market through SDHDA.

Department of Tourism & Other State Programs

South Dakota Department of Labor & Regulation + Governor's Office

South Dakota Department of Labor and Regulation administers federal CDBG plus state economic development programs that interact with workforce housing.

CDBG (state-administered)

Federal pass-through · Non-entitlement

South Dakota administers federal CDBG for non-entitlement South Dakota communities.

42 U.S.C. § 5306 · SD Deep-dive coming soon

South Dakota Historic Property Tax Moratorium

Property tax · Historic rehab

South Dakota's property tax moratorium for substantial rehabilitation of historic properties. Provides 8-year property tax freeze on improvements, paired with federal HTC for adaptive-reuse housing.

SDCL § 1-19A-20 Deep-dive coming soon
Local Housing Programs

Sioux Falls, Rapid City, and major SD local programs

Sioux Falls and Rapid City operate local affordable housing programs supplementing SDHDA's statewide activity.

Sioux Falls Affordable Housing

Local subsidy

Sioux Falls's affordable housing programs through the Community Development Department supporting affordable rental and homeownership development.

City of Sioux Falls Deep-dive coming soon

Rapid City Affordable Housing

Local subsidy

Rapid City's affordable housing programs combining federal HOME and CDBG resources with local programs.

City of Rapid City Deep-dive coming soon

How South Dakota programs typically combine

Programs combine differently depending on what you're building. A short reference of representative stacks across the program-type spectrum:

  • Statewide 9% LIHTC: 9% LIHTC + SD Housing Opportunity Fund + HOME + NHTF.
  • 4% LIHTC + bonds: 4% LIHTC + SDHDA bonds + SHOF.
  • Tribal housing: IHBG + 9% LIHTC + SDHDA partnership.
  • Permanent supportive housing: 9% LIHTC + Section 811 PRA + DSS operating subsidy.
  • Historic adaptive reuse: Federal HTC + SD Historic Property Tax Moratorium + 4% LIHTC + SDHDA bonds.
  • First-time homebuyer: SDHDA First-Time + Fixed Rate Plus DPA + MCC. Governor's House Program for ultra-affordable.

Post-OBBBA implications

  • Permanent 12% LIHTC increase: South Dakota's annual 9% LIHTC ceiling is permanently larger starting 2026.
  • 25% PAB financed-by test: for bonds issued after December 31, 2025, materially expanding the pipeline of 4% LIHTC deals that can be supported per dollar of bond volume cap.
  • Permanent OZ designations: Qualified Opportunity Zone designations gain permanence; Rural OZ provisions may apply in qualifying portions of the state.
  • Section 45L / 179D termination (June 30, 2026): Developers pursuing energy-efficient construction should accelerate placed-in-service dates.

This is educational reference material for affordable-housing practitioners, not legal, tax, financial, or investment advice. State program details, funding levels, and rules change frequently — consult the relevant state agencies and qualified counsel before structuring any transaction. See Disclaimer.