Dacotah Bank Partners with Grandview, LLC on Low-income Housing
Sioux Falls, SD – A recent market study reported a significant shortage of affordable housing in Rapid City and Box Elder, SD. In response to the data, Dacotah Bank and Grandview, LLC of Sioux Falls formed Northern Lights Limited Partnership. Ground breaking and construction of a 30-unit Low-income Housing Tax Credit (LIHTC) project launched the joint effort in Box Elder.
According to Jared Vilhauer, business banker with Dacotah Bank, “The number of families waiting for a unit managed by the county housing authority is growing. It has been reported that about 2,000 names are on the waiting list for government housing assistance vouchers.” Vilhauer referred to the study when he reported there is not a single government-subsidized until available in the Rapid City and Box Elder markets.
The housing partnership between Grandview, LLC and Dacotah Bank also includes rehabilitation of a 17-unit complex in Yankton. The Whiting Court apartments will be updated with newly renovated one and two bedroom units, kitchens with Energy Star appliances including refrigerator, range, dishwasher and microwave; air conditioning, deadbolt locks, a community room, laundry facilities, and 24-hour maintenance. Sewer, water, and garbage are paid by the landlord.
Costello Companies in Sioux Falls is providing the consulting services for both Northern Lights Apartments and Whiting Court Apartments. In addition, Costello Property Management will manage both complexes. Costello Construction, Inc., now known as BlackWing Elite Construction, Inc., is the General Contractor.
In the 1960s, Thomas P. Costello saw the need to provide subsidized housing. As HUD and then USDA Rural Development expanded, he worked with these agencies to provide income-qualified housing. When the Section 42 Low Income Housing Tax Credit Program (LIHTC) started in 1987, Thomas P’s sons, Dan and Tom III, were some of the first developers to build a community with this financing. Since then, they have developed over 75 LIHTC properties. The LIHTC program is widely accepted as the most successful government sponsored housing program ever established.
Dacotah Bank has a history of being engaged in the affordable housing space. In Aberdeen, Dacotah Bank and key lenders have been active in the Homes Are Possible, Inc. (HAPI Homes) organization. Since its founding in 1999, HAPI has helped over 350 families in northeast South Dakota purchase a home.
Dacotah Bank was recently recognized for facilitating a Federal Home Loan Bank (FHLB) housing grant program including $500,000 for the Sisseton Wahpeton Housing Authority and $480,000 for the Dakota Nation Housing Development Corporation.
For over 40 years, Costello Companies has provided affordable and well-maintained apartments and townhomes. The company provides housing opportunities that foster and support attractive, affordable, and well-designed housing. The result of the firm’s initiatives gives residents a sense of community and enhances the town or city’s quality of life.
More information about Costello Companies is available at costelloco.com.