Governor Dennis Daugaard Approves Bond Money for Home Loans
South Dakota Governor Dennis Daugaard has approved the issuance of mortgage bonds from the South Dakota Housing Development Authority(SDHDA). The money will finance loans for first time homebuyers. This is the first approval for mortgage bonds in our state since 2009.
The Governor issued the following statement:
“The increase of demand in our housing market is an indication that South Dakota’s economy is recovering. As more are buying homes for the first time or considering homeownership, South Dakotans seem to have a renewed sense of optimism.”
The SDHDA has been purchasing single-family loans since 1973. However, there has not been a large bond issue without federal subsidies since the recession in 2009.
Sixty-seven million dollars in bonds is going to the First-Time Homebuyer Program. The money will fund home loans for approximately 600 low- to moderate-income South Dakotans.
Representatives of the Housing Authority stated the increased demand for homes this year has been substantial. Through April of 2013, the number of first time homebuyer loans increased by 95 percent in comparison to 2012, and by 23 percent in comparison to 2011, the last year of the $8,000 federal tax credit for homebuyers funded with federal stimulus dollars.
The recession did not damage the South Dakota economy as deeply as other states in the country.
An indicator of the health of our local economy is the number and value of single family building permits issued in Sioux Falls. As of June 24th, we are on a positive record breaking pace.