buildingsd_web

 

History and Impact

During the 2013 South Dakota Legislative Session, the legislature enacted SB 235, Governor Dennis Dauguaard’s proposal to finance a new, comprehensive economic development program for the state. In 2014, the State Legislature passed two bills which continued and broadened support for Building South Dakota. SB 157 appropriated $30 million in one-time dollars (over a three-year period), which was derived from the state’s unclaimed property reserves. SB 158 built a mechanism for future funding of the program as long as state reserve requirements are met (at or above 10 percent). In total, 80 percent of the allocated 2014 Building South Dakota funds have been used. If money remains at the end of a fiscal year, these dollars are rolled over into the following year’s fund. Though Building South Dakota takes money out of the state’s tax base, its intent is to strengthen the state’s budget over time. Building South Dakota is administered by the Bureau of Finance and Management.

Since 2013, the Building South Dakota Fund has deployed $19,287,289 to 93 unique organizations in four defined areas of housing and economic development: 1) Staff and Training; 2) Revolving Loan Funds; 3) Infrastructure for Business Development; and 3) Low- to Moderate-Income Housing Development. The original legislation via Senate Bill 235 implemented the following programs:

  1. The Economic Development Partnership Program, overseen by the Governor’s Office of Economic Development, has provided 44 awards totaling $4.5 million in matching grants to assist in funding equipment and training needs, new staff, elevating existing part-time staff, and commencing or replenishing local revolving loan funds for the purpose of developing or expanding local and community economic development programs.
  2. The Local Infrastructure Improvement Program, overseen by the Governor’s Office of Economic Development, has provided 22 grants totaling $5.6 million to assist in funding the construction or reconstruction of infrastructure for the purpose of serving economic development projects.
  3. The South Dakota Housing Opportunity Fund, overseen by the South Dakota Housing Development Authority. The program has provided 69 awards totaling $9.2 million and is promoting 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. Housing opportunity 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.
  4. Other programs included in the legislation for companies pursuing new or expanded facilities with a total project cost of less than $20 million or equipment upgrades with a total project cost of less than $2 million, include:
    1. Reinvestment Payment Program: Project owners receive a reinvestment payment to offset upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota. The reinvestment payment may not exceed the South Dakota sales and use tax paid on project costs.
    2. South Dakota Jobs Grant Program: Project owners receive grants to assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota.

Updates @ Dakota Resources

We grant permission to any development organization to repost and/or reuse any article contained in our blog for educational and marketing purposes.

 

Registration is Open for RuralX17

Get Your Tickets Early!

Registration is now open for RuralX17! Early bird pricing is available until June 23, so be sure to take advantage of...

Rural Communities Strengthened, Connected by Rural Finance Development

In April, more than 20 rural economic development groups gathered in Harrisburg, South Dakota, for the “Upper Great Plains Rural Finance Gathering.” The members...

DAKOTAS AMERICA HOSTED RURAL FINANCE GATHERING

Federal community development funding, as measured as a share of GDP, has declined by 75 percent over the least 40 years. Federal policy has...