22-03-2025
First Governor's House arrives at South Lake Estates housing developments
Mar. 21—MITCHELL — Terry Sabers had good reason to smile Thursday morning. It was the first day of spring, and clear skies and mild temperatures were giving notice that summer is approaching. It was also his birthday, and he quietly acknowledged that it was number 70 for him.
But coming over the hill at the South Lake Estates housing development by Lake Mitchell was a flatbed semi truck hauling a brand new Governor's House to be set on a concrete foundation. It was a first for the development, and a step Sabers, president of Mitchell Area Housing, Inc., had been looking forward to for some time.
"It's exciting, it really is, to get the first one in here," Sabers told the Mitchell Republic as a crew worked to line up the trailer to offload the house. "And then we've got another basement over there and in two weeks, we'll have another one coming."
The Governor's House program works to offer affordably priced, energy-efficient and high-quality homes for South Dakotans. The hallmark program of the South Dakota Housing nonprofit, which itself was created by the South Dakota Legislature in 1973, the Governor's House offers low-maintenance dwelling options that are attractive, reasonably sized and budget-friendly for those who are income-qualified.
Over 3,300 Governor's Houses have been sold since 1996, according to information on the South Dakota Housing website.
The delivery of the house to South Lake was the latest step in MAHI's efforts to help alleviate a housing shortage in the Mitchell community, a process that the nonprofit has been working on for the last three years. The group has two new housing developments taking shape in Mitchell — the South Lake Estates project as well as the
Ridgeview on Foster development near Avera Queen of Peace Hospital.
Officials with the Mitchell Area Development Corporation and MAHI have been trumpeting the need for more housing — particularly affordable housing — in Mitchell for years. With major employers like Avera Health and Trail King on the lookout for new workers, as well as the new soybean processing plant on the way, the Mitchell community needs places for those workers to call home so they can work, live and contribute to that economy.
Governor's Houses, built by inmates at the Mike Durfee State Prison in Springfield through a partnership with the South Dakota Department of Corrections, are a great option to entice young employees and families to locate to Mitchell, Sabers said.
"Because they are a very efficient home and a very nice-looking home. And it takes that construction process from four months down to three weeks," Sabers said. "And the price? Basically, the inmates are building it, so you save on labor."
There are qualifying factors for those who wish to purchase a Governor's House. Basic qualifications include the purchaser making $66,570 or less in a one or two-person household or $76,080 or less in a household of three or more; having a net worth of less than $125,000 — or $105,000 in liquid assets — for applicants 61 or younger and having a net worth of less than $250,000 — or $140,000 in liquid assets — for applicants age 62 or older.
The home must be considered the purchaser's only residence and it must be placed in South Dakota. Prices for Governor's Houses vary depending on floor plan and style, but they generally start at around $79,000 and top out at approximately $99,900.
The home that arrived Thursday comes in at 1,200 square feet with three bedrooms and two bathrooms, and a full basement is expected to be installed. That will increase the liveable square footage and give new homeowners options as their families grow.
"And then there will be a full basement, so they can put two or three more bedrooms in the basement, depending on what they need," Sabers said. "And they can still have a nice big family room."
Sabers said MAHI is aiming for lot and home prices at the development to be in the $250,000 to $300,000 range.
Mike Lauritsen, CEO of the Mitchell Area Development Corporation and the Mitchell Chamber of Commerce, said the arrival of the first Governor's House is an important step forward in the work local organizations have been doing to bring not just more housing to Mitchell, but more affordable housing.
"To get a house that's really workforce housing and in their price range, a really great option is the Governor's House (program)," Lauritsen said. "(This) is part of the reason that we got the
Community of the Year Award.
We have the housing and we're doing creative things to recruit the workforce. We need housing to recruit that workforce."
Lauritsen said the progress made in recent years by MAHI with its two housing projects is indicative of a variety of positives in local development. Along with those projects, he pointed to the impending completion of the new soybean crush plant outside town that will bring new workers to town, and the new Mitchell High School under construction on Capital Street that will serve as an enticement for potential new residents, as indicators that Mitchell is on the rise.
Though no official figures were immediately available from the city, Lauritsen estimated that building permits last year were about double the average over recent years. He credited individuals like Sabers and the Mitchell Chamber's Geri Beck for having been crucial to adding to that momentum, he said.
"I feel like we have momentum from a multitude of things. We have the largest value-added economic development project in state history, a new high school building, housing developments and we're recruiting labor forces," Lauritsen said. "We have a lot of positive things happening in Mitchell right now. It's a great time to be in Mitchell."
The Governor's House delivered Thursday is the first for South Lake Estates, but it is not the first of its kind in Mitchell. That distinction goes
to a home sold in 2022,
which was placed at 1209 S. Duff in Mitchell.
Sabers estimated there were seven or eight Governor's Houses now in the community less than three years after the arrival of the first, an example that shows the demand for such dwellings. MAHI itself has 17 more Governor's Houses on order with the state, and Sabers estimated they likely would be moved in over the next three years.
"We have them on order as people are interested. I'm already talking to three or four more people about them," Sabers said.
Sabers said all major utility work at South Lake was completed in the fall of 2024. Final street grading along the curb and pavement work on Indian Head Drive is expected to commence in April or early May. That timeline is dependent on how the weather cooperates. The roadwork is crucial to being able to move forward, Sabers said, but hopefully MAHI will be able to start talking with potential buyers soon.
For the Ridgeview on Foster development, Sabers said initial utility work has been completed, and work on the parking lot and Nagle Lane is expected to begin in April or May. Utilities and street work are anticipated to be completed by mid to late summer of 2025.
The demand is only expected to continue. For those looking to locate to Mitchell to work, Sabers said MAHI will continue to work to find housing solutions.
"Later this summer, the bean plant, they're going to be hiring people. And when they're hiring people, they're going to be looking for more houses," Sabers said. "So hopefully by then we'll have five or six more going, and we'll see how quickly we can get them done."
