U.S. Senator Mike Rounds, South Dakota Ellsworth Development Authority and Black Hills Area Community Foundation (BHACF) announced a $30 million federal funding award on Monday, Aug. 12, aimed at addressing affordable housing challenges across the Black Hills region.
The funding will be used to establish locally led housing trust funds for Black Hills communities. These trust funds will provide flexible, low-interest gap financing for developers and purchasers to construct or retain below-market rate housing. Using a revolving loan model, the trust funds provide a perpetual source of support for each community.
Rounds included this request in the 2024 Consolidated Appropriations Act, H.R.4366, which awards the funding to South Dakota Ellsworth Development Authority. As a trusted partner, BHACF will administer and deploy the funding to borrowers. A local advisory board will guide each trust fund, making recommendations to suit their community’s interests and needs.
In preparation for the funding to arrive, local leaders have established advisory boards in the Ellsworth area, Rapid City, Belle Fourche, Deadwood-Lead, Spearfish, Sturgis, Hill City, Hot Springs and Custer. The trust fund in the Ellsworth area will address the rapid population growth expected to accompany the incoming B-21 Raider bomber program.
“Senator Rounds has secured a critical step toward ensuring we are well-prepared for the B-21 expansion to Ellsworth Air Force Base. The housing trust funds will help create critical housing infrastructure to take care of our men and women in uniform, their families and other citizens who will arrive with the launch of the B-21 program,” said Scott Landguth, executive director of South Dakota Ellsworth Development Authority.
The trust fund model has proven successful in Rapid City through BHACF’s Strategic Housing Initiative. Loans from the Rapid City Strategic Housing Trust Fund have assisted, or will assist, in the creation of over 550 affordable units in the area.
“After a successful proof of concept in Rapid City, we are thrilled to partner with Senator Rounds, Ellsworth Development Authority and many other regional partners to expand this model across the Black Hills. Housing trust funds offer a flexible, perpetual tool that will bring improved housing stability to many families for generations to come,” said Chris Huber, CEO of BHACF.
Low inventory continues to drive up housing costs across the Black Hills. The issue is compounded by population growth, high borrowing rates, rising property values and workforce shortages in technical trades. The creation of housing trust funds marks a crucial step in tackling this pressing issue.
Learn more about BHACF’s Strategic Housing Initiative.