Single-Family Rehabilitation Program

The Single-Family Rehabilitation Program provides financial assistance to low- and moderate-income homeowners to maintain their properties in a decent, safe, and sanitary condition. This program is designed to help homeowners in Sioux Falls remain financially stable. There are great benefits to owning property in South Dakota and we want to make sure our residents have all the help they can get. Read here to learn more and see if you qualify for the program.

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?

  • Work started before signing the loan and/or grant documents will void your application.
  • Work completed prior to applying is not eligible.
  • 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.
  • Work completed prior to applying is not eligible.
  • 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?

Assistance is provided as a deferred payment loan due upon sale or discontinuance of occupancy. The deferred loan is without 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 Housing specialist PRIOR to any work being started. A work write-up containing the description of the repairs to be financed by the program will be prepared by a Housing Specialist before the project can proceed. 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 City of Sioux Falls to secure funding. City of Sioux Falls Housing Division 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.