Sioux Falls Residents: Your City is Calling for Affordable Housing Project Proposals

Sioux Falls is looking for project proposals to address the housing needs of very low-income households. These projects will be funded by the 2024 Housing Needs Fund, a new initiative. This fund, totaling $5.84 million, combines City and federal money to create housing for those earning 30 to 40 percent of the area median income (AMI).

Logan Penfield, the Housing Development Manager for Sioux Falls, is hopeful about the initiative. He pointed out the city's strong community of nonprofits, developers, and partners working on housing affordability. He stressed the need for creative solutions for housing at the 30 to 40 percent AMI level, recognizing the complexity of the issue.

The City's call for proposals comes after an update to the 2021 Housing Needs Assessment by the Augustana Research Institute. The update showed that the biggest affordability gap in Sioux Falls is for households earning 30 to 40 percent of the AMI. The 2023 update identified a need for 3,650 studio and one-bedroom units at or below 30 percent AMI by 2028.

Applications for the 2024 Housing Needs Fund should show how the funds will be used to create units at the target AMI level. Preference will be given to nonprofits or companies working with nonprofits with a track record of addressing housing issues. Projects that include a 20-year or longer affordability period, rehabilitate existing buildings, offer connected services, and have mixed incomes will be preferred.

Applications can be submitted to the City’s Housing Division and will be accepted as long as funding is available. Proposals will be reviewed by the Accessible Housing Advisory Board (AHAB), a joint citizen board between the City and Minnehaha County. The final contract needs approval from the Sioux Falls City Council.

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