EAST CREEK VILLAGE

Affordable / Workforce Housing Development

RAPID CITY, SD: RURAL HABITAT AFFILIATE'S JOURNEY TO $3 MILLION

East Creek Village is a mixed income affordable homeownership opportunity for more than forty families at corner of East St. Charles and Creek Drive in Rapid City, SD. It offers an affordable in-fill townhome concept that bridges housing density with ownership and quality of life, while leveraging existing infrastructure of city.

Owner occupied housing creating more stability in the neighborhood
Close in proximity to existing amenities i.e., grocery store, restaurants, bike path, softball fields, public transit, employment opportunities
City infrastructure in place to support housing units
A more transitional/dense housing configuration with drive under/drive along garages
5% ADA units
All units aging in place designed (first floor bedroom/bath, or pre-fit with elevator shaft)

TIMELINE

October 2021 – General site concept

November 2021 – Architecture design contract signed

December 2021 – First Version with 22’ road and no ROW

March 2022 – Second version with 26’ road and no ROW

Discussions around need for long-term affordability and seeking city

June 2022 – 52’ Design with City Street ROW

Sept 2022 – Final site submitted with ROW

Sept 2022 – Senator Rounds sends team to Rapid City to review site and plans

Oct 2022 – Planning meeting rejecting design and requiring redesign with conditions:

One water meter and developer handle sub-metering
No city ROW @ 52’, now 74’
No City services to residents
Developer to handle Trash, Water (master meter with sub-metering paid by developer)
Snow removal and lighting and ongoing maintenance

April 2023 – We submitted an FY24 Appropriations Request to Sen. Mike Rounds in the amount of $3,032,028 to help fund Phase 1 of a Black Hills Area Affordable Home Ownership and Workforce Development

March 2024 – We received notice of $3 million Congressional Direct Allocation sponsored by Sen. Mike Rounds to build an affordable/workforce housing development

August 2024 – Official Award letter from HUD

Current – Finalizing architectural design to obtain City approval and navigating final project documents and HUD requirements

Future – Expect this to be a 2–3-year project with follow-on Phase 2 and Phase 3

In 2021, we were awarded 1.2 million (10 percent of project cost) from the Dakota Charitable Foundation and received half for Phase I of the project. However, we were experiencing delays with City approvals and had to give the money back to the Foundation. Changes in Foundation leadership and direction might mean these funds are no longer available to us.

Each time the city rejected our plans, we lost valuable affordable housing space.

A challenge was working through TIF approvals with the City.

CHALLENGES ALONG THE WAY

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2

Each time the city rejected our plans, we lost valuable affordable housing space.

3

A challenge was working through TIF approvals with the City.

SOUTH DAKOTA IMPACT

This project will serve more than forty low to moderate income families through affordable homeownership in the Black Hills Area. It will increase economic impact in Black Hills communities and provide affordable homeownership opportunities for families working in the public service sector (teachers, medical staff, police officers, etc.) who struggle to find affordable housing in our communities and often opt to move out of South Dakota as a result. With our program, these essential community members will continue to live and work in the communities where they are drawn to invest their lives.

THE WHY

1 in 11 South Dakota households spend more than half of their income on housing

Increasing housing stock in any community involves multimillion dollar investment and unfortunately often high-capacity investors are interested in projects that provide high dollar long term return. Finding investors who understand that the long-term return of providing families with affordable homeownership comes in intangible, yet equally (or more) valuable ways is difficult in our current economic climate. As the Black Hills Area population grows the affordable housing crisis is growing with it. The number of rental units in the area is increasing but not in a way that is addressing the need for affordability. Rentals or temporary housing (as suggested by a local city planning official) will not help solve the affordability problem that is driving our public service workforce to look elsewhere to finds jobs that fit their housing needs without having to pay more than 30% of their income for a decent place to call home. Homeownership increases family stability and provides the opportunity for homeowners to generate wealth over time. Wealth that will be reinvested in the Black Hills Area and help to support and improve our communities for generations.

LEVERAGE: WHAT DID IT TAKE?

> 17 years of advocacy (City, State, Federal)

> Faith community connections

> Regional and state foundations

> Corporate relationships

> Grit, resilience, and dedication

> Faith, prayer, and gratitude

For questions on this project journey, contact Scott Engmann, Executive Director at scott@blackhillshabitat.org.