Latest news with #SouthDakotaHousingDevelopmentAuthority
Yahoo
14-05-2025
- Business
- Yahoo
Board approves price increases for inmate-built affordable housing program
A home produced by the South Dakota Governor's House program. (Courtesy of South Dakota Housing Development Authority) The price of homes built by South Dakota inmates and sold to income-eligible residents across the state will increase again this year. The South Dakota Housing Development Authority Board voted unanimously Tuesday in Pierre to increase the prices for Governor's Houses, which are constructed at Mike Durfee State Prison in Springfield and shipped across the state to eligible buyers. There are two- and three-bedroom homes, as well as multi-family 'DakotaPlex' options for towns with 5,000 people or fewer, and day care models. Homebuyers can purchase a Governor's House if they have an income of $71,540 or less for a one- or two-person household, or $81,760 for households of three or more. Developers can buy and place the homes, as well, if they're later sold to people who fall within the income guidelines. Buyers are responsible for finding a lot, getting a building permit, buying appliances, laying flooring and hooking up utilities. Prices have crept up since 2020, when a buyer could get a two-bedroom Governor's House for $50,200. Most of this year's increases align with the program's income limit increase, said Mike Harsma, who heads the Governor's House program for South Dakota Housing. The income limits were raised by just over 10%. On July 1, the start of the 2025 fiscal year, the homes will be priced as follows: Two bedroom: $86,000, up from $75,900, or a 13.3% increase. Three bedroom: $96,000, up from $89,900, or a 6.8% increase. Dakotaplex two bedroom: $97,000, up from $89,900, or a 7.9% increase. Dakotaplex three bedroom: $106,000, up from $99,900, or a 6.1% increase. Day care: $96,000, up from $89,900, or a 6.8% increase. The increasing cost of materials continues to contribute to home prices, Harsma added. Harsma told the board that the authority is on track to sell about 120 units this fiscal year, selling 91 through the end of April – most of which were three-bedroom units. The authority typically sells less than five two-bedroom units a year, said Executive Director Chas Olson. A 'handful' of the program's 58 building pads in Springfield can only accommodate two-bedroom homes, which is part of the reason the authority continues to build and sell homes despite their low interest. Most of the two-bedroom sales are sold as elderly housing, Olson said. 'So we want to still kind of have that option open, but we've certainly talked at length about the possibility of cutting that two-bedroom unit,' Olson said. Harsma also hopes to see an improved lead time. Between 2022 and 2024, it took three years to complete and deliver an order. Harsma told board members the program lowered its lead time to 18 months this winter and 'we're hoping to lower it again as we get further into the summer.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
14-05-2025
- Business
- Yahoo
Prices rise for prison-built Governor's House units
PIERRE, S.D. (KELO) — It's going to cost more to buy one of the housing or daycare units that inmates build at Mike Durfee State Prison in Springfield. The South Dakota Housing Development Authority board on Tuesday voted to raise prices for the various buildings offered for sale through the Governor's House program. A two-bedroom home will rise from the current $75,900 to $86,000, while a three-bedroom model will increase from the current $89,900 to $96,000. Daycare units will likewise rise to $96,000. Buyers are responsible for providing the lots, foundations, appliances and utility connections. The Governor's House program also offers DakotaPlex rental units that are sold to communities with populations under 5,000. Two-bedroom complexes that currently cost $89,900 will rise to $97,000, while three-bedroom complexes that now cost $99,900 will increase to $107,000. Then-Gov. Bill Janklow started the program in 1995 as a way to make more affordable housing available for seniors, low- to medium-income households and people with disabilities. Since then, more than 3,300 units have been sold. Because the buildings are constructed at the Springfield prison, the wait time has been as long as two years. According to Mike Harsma, who oversees the program, that's now down to 18 months and the hope is to further reduce it. One change is that lunch is now served on site, reducing the downtime each day to an hour or so. Having inmates leave for lunch break and return took an hour and a half many days. 'Fifteen minutes when you're talking about 150 employees makes a difference,' Harsma told the board. During the first 10 months of the current state fiscal year, there have been 91 sales. The production target for the full year is 120. 'That's pretty much right on track where we were two years ago,' Harsma said. Of those sold this year, three-bedroom models were by far chosen the most, Harsma said. A chart showed sales of 40 normal-lot three-bedrooms and 24 narrow-lot three-bedroom units, compared to five of the two-bedroom models and 22 DakotaPlex rental units. A board member wondered Tuesday whether it's worth continuing to offer the two-bedroom house. The authority's executive director, Chas Olson, said Springfield prison has 58 building pads and a handful of them are designed specifically for the two-bedroom model. 'We certainly have talked extensively about cutting the two-bedroom unit,' Olson said. He explained that many buyers decide they prefer having the extra space of a three-bedroom for the relatively affordable additional cost. Olson told KELOLAND News afterward that the new prices take effect immediately for all new purchases. He added, 'However, if our sales reps have been working with customers previously they will have until Friday to lock in the old price.' At A Glance: Governor's House program sales 2024 – 66 houses, 8 DakotaPlex 2023 – 83 houses, 44 DakotaPlex 2022 – 140 houses, 18 DakotaPlex 2021 – 160 houses, 12 DakotaPlex 2020 – 109 houses, 5 DakotaPlex 2019 – 102 houses, 3 DakotaPlex 2018 – 95 houses 2017 – 94 houses 2016 – 118 houses 2015 – 160 houses 2014 — 103 houses Source: South Dakota Housing Development Authority Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
