Housing Tax Credits
South Dakota Housing Development Authority's Housing Tax Credits program supports the creation and preservation of affordable rental housing for low-income residents through federal tax incentives.
Funder: South Dakota Housing Development Authority
Due Dates: August 31, 2027 (annual application deadline)
Funding Amounts: ~$4.2 million available annually | Up to $840,000 per project | $420,000 nonprofit set-aside | $840,000 rural/tribal set-aside | 2 applications per developer
Summary: Tax credits for the construction or rehabilitation of affordable rental housing for low-income households in South Dakota.
Key Information: Applications must be submitted via the SD Housing online portal by 5:00 p.m. Central Time; strict eligibility and design standards apply.
Description
The South Dakota Housing Development Authority (SDHDA) administers a competitive Housing Tax Credits program (Low Income Housing Tax Credit, or LIHTC) to incentivize the creation and preservation of affordable rental housing for low-income households statewide. Established under Section 42 of the Internal Revenue Code, the program allocates federal tax credits to developers and investors in exchange for providing qualified affordable housing. Credits can be syndicated to raise project capital, offsetting development costs and supporting financial feasibility. The program prioritizes developments that address critical housing needs, with specific set-asides for nonprofits and projects in rural or tribal areas.
