Please contact our Community Development Specialists for more information
Community Facilities and Infrastructure
Community Development Block Grant (CDBG)Deadline: April 1 and October 1
CDBG grant funds are available to cities and counties, which may apply on behalf of other non-profits or units of government. Examples of eligible projects include improvements to or construction of: water and sewer infrastructure, fire halls, community centers, health care clinics or hospitals and libraries. Funds may also available to local governments to assist businesses with the creation of new jobs. Funds may be used for infrastructure to serve new or expanding businesses. This program has income eligibility requirements for all applicants. The CDBG program typically funds 50% of construction costs up to $2,000,000.
USDA Rural Development; Community Facilities and Water/Wastewater ProgramsDeadline: year-round
Grants and loans are available to construct, enlarge, or improve community facilities; to construct, repair, or expand water and/or wastewater systems; or for private business and industry acquisitions, construction, modernization, equipment, machinery, start-up costs, and working capital. Loan and grant ratios and rates are based on ability to pay and median household income.
Economic Development Association (EDA)Deadline: year-round
EDA established assistance programs which are available to rural and urban areas that are experiencing high unemployment, low income, or other severe economic distress caused by events such as natural disasters, closure of military installations or other Federal facilities, changing trade patterns, or depletion of natural resources. The purpose of the program is to generate jobs, help retain existing jobs, and stimulate growth in economically-distressed areas of the United States. Grants are provided to EDA-designated areas to help industries and businesses that generate long-term jobs having a regional impact. The types of projects typically funded in our region are water, sewer, and access roads located in industrial parks, and business incubator buildings.
Department of Agriculture and Natural Resources (DANR)Deadline: Jan 1, April 1, July 1 and Oct 1
The South Dakota DANR has several programs available to communities including: Consolidated Water Facilities Construction program, Drinking Water and Clean Water State Revolving Fund Loans, and Water Quality grants. DENR grants and loans are available to assist with community infrastructure projects, such as drinking water systems, waste water systems, storm water systems, and lake and stream projects. Projects must be listed on the State Water Plan to be eligible to apply.
State Water PlanDeadline: February 1st, May 1st, August 1st, and October 1st
Units of government, non-profits, lake associations, and rural water systems are eligible to list water, sewer, storm water, and lake and stream projects on the State Water Plan. A project must be listed on the State Water Plan in order to be eligible for grant and loan funds from DANR.
Small Community Planning GrantDeadline: year-round
Provides grants to communities with populations of 2,500 or less for the purpose of hiring an engineering firm to complete a system wide water or sewer study. It also can be used for completing a water or sewer rate analysis.
Solid Waste ManagementDeadline: Jan 1, April 1, July 1 and Oct 1
The Solid Waste Management Program provides grants, loans, or a combination of grants and loans for solid waste disposal, recycling, and waste tire projects. Applicants must clearly show how the project will advance the State’s solid waste management hierarchy; volume reduction at the source; recycling and reuse; use for energy production; and disposal in landfill or combustion for volume reduction. Eligible applicants include: individuals, partnerships, limited liability companies, corporations, counties, cooperatives, municipalities, regional or state-wide planning agencies, federally recognized Indian tribes, or special purpose districts that have the authority to construct or operate solid waste, waste tire, or recycling facilities.
Economic Development Association (EDA)Deadline: year-round
The Agri-Business Access Grants Program is a means for local governments to address road needs associated with new agri-business, such as ethanol plants, large scale elevators, etc. In many cases, these new Agri- businesses create additional truck traffic that an existing road may not be built to take. A minimum of five (5) new jobs will be created by the industrial or economic development. There is a minimum investment of at least five (5) times the required state participation costs. The state provides 80% of the project costs on a reimbursement basis. Grant amount is a maximum of $600,000.
The Industrial Park Access Program is a means to assist cities and towns who have a new industry coming to their community and need new or expanded access to the industry. There is a minimum committed capital investment of at least five (5) times the required state participation costs. The total employment for all facilities in the industrial park or development projects should be at least 50. A minimum of five (5) new jobs will be created by the development. The SDDOT provides 80% of the project construction costs on a reimbursement basis for roads within or providing access to an industrial park. The grant amounts are limited to $500,000 project.
Transportation
Department of Transportation Community Access Grant ProgramDeadline: July
This program assists towns smaller than 5,000 in population to construct/reconstruct main streets, the road to elevator, school, business district, etc. In addition to the Community Access Grant program, grants are also available for industrial park access streets for new or expanding businesses and/or agri-business industries. Grants are available on a competitive basis to local units of government and a local match is required.
Agri-Business and Industrial Park Access GrantDeadline: April, July, and October
Grants and loans are available to construct, enlarge, or improve community facilities; to construct, repair, or expand water and/or wastewater systems; or for private business and industry acquisitions, construction, modernization, equipment, machinery, start-up costs, and working capital. Loan and grant ratios and rates are based on ability to pay and median household income.
Transportation Alternatives ProgramDeadline: July (Letter of Intent) and October (Full Application)
Transportation Alternatives (TA) is a program that uses federal transportation funds, designated by Congress, for specific activities that enhance the inter-modal transportation system and provide safe alternative transportation options. TA encompasses a variety of smaller-scale non-motorized transportation projects such as pedestrian and bicycle facilities, recreational trails, safe routes to school projects, community improvements such as historic preservation and vegetation management, and environmental mitigation related to storm water and habitat connectivity. Projects may be limited to $600,000 depending on annual funding allowance. The minimum for infrastructure projects will be $50,000. There is no minimum for non-infrastructure projects. Minimum local match required is 18.05%.
Hazard Mitigation, Planning, and Emergency Response
Hazard Mitigation Grant Program (HMGP)Deadline: Typically, due within one year of a presidentially declared disaster
The HMGP provides grants to States and local governments to implement long-term hazard mitigation measures after a major disaster declaration. The purpose of the HMGP is to reduce the loss of life and property due to natural disasters and to enable mitigation measures to be implemented during the immediate recovery from a disaster.
Building Resilient Infrastructure and CommunitiesDeadline: December
The Building Resilient Infrastructure and Communities (BRIC) program aims to categorically shift the federal focus away from reactive disaster spending and toward research-supported, proactive investment in community resilience. Examples of BRIC projects are ones that demonstrate innovative approaches to partnerships, such as shared funding mechanisms, and/or project design. While there are nationally competitive funds available to apply for, each state does receive an allotment each year to spend on specific projects in the respective state. The deadline for competitive and state allocation will be the same.
Pre Disaster Mitigation (PDM)Deadline: December
The PDM program provides funds to states, territories, Indian tribal governments, communities, and universities for hazard mitigation planning and the implementation of mitigation projects prior to a disaster event. The State of South Dakota receives a direct allocation of funds to be awarded to units of government, private businesses, and non-profits that have formally adopted a disaster mitigation plan that has been approved by FEMA. The BRIC is a similar program with the exception that applications to this program are competitive nation-wide; funding is not allocated directly to the State, but rather drawn from a National pool of money. Funding must be used for disaster mitigation plans or projects that reduce overall risks to the population and structures, while also reducing reliance on funding from actual disaster declarations.
Assistance to FirefightersDeadline: January
The Assistance to Firefighters Grant program is available for fire departments and non-affiliated EMS organizations. Grants can be used for vehicle acquisition, operations and safety, or regional projects. This program is administered by FEMA and is intended to help ensure applicants are able to meet the needs of the populations served.
Recreation
Recreation Trails ProgramDeadline: early spring - please call
The mission of the South Dakota Department of Game, Fish, and Parks Recreational Trails Program is to solicit and encourage support from the private and public sector, which will facilitate the preservation and protection of our natural resources for parks and wildlife, and provide expanded recreational access opportunities for the people of South Dakota and their guests. Eligible projects include: maintenance and restoration of trails, trail bridges, and signs; development or rehabilitation of trailside or trailhead facilities that have a direct relationship with the recreational trail; construction of new trails; trail accessibility studies; and educational projects.
Land and Water Conservation Fund (LWCF)Deadline: spring - please call
LWCF provides federal financial assistance for the acquisition and development of outdoor recreation land and facilities. South Dakota political subdivisions (city, county, township) and tribal governments are eligible to apply for LWCF grants. Funds are available every year. LWCF grants require a 50 percent applicant contribution. Eligible projects include but are not limited to: playground equipment, ball fields, pickleball courts, amphitheaters, boat ramps, fishing facilities, lighting, landscaping, ice rinks, restroom buildings, trails, etc.
Housing
South Dakota Housing
HOMEDeadline: August
The primary purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing for very low-income and low-income households as determined by the Income Limits. U.S. Department of Housing and Urban Development provides annual funding to participating jurisdictions (SD Housing) to develop their own programs in partnership with local governments, nonprofit organizations, and the private sector. The HOME Program provides funds to developers and/or owners for the acquisition, new construction, and rehabilitation of affordable housing. The typical financing package would consist of 10% owner equity, 40% conventional loan, and 50% HOME funds. The HOME funds are loaned at a 0% interest rate with variable repayment terms.
Community Housing Development Program (CHDP)Deadline: Open
The objective of the Community Housing Development Program (CHDP) is to provide a financial resource to help address the housing needs of South Dakota communities. Based on the needs identified by market studies, SD Housing can provide financial assistance for the development of rental housing opportunities. Funds may be used for households at or below 120% of the Area Median Income. Public or private nonprofits or profit-oriented individuals(s), corporations, partnerships, limited partnerships, or organizations can apply for the CHDP funds. A portion of CHDP can be utilized for infrastructure financing for the development of homeownership and rental housing in partnership with local governments who have committed to the housing development by providing assistance, such as tax increment financing.
Housing Tax Credits (HTC)Deadline: August
The Low Income Housing Tax Credit Program was designed as an incentive for construction and rehabilitation of housing for low-income households. Developers of housing tax credit projects typically raise equity capital for their projects by syndicating the tax credits to investors who are willing to invest in the project. The investors' return is the annual tax credit and other economic benefits generated by the project. The U.S. Department of Treasury annually allocates in excess of $3.1 million to South Dakota. SD Housing, as the credit-issuing agency, is responsible for the administration of the tax credits.
Housing Opportunity Fund (HOF)Deadline: August
The South Dakota Housing Opportunity Fund (HOF) is designed to promote economic development in South Dakota by expanding the supply of decent, safe, sanitary and affordable housing targeted to low- and moderate-income families and individuals in South Dakota. HOF funds may be used for new construction or the purchase and rehabilitation of rental or homeownership housing, housing preservation, including home repair grants and grants to make homes more accessible to individual with disabilities, homelessness prevention activities, and community land trusts. Any for-profit entity, nonprofit entity, tribal government, housing authority, political subdivision of this state or agency of such subdivision, or agency of this state is eligible to apply for funding.
Housing Trust FundDeadline: August
The primary purpose of the Housing Trust Fund (HTF) is to expand the supply of decent, safe, sanitary, and affordable housing with primary emphasis placed on affordable housing for extremely low-income South Dakotans (30% AMI or below). The HTF Program funds developers and/or owners for the acquisition, new construction, and rehabilitation of multifamily rental housing. Other eligible activities include relocation assistance and reasonable administration and planning costs. All rental housing developed with HTF funds has a minimum 30-year affordability period. The HTF funds may be provided as zero percent loans, deferred payment loans, or forgivable loans. The funds may be used with other funding sources such as HOME, HTC, and HOF.
Housing Infrastructure Finance ProgramDeadline: 2023
The Housing Infrastructure Fund was created, to be administered by South Dakota Housing, for the purpose of making loans and grants for housing infrastructure projects. SD Housing was allocated $200 million to provide loans and grants for the development of housing infrastructure. $150 million from the SD general fund and $50 million from the American Rescue Plan Act (ARPA) of 2021. $100 million in general funds in the form of low-interest loans. $50 million in ARPA funds and $50 million in general funds in the form of grants.
USDA Rural Development
Single Family Guaranteed and Direct Loans (502 Program)Deadline: Open all year
The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify. Income cannot exceed 115% of median household income.
The 502 Direct Loan Program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
Mutual Self Help Housing Technical Assistance GrantsDeadline: Open
Provides grants to qualified organizations to help them carry out local self-help housing construction projects. Grant recipients supervise groups of very-low- and low-income individuals and families as they construct their own homes in rural areas. The group members provide most of the construction labor on each other’s homes, with technical assistance from the organization overseeing the project. Eligible applicants include government non-profit organizations, federally-recognized tribes, and private non-profit organizations.
Rural Housing Site LoansDeadline: Open
Rural Housing site loans provide funds to acquire and develop sites for low- or moderate-income families, with no restriction as to the method of construction. Low-income is defined as between 50-80% of the area median income (AMI); the upper limit for moderate income is 115% of the AMI.
Housing Preservation GrantsDeadline: June
Housing Preservation Grants provides grants to sponsoring organizations for the repair or rehabilitation of housing owned or occupied by low- and very-low-income rural citizens. USDA will award a total of $18,500,000 in Housing Preservation Grant Program funding for the repair and rehabilitation of rural housing units, which includes $2,500,000 for Presidentially Declared Disaster Areas ($50,000 maximum award). Most state and local governmental entities, nonprofit organizations, and federally recognized tribes may apply.
Federal Home Loan Bank of Des MoinesDeadline: June
Since the inception of the Affordable Housing Program in 1990, FHLB Des Moines has awarded $844.4 million to provide affordable housing opportunities to more than 124,000 families and individuals. The Competitive Affordable Housing Program encourages partnerships between our member financial institutions and local housing providers (sponsors) to secure funds for the purchase, construction or rehabilitation of affordable homeownership or rental housing units.
