Single-Family Rehabilitation Program

This program provides financial assistance to low- and moderate-income homeowners to maintain their properties in a decent, safe, and sanitary condition.

What are the household eligibility requirements?

  • Gross household income must not exceed  80 percent of the median family income. This is defined as income of all household members from all sources before taxes and withholding. Child support is included in this calculation.
  • The household must own the property and have occupied it for a minimum of one year. Applicants must have the property’s deed in their name to be considered the owner. Applicants purchasing a property through a Contract for Deed are not eligible for assistance.
  • Mortgage payments, taxes, and insurance must be current.
  • If any assets have been assigned, transferred, or conveyed, the applicant will be ineligible to apply for assistance for a period of two years.
  • Applicant's previous regard for financial obligations will be strongly considered.

What are the property eligibility requirements?

  • The property must be located within the city limits of Sioux Falls.
  • The property must be structurally sound, but in need of repairs to make it safe and sanitary.
  • Existing debt on the property plus amount of necessary repairs should not exceed 110 percent of the assessed or appraised value.
  • Mobile homes are not eligible under this program.
  • Properties to be repaired for resale are not eligible under this program.
  • Properties constructed prior to 1978 must pass a lead hazard screen. Any house failing the lead hazard screen will require a risk assessment to determine a lead hazard reduction plan.

What is the maximum amount of assistance?

  • The loan amount is based on housing rehabilitation needs, income, assessed value of the property, and equity.

What are the terms of the loan?

  • Loans terms vary depending upon income.
  • Household income no greater than 60% of median family income:
    • Assistance is provided as a deferred payment loan due upon sale or discontinuance of occupancy. The deferred loan is without interest.
  • Household income 60-80% of median family income:
    • Assistance is provided as a monthly repayment loan with two percent interest.

What encumbrances will be placed on my property?

  • A signed mortgage will be recorded against the property until satisfied.

What work is eligible?

  • Repair or replace faulty plumbing.
  • Repair or replace faulty heating system.
  • Repair or replace faulty electrical.
  • Repair or replace worn or leaking roof.
  • Repair or replace storm and screen windows and doors.
  • Repair or replace deteriorated stoops and stairs.
  • Necessary painting.
  • Insulation and winterization.
  • Handicapped accessibility.

What is involved?

  • Property owners who request financial assistance for rehabilitation work will be provided with technical assistance as needed.
  • Applicants must allow a complete inspection of the property by a Community Development staff member. A work write-up containing the description of the repairs to be financed by the program will be prepared by Community Development. It will be the responsibility of the homeowner to solicit bids from area contractors. After soliciting bids, the homeowner will select the contractor for the project and sign a mortgage with Community Development to secure funding. Community Development will provide a loan in the amount of the lowest bid. No changes to the project will be made after the mortgage has been signed.
  • It should be noted that until you sign the contract and mortgage, you are under no legal obligation.

How do I apply for assistance?

  • Check income limits to see if you might qualify for the program.
  • Call the Community Development Office.