It’s part of the latest round of state housing infrastructure aid totaling $19 million for 19 projects

By Searchlight staff, South Dakota Searchlight and Siouxland Observer staff

The South Dakota Housing Development Authority Board signed off on another $19 million in housing infrastructure funding for 19 projects on Tuesday.

Part of that money included a $2,707,580 grant to PBR Capital Group LLC for the Union Crossing Development – Phase 1 in North Sioux City. The project consists of infrastructure development to accommodate 136 homes, which will include 56 single-family homes, 18 triplexes, six fourplexes, and one duplex.

PBR Capital Group, LLC has been planning its development with the City of North Sioux City for several months. Tract 1 of the Union Crossing Addition was rezoned from Residential (R-1) to a Planned Development District (PD) when the city council approved the second reading of Ordinance 2023-19 on Sept. 18.

The company appeared before the North Sioux City Council last month with a proposed memorandum of understanding which would outline what the developers and the city government would agree to do in regards to the project. At the meeting, PBR consultant Jeff Dooley told the council that their emphasis was affordable housing. “That means pricing at around $340,000 per unit,” Dooley said. “We also want to target first-time home buyers in our workforce housing.

One of the things the city agreed to do was to create one or more tax increment financing district(s) (TIF) for the purpose of generating tax revenue to be used for eligible costs and expenses under the South Dakota Tax Increment Financing Districts law to support the project in an estimated amount up to $11.6 million. It is anticipated that three separate TIF districts will be established.

Now, with the $2.7 million grant in hand, plus the likelihood of establishment of local or affordable housing TIF districts it looks like PBR may be closer to proceeding with their project.

Other South Dakota Siouxland communities and their projects include:

• Elk Point Investments, LLP – $1,243,540 for the Elk Point Community Infrastructure Project located on the south side of Elk Point’s Main Street. The project consists of infrastructure development for 56 single-family lots.
• City of Beresford – $1,023,833 for the Bak Property Housing Development. The project consists of infrastructure development for 59 single-family lots.
• City of Vermillion – $1,418,344 for the Jack Powell Addition Development. The project consists of infrastructure development for 13 single-family lots and four multifamily lots that will provide 110 multifamily housing units.
• Centerville Economic Development Corporation (CEDC) – $483,968 for The Harvest Pointe Development Project. The project consists of infrastructure development for 18 single-family lots and four twin-home lots for a total of 26 dwellings.
• Yankton Thrive, Inc. – $1,260,000 for Yankton Thrive Manitou North in Yankton. The project consists of infrastructure development for two parcels of land for 126 multifamily units.
• Yankton Thrive, Inc. – $1,628,925 for Yankton Thrive Garden Estates. The project consists of infrastructure development for 90 single-family lots.

The ultimate beneficiaries of the grant funding will include seniors in Watertown, students and residents in Vermillion, along with home buyers or renters in Worthing, Miller, Beresford, Centerville, Canton and Aberdeen. One project will see grant funding used to develop a now-shuttered nursing home in Salem into 27 homes and eight apartments.

Now in its third month of awards for the $200 million program, the housing board has signed off on grants and loans totaling more than $77 million for 46 projects across South Dakota.

The money was allocated in 2023 by the South Dakota Legislature after late-session tweaks to a 2022 bill meant to create the program sparked questions about the housing board’s legal authority to award the funds. It’s meant to help address a workforce housing shortage in South Dakota by helping developers cover the swelling costs for street construction, water and sewer lines, street lights and other infrastructure-related building expenses.

Chas Olson, the Housing Development Authority’s director, told South Dakota Searchlight in October that the $200 million cash infusion represents the agency’s most substantial single funding pool. The authority also helps finance affordable housing projects, largely funded through federal grants and administers the state’s first-time homebuyer and repeat homebuyer programs.

“$200 million is by far the largest funding allocation we’ve ever gotten,” said Olson, who’s worked for the HDA for nearly a decade and ascended to its directorship after the resignation of former director Lorraine Polak in late March.

The board will consider more applications for housing infrastructure funds next month.