HomeMy WebLinkAbout2022_02_15 CC PKTCity Council
City of Brookings
Meeting Agenda - Final
Brookings City Council
Brookings City & County
Government Center
520 3rd St., Suite 230
Brookings, SD 57006
Phone: (605) 692-6281
"We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability
and pursues a complete lifestyle. We are committed to building a bright future through dedication,
generosity and authenticity. Bring your dreams!"
Council Chambers5:30 PMTuesday, February 15, 2022
Study Session
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse
economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal
management.
5:30 PM STUDY SESSION
1. Call to Order / Pledge of Allegiance.
2. Record of Council Attendance.
3. Action to approve the agenda.
4. Open Forum.
At this time, any member of the public may request time on the agenda for an item not
listed or to make a brief announcement or invitation. Items will be scheduled at the end
of the meeting. Individuals are asked to state their name and address for the record.
5.ID 22-0077 Update: Workforce Housing Project (15th Street South and 7th Avenue
South)
Memo
SD Housing Opportunity Fund
Presentation
Attachments:
6.ID 22-0057 Presentation: Brookings City & County Government Center Bioretention
Area
Memo
Presentation
Attachments:
Page 1 City of Brookings
February 15, 2022City Council Meeting Agenda - Final
7.ID 22-0081 Discussion on the South Dakota State University Economic Impact Report.
Memo
SDSU FY 2019 Economic Impact
Board of Regents Economic Impact
SDSU Economic Impact Presentation
Attachments:
8. City Council member introduction of topics for future discussion.
Any Council Member may request discussion of any topic at a future meeting. Items
cannot be added for action at this meeting. A motion and second is required which
states the topic, requested outcome, and time frame. A majority vote is required.
9. Adjourn.
Brookings City Council: Oepke G.Niemeyer, Mayor; Nick Wendell, Deputy Mayor
Council Members Wayne Avery, Patty Bacon, Leah Brink, Joey Collins, Holly Tilton Byrne,
Brookings City Council Staff:
Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk
Public Comment is limited to a maximum of three minutes per person during the meeting. Individuals are asked to
give their name and address for the record. Public Comment may be submitted prior to the meeting: 1) Email
comments to the City Clerk (bfoster@cityofbrookings-sd.gov), 2) participate via Zoom, or 3) via eComment
(https://cityofbrookings.legistar.com/Calendar.aspx ). Those who provide comments in any manner should
understand their comments will become part of the official record and subject to review by all parties and the
public.
Meetings are broadcast live and recorded. Go to www.cityofbrookings-sd.gov for more information. Government
Channel 9 Rebroadcast Schedule: Wednesday 1:00 pm / Thursday 7:00 pm / Friday 9:00 pm / Saturday 1:00 pm
Upon request, accommodations for meetings will be provided for persons with disabilities. Please contact Susan
Rotert, City Human Resources Director and ADA Coordinator at (605) 692-6281 at least three (3) business days in
advance of the meeting.
Page 2 City of Brookings
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 22-0077,Version:1
Update: Workforce Housing Project (15th Street South and 7th Avenue South)
Summary:
An update will be provided on the Workforce Housing Project located on 15th Street South and 7th
Avenue South. The developer is proposing to utilize the South Dakota Housing Opportunity Fund.
Attachments:
Memo
SD Housing Opportunity Fund
Presentation
City of Brookings Printed on 2/10/2022Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Mike Struck, Community Development Director
Council Meeting: February 15, 2022
Subject: Workforce Housing Project (15th Street South and 7th
Avenue South)
Presenter: Mike Struck, Community Development Director
Summary:
Update on the Workforce Housing Project located on 15th Street South and 7th Avenue
South. The developer is proposing to utilize the South Dakota Housing Opportunity
Fund.
Background:
The City of Brookings acquired approximately 8 acres of property in the D & D Addition
for drainage improvements and future street improvements of 15th Street South and 7th
Avenue South. A small 2.3 acre parcel is not needed to complete the public
improvements and the City identified an opportunity of expanding housing opportunities
in this area.
The City initiated a comprehensive process of Letters of Interest, Request for
Qualifications, and Request for Proposals to develop workforce housing on the 2.3 acre
site. During the subsequent submittal, review, and interview process, Clark Drew
Construction’s proposal was selected to move forward with a workforce housing project.
In summer of 2021, the City began construction on the drainage improvements, water,
and sanitary sewer improvements for the future streets of 15th Street South and 7th
Avenue South. These infrastructure improvements are necessary for the workforce
housing project to move forward. A tax increment financing district was created to
assist the City with recovering the costs associated with the public improvements.
In the interim, the developer has been working with the South Dakota Housing
Development Authority on funding opportunities and is ready to proceed with an
application for funding assistance from the South Dakota Housing Opportunity Fund.
The Housing Opportunity Fund is a competitive application process whereby the
applicant is awarded points based upon selected criteria.
Item Details:
The developer proposed a shovel-ready site and the City covered the soft costs of the
project to minimize the developer’s risk, while maintaining the proposed price points
allowed by the South Dakota Housing Opportunity Fund. The land acquisition was
originally budgeted at $322,000 and if the City subsidizes the soft costs, the net revenue
to the City would be approximately $115,000. Soil borings have been completed on the
site and provided to the developer for review. The excess material from the drainage
improvements is accounted for with another project and preliminary estimates indicate
engineered fill suitable for building upon could increase the 15th Street South/7th Avenue
South project costs by $100,000.
A purchase agreement, developer’s agreement or combination thereof will need to be
drafted, based upon the City Council direction.
Legal Consideration:
City Staff and City Attorney Steve Britzman will work on the appropriate documents
based upon City Council direction.
Strategic Plan Consideration:
The Workforce Housing Project is consistent with the City Council Strategic Plan,
specifically with item #2 providing a Safe, Inclusive, Connected Community and #5
Economic Growth by providing workforce housing opportunities meeting the needs of
our business and industry’s labor force.
Financial Consideration:
Not applicable.
Options and Recommendation:
This is for informational purposes only; however, staff will need to prepare the
appropriate documents to bring forward to a future City Council meeting for action.
Supporting Documentation:
SD Housing Opportunity Fund
Presentation
HOF Plan
2020-2021
HOF Allocation Plan
As Presented to the SDHDA Board of Commissioners
April 21, 2020
Based on Comments Received by
5:00 P.M. CST, April 8, 2020
Applications Due:
August 31, 2020; July 31, 2021
5:00 p.m. Central Time
3060 E. Elizabeth Street
P.O. Box 1237
Pierre, SD 57501-1237
(605) 773-3181
FAX (605) 773-5154
www.sdhda.org
HOF Plan
Alternative formats of this document are available to persons with disabilities upon request. For information
regarding Section 504 Accessibility, contact the South Dakota Housing Development Authority 504
Coordinator, Andy Fuhrman, at 1-800-540-4241.
HOF Plan
April 2020 1 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
TABLE OF CONTENTS
I. PURPOSE.......................................................................................................................... 4
II. POLICIES AND PROCEDURES ........................................................................................ 4
A. THE PLAN ..................................................................................................................... 4
1. Distribution of Funds .................................................................................................................... 4
2. Application Cycle(s) and Deadlines ............................................................................................. 4
3. Limitations .................................................................................................................................... 5
4. Types of Financing ...................................................................................................................... 5
5. Term of Financing ........................................................................................................................ 5
6. Leveraging/Match Requirement................................................................................................... 5
7. Eligibility ....................................................................................................................................... 6
8. Disclaimers .................................................................................................................................. 6
B. AMENDMENTS TO THE PLAN ..................................................................................... 7
III. GENERAL REQUIREMENTS ............................................................................................ 7
A. ELIGIBLE ACTIVITIES .................................................................................................. 7
1. Rental Housing ............................................................................................................................ 7
2. Homeownership ........................................................................................................................... 8
B. ELIGIBLE PROGRAMS ................................................................................................10
1. Homebuyer Assistance .............................................................................................................. 10
2. Homeowner Rehabilitation ......................................................................................................... 10
3. Homelessness Prevention ......................................................................................................... 10
C. PERIOD OF AFFORDABILITY .....................................................................................11
D. TENANT RELOCATION AND DISPLACEMENT ..........................................................11
E. GUARANTEES .............................................................................................................11
IV. FUNDING PROCESS .......................................................................................................12
A. APPLICATION STAGE .................................................................................................12
1. Project Finance Limits ............................................................................................................... 12
2. Financial Feasibility ................................................................................................................... 14
3. Reserve Accounts ...................................................................................................................... 14
4. Determination of HOF Amount .................................................................................................. 14
B. CONDITIONAL COMMITMENT STAGE .......................................................................15
C. DISBURSEMENT OF HOF FUNDS ..............................................................................15
1. Loan Documentation .................................................................................................................. 15
2. Program/Construction Start ....................................................................................................... 15
3. Draws ......................................................................................................................................... 16
4. Cost Certification ....................................................................................................................... 16
5. Loan Repayment ....................................................................................................................... 16
6. Recapture of HOF Funds ........................................................................................................... 16
V. PROJECT SELECTION CRITERIA FOR HOUSING DEVELOPMENT .............................16
A. LOCAL HOUSING NEED (MAXIMUM 100 POINTS) ....................................................17
B. INCOME TARGETING (MAXIMUM 100 POINTS).........................................................17
HOF Plan
April 2020 2 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
C. EXTENDED USE COMMITMENT (MAXIMUM 10 POINTS) ..........................................17
D. SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS) ..................................17
E. SERVICE ENRICHED HOUSING (MAXIMUM 20 POINTS) ..........................................17
F. PERCENTAGE OF SOFT COSTS USED FOR PROJECT COSTS (MAXIMUM 40
POINTS) ...............................................................................................................................18
G. READINESS TO PROCEED CRITERIA .......................................................................19
1. Plans and Specifications (Maximum 25 Points) ........................................................................ 19
2. Site Control (Maximum 25 Points) ............................................................................................. 19
3. Construction Financing (Maximum 30 Points) ........................................................................... 19
4. Permanent Financing (Maximum 30 Points) ............................................................................. 19
5. Zoning (Maximum 10 Points) ..................................................................................................... 20
6. Platting (Maximum 10 Points) .................................................................................................... 20
H. PROJECT CHARACTERISTICS (MAXIMUM 200 POINTS) .........................................20
I. FINANCING TYPE (MAXIMUM 25 POINTS) .................................................................20
VI. PROJECT SELECTION CRITERIA FOR PROGRAMS ....................................................20
A. PROGRAM DEMAND (MAXIMUM 100 POINTS) .........................................................20
B. INCOME TARGETING (MAXIMUM 100 POINTS).........................................................21
C. EXTENDED USE COMMITMENT (MAXIMUM 10 POINTS) ..........................................21
D. FINANCIAL SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS) ..............21
E. PROGRAM POLICY AND PROCEDURE MANUAL (MAXIMUM 30 POINTS) .............21
F. OTHER PROGRAM FUNDS (MAXIMUM 30 POINTS) .................................................21
G. FINANCING TYPE (MAXIMUM 25 POINTS) .................................................................22
H. PARTNERING WITH OTHER AGENCIES (MAXIMUM 30 POINTS) ............................22
VII. OTHER REQUIREMENTS ................................................................................................22
A. FAIR HOUSING AND EQUAL OPPORTUNITY ............................................................22
B. LEAD-BASED PAINT ...................................................................................................22
C. CONFLICTS OF INTEREST .........................................................................................22
D. DEBAREMENT AND SUSPENSION ............................................................................23
E. HISTORIC PROPERTIES .............................................................................................23
F. FLOOD INSURANCE ....................................................................................................23
VIII. MONITORING FOR COMPLIANCE ..................................................................................23
IX. DEFINITIONS ...................................................................................................................23
EXHIBITS
1. Required Submissions for Complete Application
2. Local Housing Need Requirements
3. Application Checklist
4. Project Characteristics
5. Self-Scoring Worksheet
6. Construction Standards
HOF Plan
April 2020 3 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
7. Homebuyer Assistance
8. Homeowner Rehabilitation
9. Homelessness Prevention
HOF Plan
April 2020 4 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
SOUTH DAKOTA HOUSING OPPORTUNITY FUND 2020-2021 ALLOCATION PLAN
I. PURPOSE
The South Dakota Housing Opportunity Fund (HOF) is designed to promote economic
development in South Dakota by expanding the supply of decent, safe, sanitary and affordable
housing targeted to low and moderate income families and individuals in South Dakota.
II. POLICIES AND PROCEDURES
A. THE PLAN
South Dakota Housing Development Authority (SDHDA) and the SDHDA Board of
Commissioners (SDHDA Board) are responsible for the administration of HOF in accordance with
SDCL 11-13. This Plan provides a system for allocation of HOF funds and HOF program income.
1. Distribution of Funds
SDHDA will distribute HOF funds geographically throughout the State taking into consideration
the following HOF distribution formula:
Municipalities with a population of
50,000 or more 30%
Other areas of the State 70%
Ten percent of the HOF funds may be utilized for administrative expenses incurred by SDHDA
and eligible Applicants applying for HOF for programs as outlined in Section III.B. The remaining
funds will be distributed per the eligible activity as follows:
• Housing Development 75 percent
• Programs 25 percent
If the approved applications for any area or activity are less than the percentages above, the
remaining amount may be made available for qualified applications from the other geographical
area or activity.
If less than one million dollars is appropriated for any single HOF Application Cycle, the Housing
Development and Program set asides will be eliminated and SDHDA may in its discretion limit
the eligible activities for which applications will be accepted.
2. Application Cycle(s) and Deadlines
Applications for housing development will be awarded on a first come, first serve basis with
applications accepted January 1st through May 31st for rental housing and homeownership
development. Applications accepted during this time frame, will follow the allocation plan
guidelines as of January 1st of the application year. Any changes to the allocation plan will take
effect during the August, 2020 application cycle, which is a competitive cycle with applications
due August 31st, 2020. Applications received will be scored in accordance with Section V of this
HOF Plan
April 2020 5 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
plan to ensure feasible and desirable projects are awarded funds. Housing development projects
must score a minimum of 300 points to be considered for funding.
Applications for Programs will be accepted annually, with 2020 applications due August 31st
2020, and 2021 applications due July 31st, 2021. Applications received will be scored in
accordance with Section V of this plan to ensure feasible and desirable projects are awarded
funds. Program applications must score a minimum of 100 points to be considered for funding.
However, if after the August 2020 / July 2021 application cycle, HOF funds remain unallocated or
additional HOF funds become available, SDHDA may hold another application cycle or accept
eligible applications on a first-come, first-serve basis. If SDHDA holds another application cycle
(instead of accepting applications on a first-come, first-serve basis), SDHDA will provide an
announcement of the additional cycle. Please refer to SDHDA’s website at www.sdhda.org for
availability of funds.
Applicants are encouraged to submit the online application that can be found on the SDHDA
website. Completed applications (refer to Exhibit 1) must be electronically submitted or delivered
(via U.S. Postal Service, private mailing service, or hand delivered) to SDHDA by 5:00 p.m.
Central Time on the applicable due date. Applications via facsimile will NOT be accepted.
3. Limitations
Taking into consideration the eligible activities for HOF, those being housing development and
programs, no more than 25 percent of the annual available HOF funds may be awarded to any
one developer/sponsor/owner and no more than 50 percent of a development’s total project costs
or program budget can be financed by HOF, unless a waiver is granted by SDHDA Board of
Commissioners. For calculation of the developer/sponsor/owner limitation, all of the
developer/sponsor/owner’s applications, regardless of type of activity or project, will be combined
for the calculation.
4. Types of Financing
HOF funds may be requested as a loan or as a forgivable loan. HOF funds may also be used as
a guaranty for other funding sources. If applicants are requesting HOF funds as a forgivable loan,
the applicant must demonstrate the need for the funds as a forgivable loan and provide program
parameters that will be used to determine if program recipients will be receiving a forgivable loan.
Consideration must be given to the AMI being served.
5. Term of Financing
HOF funds must be expended and disbursed within two years of the date of the Conditional Loan
Commitment or the Subrecipient Written Agreement. Any HOF funds not disbursed by the due
date may be de-obligated by SDHDA and returned to the available HOF allocation for the next
application cycle.
6. Leveraging/Match Requirement
HOF funds can be used to finance up to 50 percent of the project or program costs, with the
remaining 50 percent being leveraged funds (or match). The leveraging of funds can be satisfied
in a variety of ways such as funds provided as a loan or grant, donations (monetary or in-kind),
administrative costs paid for by other funding sources for staff carrying out the program activities,
etc. Funds used for leverage must be for like-kind of services and must be necessary for the
HOF Plan
April 2020 6 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
administration of the program or development of the project. For example, an agency may use
the staff expense (paid for from sources other than HOF) for qualifying homebuyers’ eligibility and
providing homebuyer counseling, as leveraging for a downpayment assistance program since the
qualification process and homebuyer counseling are necessary for administration of a
downpayment assistance program. An agency however, may not use staff expense for
homebuyer counseling as leveraging for a homeowner rehabilitation program.
Sources of leverage must be identified within the application and documentation of such will be
required prior to closing of the loan and disbursement of HOF funds.
If applicants are unable to meet the requirement of 50 percent leveraged funds (match) applicants
may request a waiver from the SDHDA Board of Commissioners. Thorough documentation of the
reason for the waiver will be required at time of application.
If HOF is utilized with another funding source or program offered by a city, the state, a federal, or
SDHDA program, Applicant will be required to follow the most restrictive requirements.
7. Eligibility
Eligible Projects. HOF funds may be used for new construction, acquisition and rehabilitation of
rental housing, the purchase of homeownership housing, substantial or moderate rehabilitation of
rental or homeownership housing, housing preservation, including home repair and rehabilitating
homes to make them accessible to individuals with disabilities, homelessness prevention
activities, and community land trusts. Housing developments receiving HOF funds will not be
considered as an eligible project until such time the initial affordability period or the extended use
period has been met.
Eligible Applicants. Any for-profit entity, nonprofit entity, tribal government, housing authority,
political subdivision of this state or agency of such subdivision, or agency of this state is eligible
to apply for funding. No individuals may apply for funding directly unless authorized by SDHDA.
Eligible Households. HOF funds shall be targeted to serve low to moderate income households
with a maximum income at or below one hundred fifteen percent (115%) of the county area median
income (AMI) based on the U.S. Department of Housing and Urban Development (HUD) criteria.
8. Disclaimers
Regardless of ranking under the project selection criteria, SDHDA reserves the right to allocate
HOF funds to any application if SDHDA determines in its sole discretion that such allocation
furthers the HOF objectives. SDHDA reserves the right to deny HOF funds for any application that
SDHDA determines in its sole discretion does not further the HOF objectives.
With respect to housing development projects, SDHDA assumes no responsibility to make
inspections during construction and/or rehabilitation and assumes no liability for construction
quality or code compliance. SDHDA may do periodic on-site inspections to review the scope and
progress of the project. The local building official will be required to approve both the proposed
project and completed work.
SDHDA reserves the right to exchange information with other city, state and federal agencies and
with other parties as deemed appropriate. By submitting an application for HOF funds, the
Applicant is acknowledging and agreeing to this exchange of information.
HOF Plan
April 2020 7 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
B. AMENDMENTS TO THE PLAN
This Plan may be amended for substantive changes by SDHDA at any time following public notice
and public meeting. This Plan may be amended by SDHDA for non-substantive changes,
including to comply with state law, clarify matters, or cure ambiguities, at any time, and such
amendments will be fully effective and incorporated herein upon the SDHDA Board’s adoption of
such amendments, without public notice and comment.
III. GENERAL REQUIREMENTS
A. ELIGIBLE ACTIVITIES
Activities allowed under HOF include:
1. Rental Housing
New construction, acquisition, rehabilitation, or conversion of a building for rental housing
(permanent or transitional) are eligible activities.
Eligible costs include land and/or building acquisition, rehabilitation, demolition of existing
structures, improvements to the project site that are comparable with the surrounding projects,
and utility connections including off-site connections from the property line to the adjacent street.
Improvements to the project site may include on-site roads and sewer and water lines necessary
to the development of the project. The project site consists only of that property owned by the
project owner and upon which the project is located. The development must meet the applicable
local and state building codes and acquisition costs cannot exceed the appraised market value of
the property.
Housing provided for homelessness prevention will be considered as housing development. HOF
may be requested for new construction, acquisition, and/or rehabilitation of a shelter or transitional
housing.
Additional requirements for new construction and rehabilitation/conversion activities can be found
in Exhibit 6.
a. Occupancy Requirements
During the affordability period, the HOF assisted rental housing units must be set aside for
households at or below 115 percent Area Median Income (AMI) or further restricted to the AMI
indicated in the application. The required AMI test must be met at initial occupancy and data
evidencing compliance must be reported to SDHDA annually (Owner’s Certification). When HOF
units become available for rent, the new household must also meet the occupancy requirements.
For purposes of meeting affordable housing requirements for a project, the dwelling units
specified as affordable housing may be changed over the affordability period, so long as the total
number of affordable housing units remains the same, and the substituted units are, at a minimum,
comparable in terms of size, features, and number of bedrooms to the originally designated
affordable housing units.
HOF Plan
April 2020 8 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
b. HOF Rents
Every HOF assisted rental unit is subject to rent limitations (HOF Rents) designed to ensure that
rents are affordable to the respective tenants being served. HOF Rents cannot exceed the
calculated rent of 30 percent of the adjusted income for the AMI being served by the proposed
project, based on bedroom size.
Rents must include allowances for utilities and services (excluding telephone, cable, and internet).
Applicants are encouraged to utilize the allowances established by the local Public Housing
Authority or calculate their own allowances based on documentation from service providers.
c. Subsequent Rent Schedule, Utility Allowances, and Rent Adjustments
SDHDA has the right to review all rent schedules and utility allowances. Owners are allowed to
annually increase rents on HOF assisted units by two percent. Rent increases above two percent
are required to have SDHDA approval prior to implementation.
d. Mixed Income Project
All HOF funds used in conjunction with a mixed-income project must be used solely for the benefit
of the affordable units in the project. Each building in a project must include affordable units.
Common area costs will be prorated between the number of affordable units and the number of
other units.
e. Mixed Use Project
A building that is designed in part for other than residential housing may qualify as affordable
housing under the HOF program if such housing meets the rent limitations in the Occupancy
Requirements and HOF Rents sections. The laundry or community facilities that a project contains
for the exclusive use of the project residents and their guests are considered residential use. Costs
for common areas shared by both residential and commercial tenants will be prorated. Each
building in a project must contain residential living space.
Commercial buildings that are rehabilitated for rental use, are eligible for funding under the HOF
Program. Adequate off-street parking must be provided.
f. Public Housing Notification
At the time of application, all Applicants proposing the use of HOF funds for rental housing must
notify local public housing agencies of the proposed project.
g. Tenant Certifications
Tenant eligibility must be determined by the owner at the time of initial occupancy. Annual re-
certifications of existing tenants will not be required; however, new HOF tenants will require
certification to ensure occupancy requirements are being maintained.
h. Tenant Protections
The lease between a tenant and the owner of rental housing assisted with HOF funds must be for
at least one year, unless by mutual consent the tenant and the owner agree to a shorter term,
and may not contain any prohibited lease terms as established by SDHDA. Tenant selection and
termination of any tenancy are also subject to SDHDA standards and requirements.
2. Homeownership
Funds may be used for new construction, or acquisition with rehabilitation of single family housing
units. Funds may also be used for the development of affordable lots in housing subdivisions if
HOF Plan
April 2020 9 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
construction of single family housing units will begin within 12 months of land purchase. The
Applicant will have six months from the date of the Conditional Loan Commitment to begin
construction on the proposed project. Land banking - the acquisition and holding of land for future
use - is prohibited.
Eligible costs include land and/or building acquisition with rehabilitation, demolition of existing
structures, improvements to the project site that are comparable with the surrounding projects,
and utility connections including off-site connections from the property line to the adjacent street.
Improvements to the project site may include on-site roads and sewer and water lines necessary
to the development of the project. The project site consists only of that property owned by the
project owner and upon which the project is located. The development must meet the applicable
local and state building codes, and acquisition costs cannot, without prior SDHDA approval,
exceed the appraised market value of the property.
Funds may also be used to provide development subsidy to homeownership projects which have
appraisal gaps. Appraisal gap is defined as the difference between the cost to develop a unit and
the appraised value of said unit. Projects utilizing HOF development subsidy must adhere to the
HOF project cost limits listed in Section IV.A.1. of this plan. The maximum amount of subsidy per
unit is $20,000. Any HOF unit utilizing development subsidy must remain affordable to low-income
homebuyers for a 10-year period of affordability. SDHDA will place a covenant on the property to
ensure the period of affordability is met. If the property is sold during the period of affordability the
seller will receive a “fair return on investment” which includes any capital investment made by the
homeowner and seventy-five percent (75%) of net sale proceeds minus capital investment.
SDHDA will receive the remaining twenty-five percent (25%) up to the amount of development
subsidy provided.
Additional requirements for construction standards and requirements can be found in Exhibit 6.
a. Homebuyer Qualifications
The homebuyer must utilize the HOF assisted residence as his or her principal residence.
All homebuyers on the mortgage must participate in homebuyer education, and if warranted,
homebuyer counseling and credit counseling.
b. Selling Price
The selling price of the home shall not exceed the appraised value. For homebuyer activities
involving acquisition and rehabilitation, the estimated total cost of the acquisition and
rehabilitation, shall not exceed the appraised value.
Applicants are to carefully consider the AMI being targeted and develop housing accordingly.
SDHDA may reject proposals if the anticipated resale cost of the home is not reasonable for the
AMI being served. To help make this determination, the Applicant must consider the percentage
of the homebuyer’s income that can be used to pay the principal, interest, taxes, and insurance
(PITI). Typically, this is equivalent to PITI being 30 percent or less of the homebuyer's family
income.
c. Homebuyer Recapture Guidelines
If the initial homebuyer sells the HOF financed home prior to the end of the affordability period as
defined in Section III.C., SDHDA will recapture the lesser of the SDHDA calculated amount or net
HOF Plan
April 2020 10 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
sale proceeds. Net proceeds of a sale are the sales price minus non-HOF loan repayments for
prior lien mortgages and any closing costs.
The SDHDA calculated amount will be determined by either the program parameters as
established by the Applicant, or no less than the current HOF balance. HOF provided as a
forgivable loan can be forgiven on an annual basis as the household meets program
requirements, based on no less than a 60-month term.
d. Lease-Purchase
Applicants may provide homeownership through a lease-purchase housing option. The
homebuyer must purchase the housing within 36 months of signing the lease-purchase agreement.
If at the end of the 36-month period, the household occupying the lease-purchase unit is not
eligible or able to purchase the unit, SDHDA may allow an additional six months to identify an
eligible homebuyer to purchase the unit. In all cases, if the unit is not purchased by the end of the
42-month project completion period, it must turn into a HOF rental unit and the HOF affordability
requirements for rental housing will apply. The housing unit may revert back to homeownership
at a future date with approval by SDHDA.
The homebuyer must qualify as HOF eligible household at the time the lease-purchase agreement
is signed. A qualifying homebuyer may choose to purchase the unit immediately or may lease the
unit for up to 36 months while preparing for homeownership. A minimum of five percent of the
unit’s predetermined purchase price must be set aside to assist with downpayment and closing
costs. If the homebuyer violates the purchase contract for any reason, the homebuyer forfeits the
downpayment set aside. The Applicant may then select another HOF qualified homebuyer to
continue the lease. The new homebuyer will receive any downpayment set aside remaining after
necessary repairs are made.
B. ELIGIBLE PROGRAMS
The following guidelines must be followed for the types of loans program recipients receive:
80.01% and above: Loan may be repaid or deferred
80% AMI and below: Loan may be repaid, deferred, or forgiven
1. Homebuyer Assistance
Eligible programs include providing assistance to qualifying homebuyers with expenses related to
the purchase of a home, including those related to gap financing, lease-purchase, and self-help
type programs. Additional requirements for Homebuyer Assistance can be found in Exhibit 7.
2. Homeowner Rehabilitation
HOF funds can be used to rehabilitate single family, owner-occupied properties. Additional
requirement for Homeowner Rehabilitation can be found in Exhibit 8.
3. Homelessness Prevention
HOF may be requested for homelessness prevention activities that include tenant based rental
assistance, project based rental assistance, payment of security deposits, or other homelessness
prevention activities for qualified individuals and families in qualified housing units. HOF funds
may be used for acquisition, new construction, or rehabilitation of a building that is or will be used
to provide homelessness prevention activities and can be considered as an eligible activity under
HOF Plan
April 2020 11 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
housing development. Costs to operate the facility are also eligible for HOF financing. Additional
information regarding Homelessness Prevention Activities can be found in Exhibit 9.
C. PERIOD OF AFFORDABILITY
In consideration of providing HOF for affordable housing, the housing must be kept in compliance
and restricted by HOF guidelines for the minimum affordability period specified below, or for the
term of the HOF financing, whichever is longer. Additional information regarding SDHDA’s
monitoring for compliance can be found in Section VIII of this Plan.
Activity Years of Affordability
5 10 15 20
New Construction of Rental Housing with
HOF funds invested per HOF unit as follows:
Under $50,000 X
$50,000 to $100,000 X
Over $100,000 X
Rental Housing (Rehabilitation or
Acquisition of existing housing) with HOF
funds invested per HOF unit as follows:
Under $50,000 X
$50,000 to $100,000 X
Over $100,000 X
Homeownership Projects
Under $15,000 X
Over $15,000 X
Homebuyer Assistance on New Construction
Under $15,000 X
Over $15,000 X
D. TENANT RELOCATION AND DISPLACEMENT
SDHDA typically will not allow permanent displacement of current residents of any project funded
with HOF funds. If Applicant is proposing displacement of current residents, Applicant is
encouraged to contact SDHDA early on to discuss the situation.
E. GUARANTEES
SDHDA will require guarantees from the underlying corporate and individual owners of the
general partner(s) of the Developer, the individual owners of any “shell entities” with an ownership
interest in the Developer or in the Developers general partner(s), and from any guarantors
required by other financing sources investing in the project. A guarantee of completion will ensure
that the Developer will construct and complete the project. A guarantee of performance will ensure
that the project will operate in compliance with all applicable federal, state, and local laws and
regulations. A guarantee of reserves will ensure that annual deposits will be made to a
replacement reserve account in the amount specified in the loan documents.
HOF Plan
April 2020 12 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
IV. FUNDING PROCESS
Requests for HOF funds are considered in a two-step process: Application and Conditional
Commitment. No program operations, new construction, acquisition, or rehabilitation activities
may begin until a start order has been issued by SDHDA.
SDHDA reserves the right to not process any application that SDHDA determines is not: (1)
complete; (2) consistent with the purposes and goals of this Plan; (3) proposing an eligible activity;
or (4) financially feasible.
A. APPLICATION STAGE
The Applicant must submit a complete application and all documentation referenced in Exhibit 1.
Applications will be evaluated according to the following standards.
1. Project Finance Limits
The SDHDA Project Finance Limits are not maximum cost limits, but are target or average costs
that SDHDA determines to be sufficient for development of affordable housing projects. Total
project costs are not limited to the Project Finance Limits; however, SDHDA will utilize them as
the basis for the calculation of SDHDA financing and Developer Fees.
To ensure efficient use of HOF for development of housing units, SDHDA will review the proposed
project costs including: land, site improvements (including existing buildings), construction or
rehabilitation costs, fees (architectural, legal, consulting, etc.), developer’s and/or builder’s profit,
financing and carrying charges, and all other related soft costs.
SDHDA reserves the right to reject any application that it determines, in its sole discretion, to have
excessive total project costs.
Project Cost Limits will be determined for each project by multiplying the number of corresponding
units by the respective per unit finance limit and summing the products. The per unit type finance
limits will be broken into three geographic zones as follows:
Zone 1: Lincoln, Minnehaha, and Union
Unit Type Unit Cost
Group Home (per bedroom) $83,100
SRO $98,900
0 Bedroom (efficiency) $116,300
1 Bedroom $133,300
2 Bedroom $163,300
3 Bedroom $192,800
4 Bedroom $212,100
Zone 2: Beadle, Brookings, Brown, Clay, Codington, Davison, Hughes, Lake, Lawrence, McCook,
Meade, Pennington, Turner, and Yankton Counties
Unit Type Unit Cost
Group Home (per bedroom) $87,200
SRO $103,800
HOF Plan
April 2020 13 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
0 Bedroom (efficiency) $122,100
1 Bedroom $140,000
2 Bedroom $171,500
3 Bedroom $202,500
4 Bedroom $222,700
Zone 3: Aurora, Bennett, Bon Homme, Brule, Buffalo, Butte, Campbell, Charles Mix, Clark,
Corson, Custer, Day, Deuel, Douglas, Edmunds, Fall River, Faulk, Grant, Gregory, Haakon,
Hamlin, Hand, Hanson, Harding, Hutchinson, Hyde, Jackson, Jerauld, Jones, Kingsbury, Lyman,
Marshall, McPherson, Mellette, Miner, Moody, Perkins, Potter, Roberts, Sanborn, Spink, Stanley,
Sully, Tripp, and Walworth.
Unit Type Unit Cost
Group Home (per bedroom) $91,400
SRO $108,800
0 Bedroom (efficiency) $127,900
1 Bedroom $146,600
2 Bedroom $179,700
3 Bedroom $212,100
4 Bedroom $233,300
Zone 4: Indian Reservations: Cheyenne River (Dewey and Ziebach Counties); Crow Creek;
Flandreau Santee; Lower Brule; Pine Ridge (Oglala Lakota County); Rosebud (Todd County);
Sisseton Wahpeton/Lake Traverse; Standing Rock (Corson County); and Yankton. If the county
is not listed after the Reservation, then only the land within the exterior boundaries of the
Reservation are within this zone.
Unit Type Unit Cost
Group Home (per bedroom) $ 99,800
SRO $118,700
0 Bedroom (efficiency) $139,600
1 Bedroom $160,000
2 Bedroom $196,000
3 Bedroom $231,400
4 Bedroom $254,600
Applicants must take into consideration the marketability of the proposed housing units. A
component of marketability is residential unit living square footage. SDHDA has established the
following residential unit living minimum square footage (sq. ft.) requirements:
Group Home – 130 sq. ft. (per bedroom)
Single Room Occupancy (SRO) – 300 sq. ft.
0-bedroom (efficiency) – 500 sq. ft.
1-bedroom – 600 sq. ft.
2-bedroom – 750 sq. ft.
3-bedroom – 900 sq. ft.
4 bedroom – 1050 sq. ft.
HOF Plan
April 2020 14 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Acquisition and rehabilitation projects are not subject to the above minimum square footage
requirements. SDHDA may waive the minimum square footage requirements, but only when it is
justified as being reasonable based on the needs of the tenants being served.
2. Financial Feasibility
Feasibility of all applications will be reviewed. For rental development, the long-term financial
feasibility must be demonstrated with the submission of a pro forma, reflecting a debt service
coverage ratio of not less than 1.15 for the entire affordability period or the term of the loan,
whichever is longer. The debt coverage ratio is the net operating income to the total annual debt
service. Furthermore, the application must reflect that rental income, any subsidies and reserve
funds are sufficient to cover the property’s debt and operating expenses over the period of
affordability. Annually, income will be trended at two percent (2%), expenses and replacement
reserves will be trended at three percent (3%), and vacancy will be projected at seven percent
(7%). A higher vacancy rate may be used for an acquisition/rehabilitation project if the project is
currently sustaining higher vacancies and it is not reasonable to expect the project to achieve a
seven percent vacancy rate within the first year. Balloon loan repayments will not be allowed.
3. Reserve Accounts
To protect financial feasibility, the owner will be required to establish and maintain proper reserve
accounts which may be held in escrow by SDHDA. If an existing property does not have
established reserve accounts, the Applicant must provide notice to SDHDA at time of application
in order to determine how to sustain long-term feasibility.
a. Taxes and Insurance: Escrowed at levels estimated to meet projected expenses.
b. Replacement: Minimum of $400 per unit, per year, must be initially funded and maintained
for the full term of the HOF period of affordability and extended use period or while the SDHDA
HOF loan is outstanding, whichever is longer. If not all major systems are replaced or repaired
in a rehabilitation project, sufficient reserves must be established to allow for replacement of
such components if the normal life span would require such replacement prior to the end of
the affordability period and extended use period.
c. Operating: Minimum of six months operating reserve from a non-HOF funds source to be
used only to pay debt service and operating expenses to prevent an event of default. This
account must be maintained for the full term of the HOF period of affordability and extended
use period or while the SDHDA HOF loan is outstanding, whichever is longer. An Irrevocable
Letter of Credit will also satisfy this requirement.
d. Transfer of ownership must be approved by SDHDA. At such time SDHDA is reviewing the
request for transfer of ownership, SDHDA may negotiate with existing owner regarding the
dollar amount that must be maintained in the operating reserve account, taking into
consideration, but not limited to, the physical condition of the development, demand in the
housing market, and experience of the proposed owner.
4. Determination of HOF Amount
HOF funds are intended to be used as gap financing to make a project financially feasible and
may be provided as a loan or as a forgivable loan. The difference between total project costs and
total available financing resources (including owner equity requirements) is referred to as the gap.
HOF Plan
April 2020 15 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
If HOF funding is in the form of a loan, the payback schedule and interest rate, which will be from
zero to four percent, will be determined based on the project's feasibility. Based on this evaluation,
SDHDA will estimate the amount of HOF funds to be reserved for each application. The analysis to
determine the necessary amount of HOF funds will be done at the time of application, at the time
a conditional commitment is approved, and at the time the project is placed in service, provided
all project costs are finalized and certified. Current rents, along with any anticipated changes in
operating expenses, will be utilized at each underwriting stage.
B. CONDITIONAL COMMITMENT STAGE
Upon notification of a conditional commitment from the SDHDA Board, SDHDA will issue a
Conditional Loan Commitment or Subrecipient Written Agreement to the Applicant outlining the
terms and conditions of the HOF funding. The applicants will be required to accept the Conditional
Loan Commitment by returning the signed letter within 30 days of board approval. Failure to
accept the Conditional Loan Commitment may result, in SDHDA’s sole discretion, in a forfeiture
of the HOF Award.
Applicants will be required to provide additional information and documentation as outlined in
Exhibit 1. The Applicant will have six months from the date of the agreements to provide the
necessary documents, close the HOF loan and begin construction or rehabilitation on the
proposed project or begin program services. Failure to start within this timeframe may result, in
SDHDA’s sole discretion, in a forfeiture of HOF funds.
Changes to Project. The award of HOF funds is based upon information provided in the
application and supporting documentation. Any significant change in an application, once it has
been ranked and awarded HOF funds, may result, in SDHDA’s sole discretion, in a forfeiture of
HOF funds. A significant change include, but is not limited to, any reduction in the number of
bedrooms per unit or square footage of the units, decrease in number of total units, change in
financial feasibility, income being served, project amenities, location, services being offered or
any change that, had it been in the original project, might have resulted in the project receiving a
different ranking or may have influenced the conditional commitment of HOF funds. Any changes
to the project must be pre- approved by SDHDA prior to implementation.
C. DISBURSEMENT OF HOF FUNDS
1. Loan Documentation
Loan documents may include but are not limited to a Conditional Loan Commitment, Subrecipient
Written Agreement, Mortgage Note, Mortgage 180 Day Redemption, Security Agreement, and
Fixture Filing, Assignment of Rents and Leases, Declaration of Land Use Restrictive Covenants,
Regulatory Agreement, Personal Guarantee, Corporate Guarantee, Building Loan Agreement
and Sworn Construction Statement, as applicable.
2. Program/Construction Start
A HOF financed program or new construction or rehabilitation of a building(s) may begin when
SDHDA has received all executed loan documentation and the applicant has received a written
authorization to start from SDHDA. The program must begin, or construction must commence, no
later than six months after execution of the Subrecipient Agreement or the loan commitment.
HOF Plan
April 2020 16 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
3. Draws
For housing development, SDHDA will typically disburse funds at 25 percent, 50 percent, 75
percent and 100 percent of construction completion based on receipt of lien waivers from all
contractors, bills and receipts for all costs outside of the construction contract, an updated Sworn
Construction Statement, AIA Forms G702 Application and Certificate for Payment and G703
Continuation Sheet evidencing the percent of project completion, as applicable. SDHDA will retain
10 percent of final draw until all final project completion information is received, a portion of which
will be the final payment of the Developer’s fee. SDHDA will make periodic site reviews of the
project throughout the construction period and at the completion of construction.
For HOF funded programs, draws will typically be on a reimbursement basis with applicant
requesting HOF funds no more than twice per month. SDHDA may allow pre-funding of programs
in an amount not to exceed 10 percent of the HOF award amount. Administrative fees may only
be requested after services have been provided and will be reimbursed for documented expenses
or 10 percent of the HOF award, whichever is less.
4. Cost Certification
For projects receiving more than $250,000 of HOF funds, or projects with over $500,000 total
project cost, the owner will be required to submit a complete cost certification on SDHDA
approved forms prepared by a Certified Public Accountant prior to the final disbursement of HOF
funds. All cost overruns are the responsibility of the owner. SDHDA may reduce the amount of
HOF funds committed to a project based on a cost certification indicating reduced total project
cost, change in financing, or increase in cash flow since the time of the HOF funds commitment.
5. Loan Repayment
HOF loan repayment will begin approximately six months from the date the project is placed in
service with interest accrual beginning at time of the first disbursement of loan proceeds. Loan
forgiveness or loan repayment terms and conditions will be further defined in the Promissory Note.
6. Recapture of HOF Funds
Unless otherwise noted in the HOF loan documents, HOF funds provided for programs or housing
units are subject to recapture by SDHDA if HOF criteria are not met, including but not limited to
meeting the affordability requirements or program eligibility. Any funds recaptured by Subrecipient
must be returned to SDHDA. Penalties, including interest for the period of time during which the
property was out of compliance, may apply.
If HOF funds are expended on a project that is terminated prior to completion, the HOF funds
previously disbursed must be repaid with interest calculated based on one year Treasury rates
as of the date of cancellation.
V. PROJECT SELECTION CRITERIA FOR HOUSING DEVELOPMENT
Proposals will be reviewed initially for completeness, including all submission requirements
referenced in Exhibit 1 and scored based on the following selection criteria. Housing development
projects must score a minimum of 300 points to be considered for funding.
HOF Plan
April 2020 17 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
A. LOCAL HOUSING NEED (MAXIMUM 100 POINTS)
All Applicants must submit a narrative addressing and documenting the local housing need. Refer
to Exhibit 2 for additional information on what is required for documenting the local housing need.
The applications for communities considered to be facing the highest overall housing need will
receive the highest score. All other applications will be ranked against the highest scoring
Applicants. Communities with two or more low-income housing projects under construction or in
the process of rent-up (less than 90 percent occupied) may receive zero points in this category.
Communities demonstrating increased economic development and the immediate demand for
housing will be considered as having a greater housing need.
B. INCOME TARGETING (MAXIMUM 100 POINTS)
Each of the following set-aside elections are separate and can be combined for up to 100 points
and up to 100 percent of the units being restricted. An application can elect to set aside units for
different AMIs, but a unit cannot be used to serve more than one set-aside election.
% of Units Restricted AMI Target Points Awarded
10% 30% 10
10% 50% 7
10% 80% 5
10% 115% 2
For example, a proposal that elects to set aside HOF assisted units for households not exceeding
30 percent of AMI will receive 10 points for every 10 percent of the units set aside for 30 percent
AMI.
C. EXTENDED USE COMMITMENT (MAXIMUM 10 POINTS)
Applicants who make a commitment to extend the affordability period for 10 years beyond the
required affordability period as defined in Section III.C. Period of Affordability will receive 10
points. Applicants choosing to extend the affordability period will be prohibited from applying for
HOF for the same development during the extended use period.
D. SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS)
Proposals containing one of the following will receive up to 25 points:
a. Financial support from local governmental/private incentives, including but not
limited to cash, in-kind services, or tax abatements, to reduce project costs or
enhance feasibility; or
b. Other private or foundation assistance to achieve greater affordability; or
c. Non-fee based partnerships with other agencies which enhance the capacity of the
Applicant.
E. SERVICE ENRICHED HOUSING (MAXIMUM 20 POINTS)
Projects providing verifiable on-site services to tenants which may include but are not limited to
the following types of projects may receive up to 20 points depending upon the extent of the
services. Refer to Section IX Definitions for further guidance on service enriched housing.
a. Homeless
HOF Plan
April 2020 18 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
b. Persons with physical disabilities
c. Persons with mental disabilities
d. Persons with developmental disabilities
e. Housing for Older Persons 62 or Older
f. Other
Note: SDHDA, the Department of Human Services (DHS), and the Department of Social Services
(DSS) have entered into an agreement whereby full integration of citizens with disabilities into
individualized housing settings rather than group home type housing will be promoted. All housing
designed specifically for people with disabilities must receive prior approval from DHS and/or DSS
before submitting an application to SDHDA. Documentation of approval or that an application has
been submitted to DHS or DSS must be submitted with the application. Applicants serving the
homeless are required to participate in the Homeless Management Information System (HMIS),
through SDHDA.
F. PERCENTAGE OF SOFT COSTS USED FOR PROJECT COSTS (MAXIMUM 40 POINTS)
Reasonable and necessary soft costs associated with the development of housing may include
the following:
a. Architectural, engineering or related professional services.
b. Financing costs such as origination fees; credit reports, title insurance, fees for
recordation and filing of legal documents, building permit fees, attorney’s fees
directly related to the project; appraisal fees and fees for independent cost
estimates; and developer’s fee or builder’s fee.
c. Costs for an audit or cost certification that SDHDA may require with respect to the
development of the project.
d. Costs to provide information services such as affirmative marketing and fair
housing information to prospective homeowners and tenants as required by Fair
Housing.
e. Developer’s Fees which may not exceed 10 percent of the total project costs. For
purposes of the foregoing limitations, “total project costs” do not include any costs
that exceed the Project Cost Limits. The Developer Fee includes the Consultant’s
Fee and will be limited to the fee calculated at the time of Board reservation. If
developers defer their Developer Fee, the amount deferred will be underwritten as
a project financing source.
f. Consultant’s Fees will be included within the Developer’s Fee limitation, but
individually cannot exceed two percent of the total project costs. The Consultant
will be expected to provide services through completion of the development.
HOF Plan
April 2020 19 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
g. Builder/General Contractor’s Fees: Builder's Profit is limited to six percent,
Builder's Overhead is limited to two percent, and General Requirements is limited
to six percent of the total project hard costs for the project.
An application with soft costs that are less than 20 percent the total project costs will be awarded
up to 40 points as set forth below:
% Soft Costs Points Awarded
0.00% - 9.99% 40
10.00% - 14.99% 30
15.00% - 19.00% 20
Soft costs include, but are not limited to all items in a - g of this section and operating and rent-up
reserves, origination fees, and partnership organizational fees.
G. READINESS TO PROCEED CRITERIA
SDHDA, at its discretion, may award up to 130 points to projects that most clearly demonstrate
readiness to proceed. Such determination will include the following factors:
1. Plans and Specifications (Maximum 25 Points)
Applications containing architectural plans/working drawings that are at least 50 percent complete
or a physical needs assessment for rehabilitation projects will be awarded 25 points.
2. Site Control (Maximum 25 Points)
Applications containing documentation that the Applicant and/or owner has a recorded warranty
deed, a recorded long term lease, or approval of Transfer of Physical Assets (TPA) from the
appropriate HUD, Rural Development, or SDHDA office for existing projects in the name of the
Applicant will receive 25 points.
Applications containing an option agreement will receive 10 points.
Applications containing a letter of interest will receive 5 points.
Applicants should be cautioned that a conditional commitment of HOF funds is site specific,
therefore any changes to the site may require a full review of the application and reconsideration
by SDHDA.
3. Construction Financing (Maximum 30 Points)
Applications containing documentation of enforceable construction/interim financing
commitments executed by the Applicant and Lender, as applicable for the project, will receive up
to 30 points.
4. Permanent Financing (Maximum 30 Points)
Applications containing documentation of enforceable permanent financing commitments
executed by the Applicant and Lender, and disclosing a fixed interest rate, term of at least 15
years, and all conditions may receive 30 points. Generally, an enforceable financing commitment
is a written approval of a loan or grant from a lender which is subject only to conditions of which
are within the Applicant’s control (other than the award of other funding). The loan commitment
HOF Plan
April 2020 20 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
must contain a representation and acknowledgement from the lender that such lender has
reviewed the HOF application submitted by the Applicant to SDHDA in support of the HOF for the
project to which such commitment relates and that such lender acknowledges that the project will
be subject specifically to rent and income restrictions and other special use restrictions agreed to
by the Applicant. Commitment with fixed rate and term of less than 15 years may receive 10
points.
5. Zoning (Maximum 10 Points)
Applications containing documentation that the project site is properly zoned for its proposed use
will receive 10 points.
6. Platting (Maximum 10 Points)
Applications containing documentation that the project site has had a final plat recorded (includes
referencing plat book and number) will receive 10 points.
H. PROJECT CHARACTERISTICS (MAXIMUM 200 POINTS)
Points will be awarded up to 200 points based on the Exhibit 4 that has been completed (points
indicated) and signed by the Applicant and architect. Characteristics indicated by the Applicant
and architect will be verified by SDHDA staff based on final architectural plans, specifications,
and a physical inspection prior to final disbursement of HOF funds.
I. FINANCING TYPE (MAXIMUM 25 POINTS)
HOF funds may be utilized in a variety of financing options. Forgivable loans will receive zero
points. Points will be awarded as follows:
Financing Options Points Awarded
Guaranty or Regular Amortization Loan 25 Points
Irregular Amortization Loan 15 Points
Cash Flow/Deferred Mortgage 5 Points
VI. PROJECT SELECTION CRITERIA FOR PROGRAMS
Proposals will be reviewed initially for completeness, including all submission requirements
referenced in Exhibit 1 and scored based on the following selection criteria.
A. PROGRAM DEMAND (MAXIMUM 100 POINTS)
All Applicants must submit a narrative addressing and documenting the need for the proposed
demand, via a waiting list, etc. If the services are a continuation of an existing program, provide
explanation of why the HOF funds are necessary, whether the HOF funds are expanding the
services, replacement of other funds, etc. If HOF funds are being requested for a new program,
applicant must document how the need for additional services was determined and whether other
service agencies provide similar services in that geographic area.
HOF Plan
April 2020 21 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
B. INCOME TARGETING (MAXIMUM 100 POINTS)
Each of the following set-aside elections are separate and can be combined for up to 100 points
and up to 100 percent of the units being restricted. An application can elect to set aside units for
different AMIs, but a unit cannot be used to serve more than one set-aside election.
% of Units Restricted AMI Target Points Awarded
10% 30% 10
10% 50% 7
10% 80% 5
10% 115% 2
For example, a proposal that elects to set aside HOF assisted units for households not exceeding
30 percent of AMI will receive 10 points for every 10 percent of the units set aside for 30 percent
AMI.
Proposals for homelessness prevention activities will be scored as serving 100 percent at 50
percent AMI, unless otherwise documented in the application.
C. EXTENDED USE COMMITMENT (MAXIMUM 10 POINTS)
Applicants who make a commitment to extend the affordability period for 10 years beyond the
required affordability period as defined in Section III.C. Project Period of Affordability will receive
10 points. Applicants choosing to extend the affordability period will be prohibited from applying
for HOF for the same development during the extended use period.
D. FINANCIAL SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS)
Proposals containing one of the following will receive up to 25 points:
a. Financial support from local governmental/private incentives, including but not
limited to cash, in-kind services, or tax abatements, to reduce project costs or
enhance feasibility; or
b. Other private or foundation assistance to achieve greater affordability, or
c. Non-fee based partnerships with other agencies which enhance the capacity of the
Applicant.
E. PROGRAM POLICY AND PROCEDURE MANUAL (MAXIMUM 30 POINTS)
Applicants who submit a written policy and procedure manual for their proposed program are
eligible to receive up to 30 points. The manual, at a minimum, must outline the process for
receiving applications, approving recipients, verifying income eligibility, and implementing the
program. In order to receive full points, the manual must also include the forms to be utilized by
the Applicant in administering the program.
F. OTHER PROGRAM FUNDS (MAX IMUM 30 POINTS)
Applications containing written documentation of committed funds to be utilized in the program as
match or leveraging for like activities, will receive up to 30 points. Points will not be awarded for
additional funding provided by SDHDA as the match.
HOF Plan
April 2020 22 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
G. FINANCING TYPE (MAXIMUM 25 POINTS)
HOF funds may be utilized in a variety of financing options. Points will be awarded as follows:
Financing Options Points Awarded
Guaranty or Regular Amortization Loan 25 Points
Irregular Amortization Loan 15 Points
Cash Flow/Deferred Mortgage 5 Points
H. PARTNERING WITH OTHER AGENCIES (MAXIMUM 30 POINTS)
HOF applicants who can document via written agreements, partnering with other agencies to
provide a continuum of services, without duplicating services, will be awarded up to 30 points.
The services being coordinated must be related services that enhance the success of the program
recipients. An example would be the homelessness prevention provider partnering with a job
service provider to find employment opportunities for the clients. Points will not be awarded for
services that SDHDA already requires.
VII. OTHER REQUIREMENTS
A. FAIR HOUSING AND EQUAL OPPORTUNITY
All Applicants and owners must adhere to Title VIII of the Civil Rights Act of 1968 (Fair Housing
Act), as amended, which prohibits discrimination in the sale, rental, and financing of dwellings,
and in other housing-related transactions, based on race, color, national origin, religion, sex,
familial status (including children under the age of 18 living with parents or legal custodians,
pregnant women, and people securing custody of children under the age of 18), and disability.
Additional information can be found at -
https://www.hud.gov/program_offices/fair_housing_equal_opp.
B. LEAD-BASED PAINT
Applications that involve the renovation, sale or leasing of housing units built before 1978, must
address the potential of lead-based paint hazards. Before renting or selling pre-1978 housing,
landlords and sellers must disclose the presence of known lead-based paint and lead-based paint
hazards in the dwelling. In addition, rehabilitation, renovation, repair, and painting activities that
disturb lead-based paint (like sanding, cutting, replacing windows, and more) must be done within
safe work practices. For additional information regarding lead based paint and safe work
practices, please visit the following websites – https://www.epa.gov/lead or -
https://www.hud.gov/program_offices/healthy_homes/healthyhomes/lead.
C. CONFLICTS OF INTEREST
Applicants must disclose to SDHDA if any conflicts of interest exist. A conflict of interest is deemed
to exist whenever an individual is in the position to approve or influence the policies or action of
the project which involve or could ultimately harm or benefit financially: (a) the individual; (b) any
member of his immediate family (spouse, parents, children, brothers or sisters, and spouses of
these individuals); or (c) any organization in which he or an immediate family member is a Director,
trustee, officer, member, partner or more than 10% shareholder. Service on the board of another
nonprofit corporation does not constitute a conflict of interest.
HOF Plan
April 2020 23 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
D. DEBAREMENT AND SUSPENSION
Owners and contractors are prohibited from employing, awarding contracts, or funding any
contractors or subcontractors that have been debarred, suspended, proposed for debarment or
placed on ineligibility status by the federal government. In addition, any owners who are debarred,
suspended, or proposed for debarment will be prohibited from participating in the HOF program.
Those excluded from participating are listed on the Excluded Parties List System found at
https://www.sam.gov/SAM/.
E. HISTORIC PROPERTIES
Applicants proposing rehabilitation of a structure which is over 50 years old should contact the
local and State Historical Preservation Offices to determine if the proposed rehabilitation will have
any effect on the historical significance of the structure or if adherence to the National Historic
Preservation Act (16 U.S.C. 470) is required.
F. FLOOD INSURANCE
HOF funds may NOT be used in connection with new construction or purchase of housing unit(s)
located in an area identified by the Federal Emergency Management Agency (FEMA) as having
special flood hazards (areas of high risk of flooding). SDHDA may require a flood certification for
any project.
SDHDA will not allow HOF funds to be used for rehabilitation of housing units that are located in
FEMA designated special flood hazard areas, unless flood insurance has been purchased for the
property or the property is located in an area of low risk and the proposed rehabilitation was not
caused by flooding, drainage, or other ground water issues.
VIII. MONITORING FOR COMPLIANCE
SDHDA will monitor each project for compliance with HOF program requirements during the
affordability and extended use periods. HOF program compliance will be assessed through
annual reporting, certifications, and on-site reviews conducted by SDHDA staff. SDHDA will
provide a HOF program compliance guide detailing required responsibilities and provide
compliance training for Applicants. SDHDA will require the owner or management company to
attend Fair Housing compliance training prior to final disbursement of funds and at a minimum of
once every three years from the date of final disbursement of funds.
SDHDA may impose financial penalties for non-compliance. All HOF program, rent, and
occupancy requirements, along with other special use restrictions imposed under the Plan, will be
made part of the Declaration of Land Use Restrictive Covenants or Subrecipient Agreement.
IX. DEFINITIONS
Affordability: Affordability refers to the requirements of the HOF program that relate to the cost
of housing both at initial occupancy and over established timeframes. Affordability requirements
vary depending on the nature of the HOF assisted activity (i.e., homeownership or rental housing)
and the amount invested.
HOF Plan
April 2020 24 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Aff ordable Housing: Housing that is affordable if the total housing costs, which includes rent,
utilities, mortgage, and related expenses, represents no more than thirty percent of gross
household income for the AMI being served.
Affordable Units: Housing units targeted for 115 percent of AMI or less.
Annual Income: For rental housing, SDHDA uses the annual income definition as defined in 24
CFR Part 5.609 (Part 5 Annual Income). For homebuyer activities, SDHDA uses the adjusted
gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form
1040 series for individual federal annual income tax purposes.
Applicant: Applicant refers to the owners, developers, and sponsors involved with the project.
Area Median Income (AMI): The income determined by HUD on which HOF income limits and
rent limits are based.
Builder’s Profit: Compensation to the builder for completing the construction contract.
Builder’s Overhead: Builder's business expenses (e.g., rent, insurance, heating, etc.) not
chargeable to a particular part of the work or product to build the project.
Commitment: The written, legally binding agreement between SDHDA and the project owner
providing HOF funds to a project.
Developer’s Fee: Compensation to the developer for time and risk involved to develop the
project.
General Requirements: An allowance for the contractor’s project-related expenses, such as
building permits, fencing around the site, temporary storage for materials, and the cost of a
performance and payment bond, etc.
Group Home: A congregate residential facility, other than a supervised apartment, for individuals
with developmental disabilities which is certified by the State Department of Human Services
according to ARSD 46:11 to provide residential services, training in skills needed for independent
living, recreational activities, and basic supervision for individuals with developmental disabilities.
HUD: U.S. Department of Housing and Urban Development.
HUD Housing Quality Standards (HQS): The performance standards for housing as established
in 24 CFR Part 882 and amended by the Lead Paint Regulations in 24 CFR Part 35.
New Construction: Any project involving adding units outside the existing walls of the structure,
the construction of new residential units, and the acquisition of land or the demolition of an existing
structure for the purpose of constructing a new structure.
Reconstruction Project: A project that replaces an existing building’s floor plan with an overall
new floor plan for residential living units or that replaces an existing building’s residential unit
plans with new residential unit living plans.
Service Enriched Housing: Projects providing affordable rental housing (permanent or
transitional) that include services and assistance that are available to residents upon request. The
HOF Plan
April 2020 25 of 25
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
services must be unique to the property, verifiable, on-site, long -term, and provided on a daily or
continuous basis. The services may be provided by the owner, the management company, or a
third-party organization but must be tailored to individual residents and managed by the property.
There must be a definable increase in project development costs and or operating cost to the
owner to be able to provide the services. The application must include a letter of intent from the
service provider detailing the services to be provided, the tenants that will receive the services,
the method of delivering the services, and the staffing for the services which may include but is not
limited to the following:
a. Homeless
b. Persons with physical disabilities
c. Persons with mental disabilities
d. Persons with developmental disabilities
e. Housing for Older Persons 62 or older (Assisted Living or Congregate Care
Facilities as defined under Definitions)
f. Assisted Living or Congregate Care Facilities as defined under Definitions
g. Other
Services and assistance are not a requirement for tenancy but there must be a mechanism for
immediate support and assistance when requested by any resident.
Single Family Project: A project consisting of individual single family dwellings or a project with
one or more buildings containing four or less units per building.
Single Room Occupancy (SRO): Housing (consisting of single room dwelling units) that is the
primary residence of its occupant or occupants. The unit must contain either food preparation or
sanitary facilities (and may contain both) if the project consists of new construction, conversion of
non-residential space, or Reconstruction. For acquisition or rehabilitation of an existing residential
structure or hotel, neither food preparation nor sanitary facilities are required to be in the unit. If
the units do not contain sanitary facilities, the building must contain sanitary facilities that are
shared by tenants.
HOF Plan
April 2020 1 of 4
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 1
REQUIRED SUBMISSIONS FOR COMPLETE APPLICATION
A. Applications must be submitted using the appropriate SDHDA HOF Application Form. There
are two separate application forms – Rental Development and Homeownership and
Programs. SDHDA may reject applications with incomplete or incorrect information. For an
application to be considered as complete, the application form must be completed and signed
and the application must include the following items.
Applications submitted for Programs must include the following:
1. Completed and signed application form.
2. Documentation of Program Demand (Section VI.A.).
3. Project narrative outlining the program characteristics (services provided, clients served,
partner agencies, other funding sources, etc.).
4. At least two letters of local support for the proposed program. The letters must be from
local organizations such as the city office, economic development corporation, public
housing authority, employers, commercial lenders, etc.
5. Information regarding the Applicant/owner, including staff and years of experience in
housing or related field or service area. i.e. resume’s
6. If applicable, documentation of financial support from local sources (Section VI.D.).
7. If applicable, program policy and procedure manual (Section VI.E.).
8. If applicable, documentation of other program funds being provided as match funding
(Section VI.F.).
9. If applicable, written agreements with partnering service agencies (Section VI.H.).
10. Any other information requested by SDHDA.
Applications for new construction and rehabilitation of housing units for both rental and
homeownership must include the following, unless otherwise stated:
1. Completed and signed application form.
2. Documentation of Local Housing Need (Section V.A. and Exhibit 2).
3. Project narrative outlining the project and program characteristics (services provided,
tenants served, amenities provided, financing proposed, etc.).
4. At least two letters of local support for the proposed housing units. The letters must be
from local organizations such as the city office, economic development corporation, public
housing authority, employers, commercial lenders, etc.
HOF Plan
April 2020 2 of 4
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
5. Information regarding the Applicant/owner, including staff and years of experience in
housing or related field or service area. i.e. resume’s
6. Copy of utility allowance calculation and supporting documentation from the local Public
Housing Authority or utility provider – required for rental projects only.
7. Pro Forma for the entire affordability period, extended use, or the term of the HOF loan,
whichever is greater (Section IV.A.2.) – required for rental projects only.
8. Supporting documentation for all annual operating expenses evidencing how the Applicant
arrived at the proposed amounts (e.g., calculation of real estate taxes from county
assessor). If the proposed project involves rental acquisition and/or rehabilitation, this
requirement may be met with the submission of three years of historical financial
information – required for rental projects only.
9. Documentation of site control. i.e. recorded deed, signed purchase agreement
10. Architectural plans containing a site plan showing the general build-up of the site including
the location of all proposed building, streets, parking areas, service areas, playgrounds,
etc., and typical floor plan, providing dimensional plan for each typical living unit (Section
V.G.1.).
11. Documentation of how the project site is zoned at the time of application and
documentation that reflects the current status of a project’s plat (Section V.G.5 and 6). i.e.
zoning letter from the City or County
12. Letter of notification to the applicable local housing authority – required for rental projects
only.
13. Completed Exhibit 4 signed by the Applicant and Architect indicating the features included
in the project (Section V.H. and Exhibit 4).
14. If applicable, letter of intent from the service provider detailing the services, the tenants
who will receive the services, the method of delivering the services that will be provided,
and the staffing for the services (Section V.E.) – required for rental projects only.
15. Letter of intent evidencing the preliminary arrangements for construction, interim, and
permanent financing, including the amount of the loan, the interest rate, and the term
(Section V.G.3. and 4).
a. NOTE: Interim financing (bridge loan) fees will not be allowable project costs if
financing is provided by an entity or individual having a financial, business, or family
relationship with the developer, builder, syndicator, or Applicant. Only interest costs at
or below market rate will be allowed.
16. If applicable, documentation of support from local sources (Section V.D.).
17. For projects involving acquisition and/or rehabilitation:
a. Relocation plan and budget;
HOF Plan
April 2020 3 of 4
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
b. List of tenants occupying the property currently and for the four months previous to
application submission.
c. Three years of historical financial information.
d. Detailed description of the rehabilitation to be completed for the exterior, interior and
by apartment unit and the corresponding cost. To obtain points under Section V.G.1.
(Readiness to Proceed Criteria) Applicant must submit a physical needs assessment.
18. Documentation of utility availability (i.e. water, sewer, electric, natural gas) or proposed
dates as to when all utilities will be available at the project location. i.e. letters from all
applicable utility providers stating availability
19. If applicable, copy of Consultant Agreement.
20. If applicable, copy of Lease Purchase Management Plan.
21. Any other information requested by SDHDA
B. Conditional Commitment
All requirements in this section must be provided, within 120 days from the date of the
Conditional Loan Commitment or the Subrecipient Written Agreement and before closing and
funding of the HOF financing.
Applicants for programs and housing development must submit the following:
1. Information on the ownership entity, including an executed copy of the partnership
agreement or articles of incorporation, or articles of organization; a copy of the certificate
of registration from the Secretary of State in the State of South Dakota; and a copy of
federal taxpayer identification number.
2. An affidavit executed by the owner, general partner, or an officer or a director stating that
under penalties of perjury all facts and statements contained in all documents and exhibits
submitted in conjunction with the application for HOF funds are true and accurate to the best
of his or her knowledge.
3. Signed commitments for all funding sources (conventional lender, foundations, local
financing, etc.) associated with the project including the amount, conditions, rate and term.
4. Any additional information SDHDA may deem necessary.
In addition to the above, program applicants must submit a copy of the program policies and
procedures outlining how the program will be administered including copies of the template
forms and documents.
In addition to the above, applicants for new construction and rehabilitation of housing units for
both rental and homeownership must submit the following:
1. Signed commitments for all funding sources (conventional lender, foundations, local
financing, etc.) associated with the project including the amount, rate and term.
2. Site ownership documented by a recorded contract for deed, warranty deed, or long-term
lease (lease must be for longer than the minimum affordability requirement or through the
HOF Plan
April 2020 4 of 4
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
extended use period). All ownership by contract for deed must include an amendment to
the contract which states the deed holder is knowledgeable of and agrees to comply with
all requirements of the HOF Program regulations for the period of affordability and/or any
extended use pledged in the application.
3. Final itemization of the project costs including both hard cost and soft costs (including a
copy of the contractor’s contract).
4. Final architectural plans and specifications. Architectural plans for new construction of
rental units must be stamped by the project Architect and Engineer.
5. Copy of the proposed management plan, management agreement, resident selection
policy, Section 504 reasonable accommodation policy, and the intended lease to be
utilized for the project – required for rental projects only.
6. Projects involving acquisition of an existing property must submit a “Market Value As Is”
appraisal. Projects involving rehabilitation or new construction must submit a “Market
Value As If Completed” appraisal. Such appraisals must meet the Uniform Standards of
Professional Appraisal Practice (USPAP) and completed by an independent, State
Department of Revenue and Regulation certified appraiser.
(https://dlr.sd.gov/appraisers/appraiser_roster.aspx). Applicant will pay for all costs of the
appraisal, which costs may be included in the HOF financing.
7. Rehabilitation of housing developments consisting of 20 units or more will be required to
submit a physical needs assessment. The physical needs inspector must be approved by
SDHDA. The Applicant must pay for all costs of the physical needs assessment which costs
may be included in the HOF financing.
8. Projects involving acquisition and/or rehabilitation of a pre-1978 property must provide
information on how they will comply with lead-based paint requirements.
HOF Plan
April 2020 1 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 2
LOCAL HOUSING NEED REQUIREMENTS
All Applicants must submit documentation evidencing the need for the proposed housing.
Projects involving rehabilitation of existing housing units may provide three year’s occupancy
records to demonstrate the housing need. However, if the proposed project will dramatically alter
the units and tenancy and the development consists of 20 or more units, then a third-party market
analysis must be submitted.
Applicants proposing construction of fewer than 20 new housing units may provide their own
analysis of housing demand, and will not be required to contract with a third-party analyst.
Applicants proposing to construct 20 or more new housing units must submit a third-party market
analysis. The analyst completing the study must be unaffiliated with the developer and have
housing knowledge and experience. A South Dakota licensed appraiser who is MAI certified and
meeting the criteria listed may also complete the market study.
The analysis of housing demand must have been completed within the last six months from the
application date.
The documentation of housing need and the third-party market study must address the following:
1. Review of proposed site including color photos of the site and adjoining property;
description of site characteristics including the size, shape and general topography; and
evaluation of the accessibility and visibility of the site;
2. Review of the proposed project including the number of units by number of bedrooms and
bathrooms, income levels to be served, rent to be charged, calculating utility allowances
and amenities to be provided;
3. Review of existing community services and their proximity to the proposed project
including a site map identifying such services;
4. Review and listing of existing multifamily projects in the market area for both affordable
housing (Section 8, HOME and Rural Development) units and market- rate units listing the
type of housing, location, number of bedrooms, number of bathrooms, size of units,
condition of buildings, vacancy rates, waiting lists, amenities, utility allowances (whether
included in rent or not), and rental rates;
5. Review of projected new housing projects (BOTH affordable and market rate, rental and
homeownership) including number and type of building permits issued in the past three
years;
6. Review of current population characteristics, such as total population, income levels, age
breakdown, migration trends, and five year projection of future changes to the population
and its characteristics;
7. Review of the type of employment opportunities and entry-level wages including economic
changes proposed that could potentially affect the number of jobs or wages;
HOF Plan
April 2020 2 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
8. Review of existing housing conditions and projected rental housing demands, including
the breakdown of the number, size and rent level of units necessary to fill the demands of
the community;
9. Review of meeting/correspondence with local planners, housing and community
development officials, employers, and market participants to evaluate the local perception
of the need for additional housing; and
10. Executive Summary with a precise statement of the conclusions reached by the analyst.
The statement must include the analyst’s opinion of (i) market feasibility, (ii) the prospect
of long-term performance of the property given housing and demographic trends and
economic factors, (iii) recommended modifications to the proposed project, (iv) market
related strengths and weaknesses, (v) positive and negative attributes and issues that will
affect the property’s lease-up and performance, and (vi) the impact the subject property
will have on the existing multifamily projects.
The following issues must be considered for each potential market before the development of
additional units is pursued:
1. Whether the community experienced growth in recent years and is projected to continue
to grow.
2. Whether there has been any significant changes in the economic arena for the area, such
as major employers leaving or moving into the area or are expected to leave or move in.
Note that the definition of "major" will vary by community.
3. A determination as to whether vacancies that may have existed prior to the population
growth have been absorbed, or whether there are vacancies in the market area now. If
there are the vacant units, they need to be evaluated to determine if they are obsolete,
have deferred maintenance, have deep rental subsidies, or qualify for Section 8 Vouchers
(if available).
4. Determine if the need is for housing for families, young professionals, retirees, or the
elderly, and what the most suitable housing would be for the identified population; such
as whether there is a need for single family homes, townhouse or condominium type
housing units with lower maintenance requirements, independent apartments, congregate
housing, or assisted living units. Also, determine if there are existing vacant units or
structures in the community or region that could be rehabilitated or moved in to address
the demand for housing in a more affordable manner than new construction.
5. A determination must be made as to whether there is a need for market rate housing or
housing targeted to lower income households.
HOF Plan
April 2020 1 of 1
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 3
APPLICATION CHECKLIST
The following items must be submitted with the Application form to ensure a complete application
is received by SDHDA. Please refer to the HOF Plan and application for clarification of any
submission items.
Submission Item Enclosed Meet SDHDA Requirements
All Applications:
1. Completed/Signed Application Form
2. Local Housing Need/Program Demand
3. Project Narrative
4. Letters of Local Support
5. Applicant/Owner Information
Applications for Development of Housing Units
6. Utility Allowance Calculation
7. Pro Forma
8. Documentation of Operating Expenses
9. Site Control
10. Architectural Plans
11. Zoning Letter and Project Plat
12. PHA Notification
13. Executed Project Characteristics (Ex. 4)
14. Documentation of Financing
15. Availability of Utility Service
The following items may not be applicable to every project but Applicant must carefully review the
following and submit what is pertinent to their application for documenting points or meeting
submission requirements.
1. Documentation of Local Support
2. Service Provider Letters
3. Acquisition/Rehabilitation Projects:
a. Relocation Plan
b. Rehabilitation Listing
c. Three Years Historical Financials
d. Tenant Rent Roll
4. Lease Purchase Management Plan
5. Copy of Consultant Agreement
6. Copy of Policy and Procedures
7. Documentation of Other Program Funds
8. Copy of Partnership Agreements
HOF Plan
April 2020 1 of 6
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 4
MULTIFAMILY PROJECT CHARACTERISTICS
Applicant only eligible to receive up to 200 points.
Indicate if the project will include each characteristic by placing an X in the box to the left of each
applicable line item. NOTE: No points are allowed for characteristics associated with previous
phases.
Minimum standards apply to all new construction projects; however, rehabilitation or
Reconstruction projects should also strive to meet these minimum standards.
Site Exterior
Parking:
Minimum
Standards
At a minimum, the parking lot will be engineered asphalt, having concrete
curb and gutter where required. Single Family home developments must
contain concrete off-street parking for two vehicles. For multifamily
developments, each efficiency, 1 and 2 bedroom units must have 1-1/2
parking spaces and each 3 and 4 bedroom units must have 2 parking
spaces. The number of handicap designated spaces must equal the
amount of handicap units. In the event that local jurisdiction codes
exceed this total then the local code supersedes these requirements.
Garage counts as parking space(s).
10 points
Multifamily projects that include carports capable of parking at least 1
vehicle per unit or a garage for at least 50% of the units. At a minimum
the carports are to be constructed of weather resistant steel, attached to
footings or a thickened concrete slab, contain a concrete slab and meet
minimum code design requirements.
15 points Multifamily projects with off-street concrete parking lot that meets above
requirements.
25 points Multifamily projects that includes a garage capable of parking at least 1
vehicle for all units.
Sidewalks:
Minimum
Standards
A concrete sidewalk will be provided from the primary entrance door and
any accessible entry door to a public right of way.
Exterior Landscaping:
Minimum
Standards
New Construction should have a minimum of a live landscaped area of
no less than 5% of the hard surfaced area of the project site. Hard
surface includes building pad as well as all sidewalks, parking lots and
other hard finish areas.
Minimum
Standards
Multifamily rental project of 16-47 units must have at least one Section
504 compliant playground area. Projects of 48 or more units, must have
at least two Section 504 compliant playground areas. A basketball court,
skate park or other like area approved by SDHDA would also qualify as
a second playground. Three play components are required per
playground area with a minimum of one ground level play component on
an accessible route. If additional types of ground level play components
are incorporated each type must be on an accessible route.
HOF Plan
April 2020 2 of 6
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Minimum
Standards
A minimum of a 4 foot downspout extension or 3 foot concrete splash
block that positively discharges water away from the foundation at all
downspout locations.
5 points Use of drought resistant live plants or Xeriscaping design principals or
use of rain sensor irrigation for landscaped areas.
10 points Downspouts that are attached to a storm sewer system.
Signage:
Minimum
Standards
The project must have permanent signage installed with Equal Housing
Opportunity and ADA logos and the identification of the developer and
South Dakota Housing Development Authority.
Building(s) Exterior
Exterior Siding/Finish:
Minimum
Standards
Minimum of 15 year finish warranty 30 year substrate warranty solid
cementious or composite prefinished siding. If vinyl siding is used, it must
be a minimum of 0.44 mil thick and have a lifetime warranty. Prefinished
soffits, fascia, gutters and downspouts are required.
10 points At least 25% of building exterior finished in brick, stone, EIFS or stucco.
25 points At least 80% of building exterior finished in brick, stone, EFIS or stucco.
Roofing:
Minimum
Standards
Minimum of 30 year warranty asphalt or composite shingle, 29ga metal
roofing with a 40 year film and 30 year chalk/fade warranty or a
rubberized roof system with a 30 year warranty for flat roofs.
15 points Use of UL 2218 Class 4 impact resistant shingles or 26ga UL 2218 Class
4 impact resistant metal roofing.
Windows/Doors:
Minimum
Standards
Energy Star certified exterior prefinished windows constructed of vinyl,
wood, composite or fiberglass containing Low-E Glass scored with better
than .30-U Factor (lower is better) and a SHGC of 0.42 or higher (higher
is better) by the National Fenestration Rating Council.
10 points Windows scored with a .27 U-Factor or better (lower is better) by the
National Fenestration Rating Council.
Minimum
Standards
Exterior doors shall be insulated steel or composite in a metal clad or
composite frame/brickmould. Unit entry doors without windows shall
have a peephole installed with 180 degree view. Two peepholes are
required on accessible units, one at 43” and one at standard height. All
unit entry doors must be equipped with a deadbolt with 1" inch throw into
reinforced jamb. Common apartment entry doors can also be aluminum
storefront doors or hollow metal framed with insulated steel door.
Minimum
Standards
Main entrances for projects containing interior accessed units must be
equipped with an ADA/ABA compliant automatic door opener.
20 points Main entrances for projects containing interior accessed units designed
with a foyer and equipped with a security access system.
20 points Townhome that have exterior entrances at ground level for all units.
Construction and Energy Efficient Design Features
Wall/Roof Assembly:
Minimum
Standards
Slab on grade construction to have a minimum R-10 vertical foundation
and horizontal perimeter under slab insulation per 2012 IECC. A
minimum 6 mil or greater vapor barrier to be required under slab.
HOF Plan
April 2020 3 of 6
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Minimum
Standards
2x6 exterior wall assemblies insulated to a minimum of R-20. Roof
assembly to have minimum 12’ energy heel trusses and insulated to a
minimum of R-49. Rim/band joists to be insulated to the same R-value
as the exterior walls. All assemblies must be constructed to the higher of
the SDHDA minimum, local adopted code or the current state adopted
IRC/IBC if no local code exists.
10 points All party walls and common walls containing at least 3.5" of sound
attenuation insulation.
10 points Light weight concrete or Gypcrete surfacing on floors.
Special and Accessible Design Features:
Minimum
Standards
All projects containing more than 4 units must be compliant with Section
504 under the Rehabilitation Act of 1973. All other housing must meet
the requirements of the Fair Housing Act. Rehabilitation of housing
containing more than 15 units and costing at least 75% of replacement
cost or that is vacant must also meet Section 504.
5 points
Up to 15 points will be awarded for projects that create additional
accessible units for individuals with mobility and/or sensory impairments.
A minimum of one additional unit must be added above the federal
minimum requirements. Accessible units shall to the maximum extent
feasible and subject to reasonable health and safety requirements, be
distributed throughout projects and sites and shall be available in a
sufficient range of sizes and amenities so that a qualified individual with
handicaps’ choice of living arrangements is, as a whole, comparable to
that of other persons eligible for housing assistance under the same
program. This shall not be construed to require provision of an elevator
in any multifamily housing project solely for the purpose of permitting
location of accessible units above or below the accessible grade level.
Total Percent of Accessible Units
5 points - 5.00% to 10.00%
10 points - 10.01% to 15.00%
15 points - 15.01% to 20.00%
10 points
15 points
15 points
Incorporation of the 7 Universal Design Principles in at least 25% of all
units or single-family developments with accessible routes into and
through the home including zero step entry, not including Section 504
units. Universal design is the design of products and environments to be
usable by all people, to the greatest extent possible, without the need for
adaptation or specialized design. Minimum universal design principals
can be found on SDHDA website.
35 points
Multifamily projects that have either a stand-alone Community Building
or a Community Room, the room shall be 15 square feet per occupant,
assuming 1-1/2 occupants per unit. The room shall include a fully
functioning kitchen and minimum of one unisex ADA compliant restroom.
For calculation of the square footage of the space, only areas usable by
occupants are to be included. The square footage of the kitchen,
restroom, hallways, offices or storage cannot be used to meet minimum
square footage requirement.
Energy Efficient Design Features:
20 points HERS: Project scoring a HERS index of 60 or better as verified by a
RESnet certified Rater. Lower is better.
HOF Plan
April 2020 4 of 6
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
35 points
Energy Star: Whole project certification to the latest version of Energy
Star for New Homes or Energy Star for Multifamily High Rise as verified
by a 3rd party Energy Star certified rater. Project cannot take points for
both HERS and Energy Star certifications.
10 points Installation of LED lights throughout interior and exterior of project.
Building Interior
Unit Entry Doors:
Minimum
Standards
The unit entry doors must meet the code requirement of the wall
assembly containing it. It must include a peephole with 180 degree
viewer or have a window and also a deadbolt with a 1" throw into a
reinforced jamb. Two peepholes are required on accessible units, one at
43” and one at standard height.
Unit Interior Doors:
10 points Installation of solid core interior doors throughout units.
5 points Installation of metal jambs for interior doors throughout units. This option
is only available if points are taken for solid core doors.
Flooring Covering:
Minimum
Standards
Roll carpet must meet the standards of HUD use of material bulletin 44D.
VCT, Vinyl Plank, LVT, sheet vinyl, carpet squares and other floor
coverings must meet or exceed the ASTM standards for Resilient Floor
Covering and carry a minimum of a 10 year Manufacturer Warranty. An
aluminum or vinyl “J” trim must be installed at the tub/shower transition
when sheet vinyl flooring is installed and sealed with a silicone sealant.
Laundry:
Minimum
Standards
A common laundry room must be located in each building of a project
and contain a window within or near the door. Laundry room must also
include a continuous or humidistat-controlled ventilation system.
Projects with townhomes or apartments without common laundry space
must provide washer and dryer hook-ups within each unit. Washers and
dryers must meet Energy Star qualifications.
5 points A common laundry room for each building floor and must meet above
minimum standards.
15 points A washer and dryer provided for each unit. Washer and dryers must
meet Energy Star qualifications.
Unit Bathrooms:
Minimum
Standards
Minimum of one-half bath per floor for multi-story townhomes 2 or more
bedrooms.
Minimum
Standards
Primary bath light and bathroom ventilation fan must be switched
together.
5 points
Installation of Energy Star qualified bathroom ventilation fan equipped
with a humidistat. Humidistat must be incorporated within the fan and not
at a wall switch.
15 points Installation of HVI certified HRV or ERV.
Minimum
Standards
For new construction projects that must comply with Section 504 of the
Rehabilitation Act of 1973, a UFAS compliant curbless roll-in shower
must be provided in at least 50% of the Section 504 mobility impaired
accessible units or at least one.
Appliances and Fixtures:
HOF Plan
April 2020 5 of 6
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Minimum
Standards
All provided appliances including refrigerators, freezers, washers,
dryers, dishwashers, ceiling fans, and computers must be Energy Star
Qualified.
Minimum
Standards
A minimum of a 14 cu. Ft. frost free refrigerator/freezer for all 0 or 1
bedroom units. A minimum of 18 cu. Ft. refrigerator/freezer for all 2 or
more bedroom units.
Minimum
Standards
Water Sense qualified faucets, toilets/urinals, showerheads. Kitchen
faucets are required to meet the same Water Sense GPM standards as
bathroom faucets.
5 points Range hood vented to the exterior of the building.
Window Coverings:
Minimum
Standards Window coverings or blinds shall be provided and installed.
Mechanical
Heating and Cooling:
Minimum
Standards
At a minimum high efficiency cove heat. Electric baseboard heat, PTAC’s
and VTAC’s are NOT allowed for new construction. 92% AFUE minimum
gas furnace, Heat Pumps rated at HSPF of 8 or greater with a 13.0 SEER
rating or higher (packaged or split). Programmable thermostats are
required.
Minimum
Standards
All units must have Energy Star qualified through the wall air conditioning
or central air conditioning rated at 13 SEER or better.
5 points
Energy Star qualified central air conditioning or verified AHRI certificate
with matching coil and condenser 16 SEER or better. Split systems must
be Energy Star matched.
20 points
Forced air furnace 96% or greater AFUE or Energy Star qualified Air-
source or Ground Source heat pump capable of providing heat to -15F.
Split systems must be Energy Star matched.
Note: Proposed heat pump systems used for primary heat must be submitted for approval.
Water Heating:
Minimum
Standards
A minimum of a 0.93 UEF electric water heater in each unit. Atmospheric
vented gas water heaters will not be allowed. Any central hot water systems must be submitted for approval.
10 points A gas condensing (close combustion, two-vent pipe system) or electric heat pump water heater provided for each unit.
Healthy Home
Minimum
Standards
1. Low VOC paints, stains, adhesives and sealants.
2. Formaldehyde free insulation.
3. Formaldehyde free or sealed particle board products such as
shelving, cabinets and countertops.
4. Lead detection and abatement. Only applies to rehabilitation
projects. 5. Install a passive radon system. Test for radon near completion and if 4pCi/L or higher the system must be made active and re-tested until results are below 4pCi/L.
Electrical Standards
HOF Plan
April 2020 6 of 6
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Minimum
Standards
1. Hardwired CO sensors required with installation of gas appliances. 2. The use of incandescent light bulbs is not allowed. 3. New construction or substantial rehabilitation of rental housing with more than four (4) units must incorporate the installation of broadband infrastructure.
I certify that the above indicated characteristics will be incorporated into the final working drawings
and that they must be provided prior to occupancy of the project.
I certify that the housing will meet the accessibility requirements of 24 CFR Part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multifamily
dwellings, as defined at 24 CFR Part 100.201, must also meet the design and construction
requirements at 24 CFR Part 100.205, which implement the Fair Housing Act (42 U.S.C. 3601-
3619).
Applicant Date
Architect Date
HOF Plan
April 2020 1 of 5
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 4
SINGLE FAMILY PROJECT CHARACTERISTICS
Applicant only eligible to receive up to 200 points.
Indicate if the project will include each characteristic by placing an X in the box to the left of each
applicable line item. NOTE: No points are allowed for characteristics associated with previous
phases.
Minimum standards apply to all new construction projects; however, rehabilitation or
reconstruction projects should also strive to meet these minimum standards.
General Project Scope
Minimum
Standards
Single Family Project must include individual exterior storage units at a
minimum of 8'x12' or a garage.
10 points
Single Family project that includes a carport capable of parking at least
1 vehicle. At a minimum a carport is to be constructed of weather
resistant steel, attached to footings or a thickened concrete slab, contain
a concrete slab and meet minimum code design requirements. An 8’ x
12’ shed is still required.
25 points Single Family Project that includes an attached or detached garage
capable of parking at least 1 vehicle.
Site Exterior
Parking:
Minimum
Standards
Single family home developments must contain concrete off-street
parking for two vehicles. Garage counts as parking space(s).
Sidewalks:
Minimum
Standards
A concrete sidewalk will be provided from the primary entrance door and
any accessible entry door to a public right of way.
Exterior Landscaping:
Minimum
Standards
New construction should have a minimum of a live landscaped area of
no less than 5% of the hard surfaced area of the project site. Hard
surface includes building pad as well as all sidewalks, parking lots and
other hard finish areas.
Minimum
Standards
A minimum of a 4 foot downspout extension or a 3 foot concrete splash
block that positively discharges water away from the foundation at all
downspout locations.
5 points Use of drought resistant live plants or Xeriscaping design principals or
use of rain sensor irrigation for landscaped areas.
Building(s) Exterior
Exterior Siding/Finish:
Minimum
Standards
Minimum of 15 year finish warranty 30 year substrate warranty solid
cementious or composite prefinished siding. If vinyl siding is used, it must
be a minimum of 0.44 mil thick and have a lifetime warranty. Prefinished
soffits, fascia, gutters and downspouts are required.
10 points At least 25% of building exterior finished in brick, stone, EIFS or stucco.
25 points At least 80% of building exterior finished in brick, stone, EFIS or stucco.
Roofing:
HOF Plan
April 2020 2 of 5
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Minimum
Standards
Minimum of 30 year warranty asphalt or composite shingle, 29ga metal
roofing with a 40 year film and 30 year chalk/fade warranty or a
rubberized roof system with a 30 year warranty for flat roofs.
15 points Use of UL 2218 Class 4 impact resistant shingles or 26ga UL 2218 Class
4 impact resistant metal roofing.
Windows/Doors:
Minimum
Standards
Energy Star certified exterior prefinished windows constructed of vinyl,
wood, composite or fiberglass containing Low-E Glass scored with better
than .30-U Factor (lower is better) and a SHGC of 0.42 or higher (higher
is better) by the National Fenestration Rating Council.
10 points Windows scored with a .27 U-Factor or better (lower is better) by the
National Fenestration Rating Council.
Minimum
Standards
Exterior doors shall be insulated steel or composite in a metal clad or
composite frame/brickmould. Unit entry doors without windows shall
have a peephole installed with 180 degree view. Two peepholes are
required on accessible units, one at 43” and one at standard height. All
unit entry doors must be equipped with a deadbolt with 1" inch throw into
reinforced jamb.
5 points
Installation of storm doors with a minimum 10 year structural warranty at
all exterior entry doors. Not required at entry doors between garage and
home with attached garages.
Entry:
Minimum
Standards
Exterior entry landings to be a minimum 5’-0” x 5’-0” with stairs and
railing constructed out of an exterior grade wood.
10 points Exterior entry landings and stairs with composite decking and railing with
a minimum 25-year warranty that meets the above size requirements.
15 points
Minimum of an 80 square foot deck with stairs and railing constructed
out of an exterior grade wood at one exterior entry. Additional entries to
meet the minimum standards in size and construction.
20 points
Minimum of an 80 square foot deck with composite decking and railing
with a minimum 25-year warranty at one exterior entry. Additional entries
to meet the minimum standards in size above and have composite
decking and railing.
Construction and Energy Efficient Design Features
Wall/Roof Assembly:
Minimum
Standards
Slab on grade construction to have a minimum R-10 vertical foundation
and horizontal perimeter under slab insulation per 2012 IECC. Crawl
spaces are to be sealed, insulated (min R-10) and conditioned.
Minimum
Standards
A minimum of a 6 mil or greater vapor barrier to be required under slab
on grade, basement slab or crawlspace floor.
Minimum
Standards
Foam plastics when used under any condition listed under Section R316
Foam Plastics of the 2015 IRC shall comply with the pertaining code
subsection.
Minimum
Standards
2x6 exterior wall assemblies insulated to a minimum of R-20. Roof
assembly to have minimum 12’ energy heel trusses and insulated to a
minimum of R-49. Rim/band joists to be insulated to the same R-value
as the exterior walls above. All assemblies must be constructed to the
higher of the SDHDA minimum, local adopted code or the current state
adopted IRC/IBC if no local code exists.
HOF Plan
April 2020 3 of 5
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
15 points
2x6 exterior wall assemblies insulated to a minimum of R-20 cavity
insulation and an R-5 continuous insulation or a 2x4 exterior wall
assembly insulated to a minimum of R-13 cavity insulation and an R- 10
continuous insulation.
Special and Accessible Design Features
Minimum
Standards
All projects containing more than 4 units must be compliant with Section
504 under the Rehabilitation Act of 1973. All other housing must meet
the requirements of the Fair Housing Act. Rehabilitation of housing
containing more than 15 units and costing at least 75% of replacement
cost or that is vacant must also meet Section 504.
5 points
Up to 15 points will be awarded for projects that create additional
accessible units for individuals with mobility and/or sensory impairments.
A minimum of one additional unit must be added above the federal
minimum requirements. Accessible units shall to the maximum extent
feasible and subject to reasonable health and safety requirements, be
distributed throughout projects and sites and shall be available in a
sufficient range of sizes and amenities so that a qualified individual with
handicaps’ choice of living arrangements is, as a whole, comparable to
that of other persons eligible for housing assistance under the same
program.
Total Percent of Accessible Units
5 points - 5.00% to 10.00%
10 points - 10.01% to 15.00%
15 points - 15.01% to 20.00%
10 points
15 points
15 points
Incorporation of the 7 Universal Design Principles in at least 25% of all
units or single family developments with accessible routes into and
through the home including zero step entry, not including Section 504
units. Universal design is the design of products and environments to be
usable by all people, to the greatest extent possible, without the need for
adaptation or specialized design. Minimum universal design principals
can be found on SDHDA website.
35 points
Projects that have a stand-alone Community Building, the room shall be
15 square feet per occupant, assuming 1-1/2 occupants per unit. The
room shall include a fully functioning kitchen and minimum of one unisex
ADA compliant restroom. For calculation of the square footage of the
space, only areas usable by occupants are to be included. The square
footage of the kitchen, restroom, hallways, offices or storage cannot be
used to meet minimum square footage requirement.
Energy Efficient Design Features:
20 points HERS: Project scoring a HERS index of 60 or better as verified by a
RESnet certified Rater. Lower is better.
35 points
Energy Star: Whole project certification to the latest version of Energy
Star for New Homes as verified by a 3rd party Energy Star certified rater.
Project cannot take points for both HERS and Energy Star certifications.
10 points Installation of LED lights throughout interior and exterior of project.
Building Interior
Unit Interior Doors:
10 points Installation of solid core interior doors throughout units.
HOF Plan
April 2020 4 of 5
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
5 points Installation of metal jambs for interior doors throughout units. This option
is only available if points are taken for solid core doors.
Flooring Covering:
Minimum
Standards
Roll carpet must meet the standards of HUD use of material bulletin 44D.
VCT, Vinyl Plank, LVT, sheet vinyl, carpet squares and other floor
coverings must meet or exceed the ASTM standards for Resilient Floor
Covering and carry a minimum of a 10 year Manufacturer Warranty. An
aluminum or vinyl “J” trim must be installed at the tub/shower transition
when sheet vinyl flooring is installed and sealed with a silicone sealant.
Laundry:
Minimum
Standards
Laundry space/room must be provided with washer and dryer hook-ups
and dryer venting to the exterior.
15 points A washer and dryer provided for each unit. Washer and dryers must
meet Energy Star qualifications.
Unit Bathrooms:
Minimum
Standards
Minimum of one-half bath per floor for single family dwellings containing
2 or more bedrooms.
Minimum
Standards
Primary bath light and bathroom ventilation fan must be switched
together. Bath fan cannot be used to meet mechanical ventilation code
for local jurisdictions that have adopted 2012 IECC or other codes that
require mechanical ventilation.
5 points
Installation of Energy Star qualified bathroom ventilation fan equipped
with a humidistat and timer. Humidistat must be incorporated within the
fan and not at a wall switch.
15 points Installation of HVI certified HRV or ERV.
Minimum
Standards
For new construction projects that must comply with Section 504 of the
Rehabilitation Act of 1973, a UFAS compliant curbless roll-in shower
must be provided in at least 50% of the Section 504 mobility impaired
accessible units or at least one.
Appliances and Fixtures:
Minimum
Standards
All provided appliances including refrigerators, freezers, washers,
dryers, dishwashers, ceiling fans, and computers must be Energy Star
Qualified.
Minimum
Standards
A minimum of a 14 cu. Ft. frost free refrigerator/freezer for all 0 or 1
bedroom units. A minimum of 18 cu. Ft. refrigerator/freezer for all 2 or
more bedroom units.
Minimum
Standards
Water Sense qualified faucets, toilets/urinals, showerheads. Kitchen
faucets are required to meet the same Water Sense GPM standards as
bathroom faucets.
5 points Range hood vented to the exterior.
Window Coverings:
Minimum
Standards Window coverings or blinds shall be provided and installed.
Mechanical
Heating and Cooling:
Minimum
Standards
At a minimum high efficiency cove heat. Electric baseboard heat, PTAC’s
and VTAC’s are NOT allowed for new construction. 92% AFUE minimum
gas furnace, Heat Pumps rated at HSPF of 8 or greater with a 13.0 SEER
rating or higher (packaged or split). Programmable thermostats are
required.
HOF Plan
April 2020 5 of 5
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Minimum
Standards
All units must have Energy Star qualified through the wall air conditioning
or central air conditioning rated at 13 SEER or better.
5 points
Energy Star qualified central air conditioning or verified AHRI certificate
with matching coil and condenser 16 SEER or better. Split systems must
be Energy Star matched.
20 points
Forced air furnace 96% or greater AFUE or Energy Star qualified Air-
source or Ground Source heat pump capable of providing heat to -15F.
Split systems must be Energy Star matched.
Note: Proposed heat pump systems used for primary heat must be submitted for approval.
Water Heating:
Minimum
Standards
A minimum of a 0.93 UEF electric water heater in each unit. Atmospheric vented gas water heaters will not be allowed.
10 points A gas condensing (close combustion, two-vent pipe system) or electric heat pump water heater provided for each unit.
Healthy Homes
Minimum
Standards
1. Low VOC paints, stains, adhesives and sealants.
2. Formaldehyde free insulation.
3. Formaldehyde free or sealed particle board products such as
shelving, cabinets and countertops.
4. Lead detection and abatement. Only applies to rehabilitation
projects.
5. Install a passive radon system. Test for radon near completion and if 4pCi/L or higher the system must be made active and re-tested until results are below 4pCi/L.
Electrical Standards
Minimum
Standards
1. Hardwired CO sensors required with installation of gas appliances. 2. The use of incandescent light bulbs is not allowed. 3. New construction or substantial rehabilitation of rental housing with more than four (4) units must incorporate the installation of broadband infrastructure.
I certify that the above indicated characteristics will be incorporated into the final working drawings
and that they must be provided prior to occupancy of the project.
I certify that the housing will meet the accessibility requirements of 24 CFR Part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multifamily
dwellings, as defined at 24 CFR Part 100.201, must also meet the design and construction
requirements at 24 CFR Part 100.205, which implement the Fair Housing Act (42 U.S.C. 3601-
3619).
Applicant Date
Architect Date
HOF Plan
April 2020 1 of 1
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 5
SELF SCORING WORKSHEET
RENTAL AND HOMEOWNERSHIP
APPLICATIONS
Sub
Points
Points
Available
Points
Awarded Comments
A. Local Housing Need 100
B. Income Targeting 100
1. 30% AMI Units
2. 50% AMI Units
3. 80% AMI Units
4. 115% AMI Units
C. Extended Use Commitment 10
D. Support from Local Sources 25
E. Service Enriched Housing 20
F. Percentage of Soft Costs Used for
Project Costs
40
G. Readiness to Proceed Criteria 130
1. Plans and Specifications 25
2. Site Control 25
3. Construction Financing 30
4. Permanent Financing 30
5. Zoning 10
6. Platting 10
H. Project Characteristics (Exhibit 4) 200
I. Financing Type 25
1. Guaranty or Regular Amortization 25
2. Irregular Amortization 15
3. Cash Flow Mortgage 5
TOTAL 650
PROGRAM APPLICATIONS Sub
Points
Points
Available
Points
Awarded Comments
A. Program Demand 100
B. Income Targeting 100
1. 30% AMI Units
2. 50% AMI Units
3. 80% AMI Units
4. 115% AMI Units
C. Extended Use Commitment 10
D. Support from Local Sources 25
E. Program Policy & Procedure Manual 30
F. Other Program Funds 30
G. Financing Type 25
1. Guaranty or Regular Amortization 25
2. Irregular Amortization 15
3. Cash Flow Mortgage 5
H. Partnering with Other Agencies 30
TOTAL 350
HOF Plan
April 2020 1 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 6
CONSTRUCTION STANDARDS
Housing that is newly constructed or rehabilitated with HOF funds must meet all applicable local
codes, rehabilitation standards, ordinances, and zoning ordinances at the time a building permit
is obtained from the locality and then verified once the building has been placed in service. The
design standard for any new construction or rehabilitation, within the boundaries of any local unit
of government that has not adopted an ordinance prescribing standards for new construction or
rehabilitation, pursuant to International Building Code as published by the § 11-10-5 shall be
based on the most current edition of the International Code Council, Incorporated.
Pursuant to § 11-10-7, new construction housing must meet the most current edition International
Energy Conservation Code as written by the International Code Council as amended by local
jurisdiction and all applicable local building code requirements.
For multifamily housing of 5 or more units, the housing must meet the accessibility requirements
at 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)
-(https://www.hud.gov/program_offices/fair_housing_equal_opp/disability_main ).
Developments consisting of 1 – 4 units should consider incorporating Universal Design concepts
https://www.sdhda.org/images/docu/housing-development/SDHDA%20UD%20Guidelines%20-
Final%20Posted.pdf.
Covered multifamily dwellings, as defined at 24 CFR Part 100.201, must also meet the design
and construction requirements at 24 CFR Part 100.205, which implement the Fair Housing Act
(42 U.S.C. 3601-3619) http://www.fairhousingfirst.org.
The proposed site must be suitable for the proposed project. If the site includes any detrimental
characteristic, the Applicant must provide a remediation plan and budget to make the site suitable
for the project. If any detrimental site characteristic exists on, or adjacent to the site, SDHDA may
reject the application. Detrimental characteristics may include but are not limited to: location within
1/2 mile of pipelines, storage areas for hazardous or noxious materials, sewage treatment plant,
sanitary landfill; location within 500 feet of an airport runway clear zone, 1000 feet of a railroad,
commercial property or military operations; physical barriers; unsuitable slope or terrain; location
within 1000 feet of registered historic property; or location in flood hazard area.
Proposed projects are encouraged to incorporate the features of brick, energy efficiency systems,
additional handicap-adapted units, second bathrooms (for three and four bedroom units),
community rooms, townhouse style units with an accessible bathroom on the main floor, creative
design features, and other amenities where appropriate.
Rehabilitation costs must include essential improvements including energy-related repairs or
improvements, modifications necessary to permit use by persons with disabilities, abatement of
lead-based paint hazards, and repair or replacement of major housing systems in danger of
failure. The application must describe in detail the level of rehabilitation and the cost necessary
for the exterior and for the interior by apartment unit, if applicable. If the description is not detailed,
the application may be rejected. Upon completion of rehabilitation, if applicable, all major systems
(roof, windows, heating, etc.) of the property must be in like new or new condition. If these systems
are not in need of repair at the time of application, sufficient reserves must be established to allow
HOF Plan
April 2020 2 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
for replacement of such components if the normal life span would require replacement prior to the
end of the affordability period.
Developments consisting of 20 units or more will be required to submit a physical needs
assessment before commitment of funds. The assessment must be completed by an independent
inspector. SDHDA will approve the inspector and the Applicant will pay for all costs for this service,
which may be included in the HOF financing.
Consideration will be given to functional obsolescence of the property. If it is not cost effective to
overcome structural problems, the property may not be eligible for financing. Modifications to
allow a higher level of care to elderly residents of a property are eligible if there is an identified
need for such level of care and the property is financially feasible upon completion.
The use of HOF funds for rehabilitation must maintain current affordable units or create additional
affordable units. The cost in terms of assistance to acquire and rehabilitate an existing property
may not exceed the amount of assistance to construct a new property of like quality.
Under no circumstances will the term of the HOF loan exceed the expected remaining useful life
of the property.
Depending on the size of the development, SDHDA may not require contractors to be bonded,
however, all contractors and subcontractors must carry sufficient insurance coverage.
HOF Plan
April 2020 1 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 7
HOMEBUYER ASSISTANCE
Homebuyer assistance can be structured in any number of ways to encourage the acquisition of
affordable homes. Applicants can help eligible homebuyers purchase affordable homes by
providing down payment or closing cost assistance, low-cost loans, or loan guarantees.
Applicants must have operating procedures or an administrative plan outlining the type of
assistance being provided, selection of homeowners, and overall program administration.
Applicants are eligible to receive an administrative fee for documented expenses or up to 10
percent of the HOF award, whichever is less.
Principal residence: Purchasers must occupy the property as their principal residence.
Homebuyer Education: All mortgagors receiving Homebuyer Assistance must participate in
homebuyer education, and if warranted, homebuyer counseling and credit counseling.
Eligible Property Types:
• A single-family property (one unit);
• A condominium unit;
• A cooperative unit or a unit in a mutual housing project (if recognized as
homeownership by state law); or
• A manufactured home - At the time of project completion, the manufactured home
must be (1) permanently affixed to the land by a foundation and taxed as real
property; (2) connected to permanent utility hookups; and (3) located on land that
is owned by the manufactured homeowner, or on land for which the manufactured
housing unit owner has a long-term lease for a period at least equal to the HOF
financing or first mortgage, whichever is longer.
Property Standards: All homebuyer properties must meet certain property standards.
• Acquisition: If no rehabilitation or construction is planned, the housing acquired
must meet State and local housing quality standards and code requirements. If no
such standards or codes apply, the property must meet HUD Housing Quality
Standards.
• Rehabilitation and new construction: Housing that is being constructed or
rehabilitated must meet all applicable state or local codes, rehabilitation standards
and ordinances, and zoning ordinances as further described in Exhibit 6.
Purchase price of the home shall not exceed the appraised value.
Recapture Guidelines: Homebuyers receiving HOF funds will be required to adhere to the
recapture guidelines per Section III.A.2.c. of this Plan. Recapture guidelines will be incorporated
into a deed restriction or covenant running with the land.
In determining the forms of assistance, the Applicant should consider the particular needs of the
program’s target participants. Various alternatives are discussed below.
Downpayment / closing-cost: For homebuyers who have a steady income to make monthly
payments but don’t have the means to save for the upfront costs of purchasing a home.
HOF Plan
April 2020 2 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
Gap financing: For homebuyers who have a steady income that is insufficient to cover the total
monthly payment, HOF funds can be used to reduce monthly carrying costs by providing gap
financing and reduce the principal amount borrowed. Agency may also consider an “interest
down” (providing funds directly to the lender to reduce the interest rate on the borrower’s loan.)
The gap financing, if provided as a loan, can be paid in small monthly installments (for a below-
market-rate loan) or at the sale of the property (if a deferred-payment loan).
Other guidelines: For purposes of ensuring feasible financing opportunities for homeowners,
homebuyer assistance programs utilizing HOF will adhere to the following requirements.
i. Maximum amount of HOF assistance is $20,000.
ii. For homebuyers above 80% AMI, the homebuyer’s first mortgage must be a
minimum of 80% of the acquisition cost, for homebuyers below 80% AMI, the
homebuyer’s first mortgage must be a minimum of 70% of the acquisition cost.
ADVANTAGES AND DISADVANTAGES OF VARIOUS FORMS OF ASSISTANCE
SUBSIDY PROS CONS
Forgivable
Loans
• Simple to administer
• Easy to explain
• Often necessary to reach very-low-
income
• Expensive
• No repayment possible
• May be hard to “sell” politically
• May create expectation of future
free assistance
Deferred
Payment
Loans (DPL)
• Simple to administer and explain
• No monthly payment required
• Allows for repayment
• Prevents windfall gain to borrower
if property values increase
significantly
• No payment received on a
monthly basis
• Might never be repaid if property
has low value or future
appreciation is limited
Below -Market
Rate Loans
• Provides immediate repayment
• Allows agency to act as “banker”
• Time-consuming and staff-
intensive
• Requires underwriting expertise
• Requires loan servicing
• Inefficient leverage as compared
to DPLs and forgivable loans
Loan
Guarantees
• Simple to administer (if no defaults
or if lender handles property
disposition upon default)
• High leverage
• Improves loan-to-value and
income-to-debt ratios for other
lenders
• Do little to subsidize the cost to
the homebuyer
• Shifts underwriting and default risk
from the lender
• No repayments to the program
• Can tie up funds for long periods
of time
Lease-purchase is another method of assisting with homeownership. Ownership of the property
transfers within 36 months of the homeowner signing the lease-purchase agreement, unless the
household occupying the lease-purchase unit is not eligible or able to purchase the unit at that
time. The developer then has an additional six months to identify an eligible homebuyer to
purchase the unit.
HOF Plan
April 2020 1 of 1
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 8
HOMEOWNER REHABILIATION
Applicants can apply for Housing Opportunity Funds to provide a homeowner rehabilitation
program. Applicants must have operating procedures or an administrative plan outlining the type
of assistance being provided, process for selection of homeowners, and overall program
administration. Applicants are eligible to receive an administrative fee for documented expenses
or up to 10 percent of the HOF award, whichever is less.
Applicants must have established standard accounting practices including internal controls and
fiscal accounting procedures to track agency and program budgets by revenue sources and
expenses. Applicants must also have available cash flow to effectively operate their programs
since HOF funding is a reimbursement program.
Although the total cost of the rehabilitation work to the home is not limited by SDHDA, the amount
of HOF homeowner rehabilitation funding assistance provided to each homeowner may not
exceed $10,000 without approval from SDHDA.
Households must own and occupy a home, as their principle residence. Subsequent to the
completion of HOF funded rehabilitation activities, continued ownership is required and is subject
to recapture provisions that will be incorporated into loan documents.
HOF funding can be provided to the homeowners in the form of an amortizing loan, conditionally-
forgivable loan (no more than 1/60th of loan forgiveness for each month the person owns and
maintains the property as their primary residence) or as a deferred loan.
Homeowners receiving HOF homeowner rehabilitation assistance must execute a Promissory
Note and Mortgage and Security Agreement securing the property as collateral for the financing
during the affordability period. Homeowners must also sign an agreement with the Applicant
detailing applicable program processing procedures and requirements.
In the event that the homeowner sells the assisted property during the affordability period, the
portion of assistance that was not repaid or forgiven at the time of sale or transfer of the property
will be repaid to SDHDA.
Rehabilitation work must primarily be to bring the home into compliance with property standards,
improve energy efficiency, and/or make the home more accessible.
The Applicant must conduct an assessment of the proposed property to be rehabilitated and
coordinate appropriate work to be completed. Applicant must make the determination that all the
work is necessary and can be completed with the funds committed and ensure that the
homeowner is qualified based on eligibility criteria. The Applicant must coordinate the
rehabilitation activity, facilitate the execution of all required documents, ensure that work is
performed in accordance with all required property standards, and submit required project
documentation to SDHDA for reimbursement of expenses. Applicants may use contractors, their
own work crews (force account labor), or self-help program to perform the rehabilitation work.
Rehabilitation work may not begin without SDHDA’s review and approval of the project.
HOF Plan
April 2020 1 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
EXHIBIT 9
HOMELESSNESS PREVENTION
Applicants can apply for Housing Opportunity Funds to provide homelessness prevention
activities assisting people to quickly regain stability in permanent housing. Applicants must
have operating procedures or an administrative plan outlining the type of assistance being
provided, selection of participants, and overall program administration. Applicants are
eligible to receive an administrative fee for documented expenses or up to 10 percent
(10%) of the HOF award, whichever is less, except for HOF funds requested for
acquisition, new construction, or rehabilitation costs.
Applicant’s operating policies and procedures must include:
• Evaluating individual and household eligibility for assistance, defining who qualifies
as at- risk of becoming homeless;
• Assessing, prioritizing, and reassessing individuals’ and households’ needs for
assistance, taking into consideration other available resources and support
networks;
• Coordinating among other service providers;
• Determining and prioritizing which individuals and households receive
homelessness prevention assistance;
• Determining what percentage or amount of rent and utilities each program
participant must pay while receiving assistance;
• Determining how long a program participant will be provided assistance and
whether that assistance should be adjusted over time; and
• Determining the type, amount, and duration of assistance that may be provided to
a program participant, which could include maximum amount of assistance,
maximum number of months, or maximum number of times the program participant
may receive assistance;
Applicants must have established standard accounting practices including internal controls and
fiscal accounting procedures to track agency and program budgets by revenue sources and
expenses. Applicants must also have available cash flow to effectively operate their programs
since HOF funding is a reimbursement program.
Eligible Applicants must have (1) prior experience serving individuals and households at-risk of
or experiencing homelessness, and (2) staff with expertise in case management skills.
Applicants will be required to utilize the Homeless Management Information System (HMIS)
operated by SDHDA.
HOF will be awarded to Applicants based upon the following:
1. Need for the funding to provide the corresponding services and assistance;
2. Plan for distribution of the funds in an effective and efficient manner;
3. Collaboration efforts with other agencies, and
4. Applicants’ prior experience with this type of program.
HOF may be utilized for the following activities:
• Costs for new construction or rehabilitation of a building that will be used to provide
homelessness prevention services
HOF Plan
April 2020 2 of 2
P:\p-hd\development\Housing Opportunity Fund\Planning\2020-2021\2020-2021HOFPlanAsPresentedtoBoard.docx
• Payment of operating expenses of the agency providing the homelessness
prevention services
• Payment of rental arrears.
• Temporary rent or utility assistance
• Rental application fees.
• Security deposits equal to no more than two month’s rent.
• First and last months’ rent.
• Standard utility deposits.
• Utility payment.
• Moving costs - truck rental or hiring a moving company. Assistance may also
include payment of temporary storage fees.
• Service costs - Housing search and placement, housing stability case
management, mediation activities, legal services necessary to resolve housing
issues, costs necessary to obtain legal identification documents, and credit
repair/counseling services.
The costs of homelessness prevention are only eligible to the extent necessary to help the
program participant regain stability in their current permanent housing or move into other
permanent housing and achieve stability.
Applicants must ensure that assistance is only provided for housing units that meet rent
reasonableness for their market area.
Each program participant receiving rental assistance must have a legally binding written lease for
the rental unit.
Workforce Housing
Conceptual
Conceptual Exterior Elevations
Where Ae We Going Tomorrow?
How Do We Get There?
South Dakota Housing Opportunity Fund
•Homeownership
•Eligible costs = land, building acquisition with rehab, demolition, site
improvements, utility connections, development subsidy for appraisal
gaps.
•Qualifications = homebuyers principal residence, homebuyer
education
•Selling Price = appraised value
•Period of Affordability =5 years for under $15,000
10 years for over $15,000
SDHDA affordability deed restriction
South Dakota Housing Opportunity Fund
•Income Targets = 80% Area Median Income
•Price Limits –Brookings County
•1 Bedroom (600 sq. ft.) = $140,000
•2 Bedroom (750 sq. ft.) = $171,500
•3 Bedroom (900 sq. ft.) = $202,500
•4 Bedroom (1050 sq. ft.) = $222,700
South Dakota Housing Opportunity Fund
•Application Process
•Project Selection Criteria
•Other Requirements
•Fair Housing and Equal Opportunity
•Lead-Based Paint
•Conflict of Interest
•Debarment and Suspension
https://www.sdhda.org/housing-development/housing-opportunity-fund
Questions?
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 22-0057,Version:1
Presentation: Brookings City & County Government Center Bioretention Area
Summary:
The installation of a bioretention basin between the two parking lots south of the Brookings City &
County Government Center was started in summer 2021 for a graduate design project as a
collaboration between the City and SDSU Landscape Architecture and Natural Resources
Management. This project will help decrease stormwater runoff and highlight the benefits of native
plants in stormwater management design.
Attachments:
Memo
PowerPoint
City of Brookings Printed on 2/10/2022Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Robin Buterbaugh, Sustainability Council Member
Council Meeting: February 15, 2022
Subject: Brookings City & County Government Center Bioretention
Area
Presenter: Robin Buterbaugh, Sustainability Council Member
Summary:
The installation of a bioretention basin between the two parking lots south of the
Brookings City & County Government Center was started in summer 2021 for a
graduate design project as a collaboration between the City and SDSU Landscape
Architecture and Natural Resources Management. This project will help decrease
stormwater runoff and highlight the benefits of native plants in stormwater management
design.
Background:
Urban development has increased the amount of stormwater flowing th rough Brookings
after each rainstorm due to an increase in impervious surfaces such as roofs, parking
lots, and roads. This has increased both the volume of water and the quality of water
entering the storm system and waterways. Green stormwater infrastructure (GSI), like
the bioretention basin, uses plants and soil to reduce the amount of runoff and
contaminants by slowing the water down, allowing it to infiltrate, and filtering
contaminants. The plants filter the water to reduce pollutants, prevent erosion, and
infiltrate more water. Native plants increase biodiversity by providing habitat, food, and
shelter for birds and pollinators. The goal of this project is to install the bioretention
basin, monitor the performance of the stormwater management, and showcase native
plants in the design.
Item Details:
Project elements added to the detention area to increase the infiltration of stormwater,
decrease the peak volume of stormwater entering the storm sewer, filter contaminants,
and increase the biodiversity of the site:
1) The earth berm with stone protection slows water from entering the storm sewer
by temporarily ponding water behind the berm.
2) The stone channel with underdrain pipe directs water into the inlet drain after
ponding and infiltration so water is not ponding more than 24-48 hours.
3) Native plants around the channel utilize water to increase infiltration, filter parking
lot contaminants, and stabilize soil. The native plants chosen for the site have
different water requirements depending on location. Plants which thrive in
medium-wet soils are planted near the center stone channel where more water
will pond. Plants which tolerate some ponding, but otherwise grow in dry soil, are
planted higher on the bank of the basin, and plants which grow well in dry
conditions are planted around the perimeter. Plants were chosen for aesthetic
properties and to extend the bloom time from early spring through fall to provide
a food source for pollinators.
The bio-retention basin will require some maintenance and management, including
watering during initial establishment, monitoring for and removing weeds as the mulch
layer deteriorates, and mowing around the perimeter.
Native plants benefit from removal of dead plant material by cutting, mowing, or burning.
Standing plant material can remain during the winter for food and habitat and be
removed in spring by cutting back the plants and removing the dead plant material.
The site could be burned every 3-5 years; however, that is optional.
Legal Consideration:
None
Strategic Plan Consideration:
Sustainability – Green stormwater infrastructure is a sustainable way to manage
stormwater, as it decreases impervious surfaces and increases native habitat and
biodiversity using natural low-cost infrastructure solutions.
Financial Consideration:
Funding for this project came from stormwater funds.
The site preparation work was contracted by the City and put up for bids. The site work
included digging a trench and installing an underdrain pipe, incorporating a dry stone
channel and stone berm, removal of grass by spraying, and laying down mulch. The
quote accepted by the City came from Kerry’s Landscaping and was $9,550.
The cost for the plant material was $1,278.50 for 412 plants.
Options and Recommendation:
This is a presentation to City Council for informational purposes and discussion.
Supporting Documentation:
Presentation
Installation of a Bioretention Garden for Demonstration
and Hydrologic Monitoring
Robin Buterbaugh, Lora Perkins, John McMaine, Jeremiah Bergstrom
Project Background
•Stormwater systems manage stormwater runoff in communities
•The increase in impervious surfaces such as roofs, parking lots, and roads has increased both the volume of
water entering the system and quality of water entering the storm system and waterways
•Green stormwater infrastructure (GSI) uses plants and soil to reduce the amount of runoff
and contaminants by slowing the water down, allowing it to infiltrate, and filtering
contaminants.
•Bioretention basin
•Plants filter the water to reduce pollutants, prevent erosion, and infiltrate more water
•Native plants increase biodiversity by providing habitat, food, and shelter for birds and pollinators.
•Goal—install and monitor a bioretention basin, monitor the performance of the stormwater
management, showcase native plants in design
Project Site
•Current site: 23,000 sq ft X 1 inch X
0.62 = approximately 14,000 gallons of
water from 1 inch of rainfall
•For every 100 sq ft, 62 gallons of water runs off in a
1 inch rain, so the total sq ft is multiplied by 0.62 to
determine the gallons of water.)
•Annual runoff = volume of water x inches of
rain/year
•14,000 gallons x 26 inches =
approximately 364,000 gallons of
runoff per year.
Stormwater
Management
Purpose of the detention area
•Capture stormwater runoff
from the parking lots
•Allow the water to infiltrate in
the detention area
•Direct excess water into the
storm sewer through the inlet
in the south side of the site
Stormwater Management and Monitoring
Project elements
•Earth berm with stone protection
•Slows water from entering storm sewer by temporarily
ponding water behind berm
•Decreases peak volume of storm water
•Stone channel with underdrain pipe
•Directs water into inlet drain after ponding and
infiltration.
•Native plants around channel
•Utilize water to increase infiltration and stabilize soil
•Filter contaminants
•Prevent erosion
•Increase biodiversity
Planting Design
Blue flag iris
Big bluestem
Installation
Objectives
•Increase awareness of the benefits of green
stormwater infrastructure (GSI)
•Highlight the beauty and function of native
plants
•Provide education and outreach
•Sign at the site
•What a bioretention garden is
•How it functions
•How the plants benefit the system
•Workshops for the public about how
bioretention gardens work and how to
incorporate green stormwater infrastructure
on both large and small scales
Acknowledgements
City of Brookings Engineering Dept and Parks Dept
SDSU Landscape Architecture and LA students
SDSU Ag and Biosystems Engineering and ABE
students
SDSU Natural Resources Management
Bryanna Chipley
Layne Buterbaugh
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 22-0081,Version:1
Discussion on the South Dakota State University Economic Impact Report.
Summary:
In January, the Brookings Economic Development Corporation held a community leader’s roundtable
discussion. South Dakota State University presented the attached impact report. A request was
made to give the report details to the Council and public at the February Study Session.
Attachments:
Memo
SDSU FY 2019 Economic Impact
Board of Regents Economic Impact
SDSU Economic Impact Presentation
City of Brookings Printed on 2/10/2022Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Paul Briseno, City Manager
Council Meeting: February 15, 2022
Subject: South Dakota State University Economic Impact Report
Presenter: Daniel Scholl, Vice President, Research and Economic
Development
Barry Dunn, President, South Dakota State University
Summary:
In January, the Brookings Economic Development Corporation held a community
leader’s roundtable discussion. South Dakota State University presented the attached
impact report. A request was made to give the report details to the Council and public
at the February Study Session.
Background:
The South Dakota Board of Regents commissioned an Economic Impact Report
(attached). South Dakota State University attained additional information (attached).
Both reports note the economic impact on the state and Brookings County.
Item Details:
Members of the South Dakota State University will present the findings of the Economic
Impact Report to the City Council and the public for information purposes.
Legal Consideration:
None
Strategic Plan Consideration:
Economic Growth – As a community partner the economic success of SDSU positively
impacts the city/county of Brookings.
Financial Consideration:
There are none at this time.
Options and Recommendation:
This is a presentation to City Council for informational purposes and discussion.
Supporting Documentation:
SDSU FY 2019 Economic Impact
Board of Regents Economic Impact
SDSU Economic Impact Presentation
FY 2019
ECONOMICIMPACT REPORT
2021
outh Dakota
State University:
Gets it Done
S
Prepared by
Table of
Contents
EXECUTIVE SUMMARY 3
INTRODUCTION TO SOUTH DAKOTA STATE UNIVERSITY 3
CASE STUDY: PRECISION AGRICULTURE STRENGTHENS SD’S FARMS 5
ABOUT THE STUDY 6
SDSU CONTRIBUTES TO THE LOCAL AND STATEWIDE ECONOMIES 7
CREATING AND SUSTAINING JOBS THROUGHOUT SOUTH DAKOTA 8
GENERATING LOCAL AND STATE TAX REVENUES 9
SDSU RESEARCH 10
SDSU ALUMNI 11
SDSU ATHLETICS 11
CASE STUDY: SDSU ADDRESSES THE RURAL OPIOID CRISIS 12
SDSU GIVES BACK 13
CONCLUSION 14
SDSU by the Numbers
$936.3 Million
Generated in Economic Impact
4,848 Jobs
Supported and Sustained
$29.3 Million
in State and Local Taxes Generated
$100.8 Billion
Direct Impact Generated by
SDSU Alumni throughout
the Course of their Careers
118
94
35
97
Undergraduate Programs
Graduate Programs
Certificate Programs
Minors
11,518
Students
18.7%
first-generation
college students
56.3%
undergraduate
students from
South Dakota
88.9%
classes taught
by faculty
2,596
Graduates
Annually
Founded in 1881 as South Dakota’s land-grant university¹, South
Dakota State University (SDSU) supports the backbone of the
state’s ranching and farming economy. SDSU’s people-focused
mission has propelled its growth into a powerhouse of research
and training for the next generation of South Dakotans on the
forefront of knowledge-based sectors. SDSU educates the
“do-ers” of the state — the pharmacists, the nurses, and the
construction managers that provide core services, man the fuel
industries, and strengthen communities. With more than 11,000
students and 2,600 graduates annually, SDSU is making its mark
throughout the state.
SDSU takes its mission and vision as a land-grant university to
heart. The university’s Lohr College of Engineering seeks to
create safer infrastructure throughout the state, and the Animal
Disease Research and Diagnostic Laboratory supports South
Dakota’s ranching industry and is at the forefront of developing
vaccines and testing livestock for disease. The lab keeps herds
healthy and ranchers in business. Precision Agriculture at SDSU
is propelling farmers into the future, fueling the economy — and
preserving the traditional South Dakota way of life. Through the
Wokini Initiative, the university develops opportunities for
research and collaboration with tribal colleges and provides
educational support and increasing opportunities for financial
aid for American Indian students.
As the largest employer in Brookings, SDSU is an integral part of
the community. SDSU serves as a cultural hub for Brookings,
boasting a new theater that hosts national music tours and is
used by local elementary students for their recitals.
“Our nearly 100,000 alumni are engineers, nurses, pharmacists,
farmers, and teachers. We are the ‘do-ers’ of South Dakota.”
Barry Dunn
SDSU President
Introduction
¹A land-grant university is an institution of higher education in the United States designated by a state to
receive the benefits of the Morrill Acts of 1862 and 1890. Signed by Abraham Lincoln, the 1862 Morrill Act
started to fund educational institutions by granting federally controlled land to the states for them to sell, raise
funds, establish, and endow “land-grant” colleges. The organizational mission of these institutions of higher
education is to focus on the teaching of practical agriculture, science, military science, and engineering
"without excluding other scientific and classical studies."
South Dakota State University Mission
South Dakota State University offers a rich academic experience in an
environment of inclusion and access through inspired, student-centered
education, creative activities and research, innovation and engagement
that improve the quality of life in South Dakota, the region, the nation
and the world.
Case Study:
SDSU’S PRECISION AGRICULTURE
MAJOR STRENGTHENS SD’S FARMS
SDSU’s first-in-the-nation Precision Agriculture major is setting the pace for how a major university
can strengthen the farming industry — a key driver of the South Dakota economy — with practical
knowledge, application, and strong industry partnerships.
Farming is changing fast with the emergence of new technology. Precision agriculture provides the
practical know-how needed to integrate computer technology with farm equipment, farm sensors,
GPS navigation, satellite imagery, and drone imagery to increase yield and profitability. And SDSU
is producing the college graduates, applied research, and extension expertise to help farmers use
precision agriculture to thrive in the 21st century and beyond.
SDSU's approach to precision agriculture stands out because it is designed to evolve as industry
needs change. To make this vision a reality, Raven Industries, a successful and highly diversified
technology company, partnered with SDSU to build the Raven Precision Agriculture Center, which
opened with a ribbon-cutting ceremony in September 2021.
The center creates an innovation ecosystem and economic engine that connects the agricultural
industry with SDSU students and faculty. Dan Rykhus, President and CEO of Raven Industries,
knows first-hand the power that can be unleashed when a major university bridges the gap
between academia and industry. “The partnership between Raven and SDSU is a beautiful melding
of interest and capacity. Raven supports the expansion of precision agriculture at SDSU because it
leverages economic development in South Dakota and can solve our design talent and field
support constraints.” This strong partnership between Raven and SDSU is a prime example of how
the university stays focused and aligned with the real-world needs of a state’s economy.
“There’s no better place to advance precision agriculture
than in South Dakota — the heart of the agricultural
industry. SDSU wants to be cutting edge and so do we.”
Dan Rykhus
President and CEO, Raven Industries
In July 2021, the South Dakota Board of Regents (SDBOR) engaged Parker Philips Inc. to measure the economic
contribution of public higher education overall and of each of South Dakota’s six universities. The goal of this
analysis is to tell SDSU’s story from a numbers and narrative perspective. To develop this report Parker Philips
gathered student, financial, and employment data about SDSU, visited and toured the campus, conducted
interviews, and researched secondary data and information to inform the writing and key messages.
The primary tool used in the performance of this study is the input-output model and data set developed by
IMPLAN Group LLC. Financial data used in this study was obtained from South Dakota and included the following
data points: operational expenditures, capital expenditures, and payroll and benefits for employees for FY 19.
Secondary data was used to estimate spending by visitors (day and overnight) and students (undergraduate and
graduate) exclusive of tuition and fees. Additional information on the methodology and assumptions used to
complete this study can be found in Appendix B.
The impact presented in this analysis is broken down into three categories: direct impact, indirect impact, and
induced impact. The indirect and induced impacts are commonly referred to as the “multiplier effect.” The graphic
below provides an overview of the types of impact detailed in this report.
Financial
& Data
Gathering
Campus Visits
& Key
Stakeholder
Interviews
Analysis
&
Reporting
About the Study
SDSU contributes to the local and statewide economies through its expenditures on operations, capital projects,
wages, the spending of students off campus, and the spending of visitors to campus. The direct, day-to-day
expenditures of SDSU, combined with the student and visitor spending, cause a ripple effect throughout the
statewide economy.
The total economic impact of SDSU in FY 19 totaled $936.3 million. This contribution to the local and statewide
economies is a point-in-time snapshot depicting how the expenditures of SDSU and its faculty, staff, students,
and visitors make an impact.
Data Source:
Study Type:
Geography:
Study Year:
Methodology:
SOUTH DAKOTA STATE UNIVERSITY STUDY PROFILE
South Dakota Board of Regents and South Dakota State University
Economic Contribution Analysis
South Dakota
Fiscal Year 2019 (FY 19)
IMPLAN
SDSU Contributes to the State and Local Economy
Operations and Spending Contribution
SDSU operations and capital spending in FY 19 contributed a total of $836.4 million. SDSU’s
operations generated $513.7 million in direct economic impact, $149.1 million in indirect economic
impact, and $173.6 million in induced economic impact.
Student Spending Contribution
SDSU students contributed a total of $78.5 million to the state’s economy in FY 19 as a result of their
spending. They generated $50.8 million in direct economic impact, $13.5 million in indirect economic
impact, and $14.1 million in induced economic impact.
Visitor Spending Contribution
Visitor spending at SDSU in FY 19 contributed a total of $21.5 million. Visitors to SDSU generated
$13.0 million in direct economic impact, $4.5 million in indirect economic impact, and $3.9 million in
induced economic impact.
SDSU’s Combined Economic Impact (FY 19)
$936,291,701
total combined
economic impact
Total Direct Spending:
Total Indirect Spending:
Total Induced Spending:
$577,502,522
$167,206,533
$191,582,646
$21,468,363
total visitorspending
$12,999,902
$4,525,017
$3,943,444
Direct Spending:
Indirect Spending:
Induced Spending:
$78,457,252
total studentspending
$50,837,986
$13,539,876
$14,079,390
Direct Spending:
Indirect Spending:
Induced Spending:
$836,366,086
total operationsspending
$513,664,634
$149,141,640
$173,559,812
Direct Spending:
Indirect Spending:
Induced Spending:
Source: Parker Philips using IMPLAN with data from SDBOR and SDSU
SDSU supports a total of 4,848 full- and part-time jobs throughout the state. Beyond the direct jobs at the university,
indirect and induced jobs include construction for campus projects, retail, restaurants, daycare, real estate, and
banking — to name a few.
Creating & Sustaining JobsThroughout South Dakota
South Dakota State University Employment Contribution (Jobs, FY 19)
4,848
total combined
contribution (jobs)
Total Direct Contribution:
Total Indirect Contribution:
Total Induced Contribution:
2,601
981
1,266
202
total visitorcontribution (jobs)
147
29
26
Direct Contribution:
Indirect Contribution:
Induced Contribution:
733
total studentcontribution (jobs)
564
76
93
Direct Contribution:
Indirect Contribution:
Induced Contribution:
3,913
total operationscontribution (jobs)
1,890
876
1,147
Direct Contribution:
Indirect Contribution:
Induced Contribution:
Source: Parker Philips using IMPLAN with data from SDBOR and SDSU
Jobs Generated by University Operations
SDSU operations supported and sustained a total of 3,913 jobs: 1,890 direct jobs, 876 indirect jobs, and
1,147 induced jobs.
Jobs Generated by Student Spending
Students from SDSU supported and sustained a total of 733 jobs as a result of their spending: 564 direct
jobs, 76 indirect jobs, and 93 induced jobs.
Jobs Generated by Visitor Spending
Visitors to SDSU supported and sustained a total of 202 jobs as a result of their spending: 147 direct
jobs, 29 indirect jobs, and 26 induced jobs.
Based on analysis by industry sectors, other jobs supported by the university’s economy outside of the higher-
education and healthcare sectors include jobs in real estate, retail, and services (e.g., restaurants, child-care
centers, and entertainment).
SDSU’s employees, suppliers, and related constituencies contribute to the local and statewide tax bases. In FY 19,
the university contributed an estimated $31.6 million ($17.4 million direct and $14.2 indirect and induced) through
local spending (operational, capital, students, and visitors) as well as direct and indirect support of jobs. At the
state and local levels, SDSU contributes to the tax bases through its purchasing. Specific taxes include employee
and employer contributions to state and local social-insurance funds, sales and use taxes, personal property taxes,
taxes paid on motor-vehicle licenses, and payments of fines and fees.
Generating Local and StateTax Revenues
South Dakota State University State and Local Tax Impacts (FY 19)
$3,344,538
$1,054,073
$1,713,924
$6,112,535
Source: Parker Philips using IMPLAN with data from SDBOR and SDSU
DIRECT
INDIRECT
INDUCED
TOTAL
SUB COUNTY
GENERAL
SUB COUNTY
SPECIAL
DISTRICTS COUNTY STATE TOTAL
$3,834,694
$1,210,831
$1,968,993
$7,014,518
$1,543,211
$480,416
$780,732
$2,804,359
$8,700,571
$2,660,756
$4,292,088
$15,653,415
$17,423,014
$5,406,076
$8,755,737
$31,584,827
Research expenditures increased by more
than $4 million from $63.5 million in fiscal
year 2018 to $67.6 million in fiscal year 2019.
This 6.5% increase moves the university
closer to its Imagine 2023 goal of increasing
research productivity by 40%.
SDSU ranked 182nd for total research and
development expenditures in 2019 according
to the National Science Foundation.
SDSU received a grant in 2020 from NIH to
study using microparticles in treating
tuberculosis. In 2021, they received an NIH
grant to research rare genetic mutations in an
enzyme that will help patients with genetic
conditions.
In FY 19, research expenditures at SDSU generated $104.5 million in
economic impact, supported 603 jobs, and generated $2.2 million in
local and state tax revenue.
SDSU Research
The Division of Research and Economic Development at SDSU works closely with university researchers, business
leaders, and other sponsors to promote faculty expertise aimed at solving real-world problems in society and
industry. SDSU has positioned itself as a leader in agriculture and precision agriculture, remote sensing, and life
sciences. The research enterprise also capitalizes on expertise in digital technology related to agriculture and
resource management.
The precision agriculture initiative brings together experts from computer science, statistics, engineering, remote
sensing, and agriculture, as well as industry partners to increase the profitability and sustainability of agriculture.
SDSU Research Impacts (FY 19)
320
152
131
603
Source: SDBOR with analysis by Parker Philips, Inc.
DIRECT
INDIRECT
INDUCED
TOTAL
$59,143,038
$25,425,702
$19,891,388
$104,460,128
$692,742
$618,453
$901,275
$2,212,470
EMPLOYMENT
JOBS
ECONOMIC
OUTPUT
STATE & LOCAL
TAX IMPACT
SDSU Research Commercialization Activity
FY 17
FY 18
FY 19
FY 20
FY 21
TOTAL
PATENTS
ISSUED
LICENSE
AGREEMENTS
SIGNED
LICENSE
AGREEMENTS SIGNED
WITH STARTUPS
INVENTION
DISCLOSURES COMING
FROM RESEARCH
PATENTS
FILED
12
10
10
3
3
38
5
6
1
0
0
12
7
10
2
2
4
25
4
3
0
0
0
7
51
24
23
17
12
127
Source: SDBOR and SDSU
Research commercialization activity at SDSU in FY 19 resulted in 23
invention disclosures, 1 patent issue, and 2 signed licensing agreements.
SDSU received an NSF
grant in 2021 to study
lithium for use in
batteries. The research
has implications for
powering electric cars
and other appliances.
Like many states, South Dakota is experiencing a shortage of healthcare professionals. In nursing alone, South
Dakota experienced a net loss of more than 2,500 RNs over 2019 and 2020 as nurses retired, left the
profession altogether, or moved out of the state, according to the South Dakota Board of Nursing. Healthcare
shortages are a particular challenge in rural states like South Dakota, where those who live in healthcare
“deserts” have little to no access to face-to-face interaction with a nurse or other healthcare professionals.
SDSU leads the way in addressing this healthcare challenge head-on. Its work to address the opioid crisis,
which hits rural residents without access to healthcare particularly hard, is changing outcomes. SDSU formed
START — Stigma, Treatment, Avoidance, and Recovery Time — an
innovative consortium that delivers services to three counties in
rural South Dakota: Brookings, Codington, and Hughes.
START-SD brings together faculty from SDSU’s public health,
pharmacy, and nursing programs; the Center for Family Medicine
and other Avera health providers; and a range of addiction and
support counseling providers. Rural county residents can access
these services via telehealth or in-person visits.
During 2020, START delivered services to more than 1,000
patients in the tri-county area. SDSU’s world-class faculty are
lending their talents to directly address the opioid crisis in rural
South Dakota and ensuring all South Dakotans — regardless of
ZIP code — have the health care access they need to meet their
full potential.
Case Study:
SDSU ADDRESSES THE RURAL OPIOID CRISIS
“Rural areas are hit hard by substance use disorders, but they have less access
to services. If we all work together we can remove that gap and help every
person be a more functioning member of society.”
Dr. Aaron Hunt
START-SD Program Coordinator
In 2019, nearly 2,600 students graduated from SDSU. Thanks to partnerships with employers both locally and
statewide, SDSU has built an intentional pipeline to the job market and a strong demand for talent and
graduates at businesses big and small. Nearly 52% of SDSU graduates plant their roots in South Dakota,
contributing to the state and making a positive economic impact after graduation. The direct impact of the
total average wage earned by undergraduate and graduate alumni of SDSU on the economy over a 40-year
career totals $100.8 billion.
The earnings of the 36,664 alumni from SDSU living and
working in South Dakota over the course of their 40-year
careers will total $100.8 billion, support and sustain a
cumulative total of 670,964 jobs, and generate $4.5 billion
in fiscal impacts at the local, state, and federal levels.
SDSU Alumni
SDSU Athletics
Gameday on the gridiron for the Jacks is an
event for the community. In 2019, a total of
164,412 people attended Jackrabbits
football games. Collegiate sports are a major
part of life at SDSU and for the Brookings
community.
Homecoming at SDSU is Hobo Week — a
tradition that goes back to 1912. Activities all
week include “bumming a meal,” when
students go into Brookings and the town
hosts students for dinner; a bonfire; and a
pep rally. Alumni, students, and local
residents watch the homecoming football
game, with “The Pride of the Dakotas”
performing a halftime show.
#GOJACKS
SPORTS AT THE NCAA DIVISION I
LEVEL.
REGULAR AND POST-SEASON
LEAGUE CHAMPIONSHIPS
CLAIMED IN 8 DIFFERENT SPORTS
SINCE 2009-10.
SDSU TEAMS COMPETE IN THE
SUMMIT LEAGUE.
FOOTBALL TEAM COMPETES IN
THE MISSOURI VALLEY FOOTBALL
CONFERENCE OF THE FOOTBALL
CHAMPIONSHIP SUBDIVISION.
WRESTING TEAM COMPETES IN
THE BIG 12.
EQUESTRIAN TEAM COMPETES
UNDER THE UMBRELLA OF THE
NATIONAL EQUESTRIAN
ASSOCIATION.
OR HIGHER GPA OF STUDENT-
ATHLETES ACROSS MORE THAN
70 MAJORS.
19
34
16
1
1
1
3.2
Charitable Giving and Volunteer Impact of SDSU
The community around SDSU benefits from SDSU faculty, staff, and students. Based upon assumptions derived
from the U.S. Census Bureau and the Points of Light Foundation regarding donation amounts and volunteerism
rates by age, income level, and employment status, it is estimated that staff, faculty, and students give $1.4 million
annually in charitable donations and volunteer for nearly 187,241 hours, valued at $4.4 million. In FY 19, the
combined impact of charitable giving and volunteerism totaled $5.8 million. These benefits were in addition to the
$936.3 million annual economic impact. Some examples of how SDSU gives back to the community include:
Staff and Faculty Charitable Giving
Student Charitable Giving
Total Charitable Giving
Staff and Faculty Volunteerism Hours
Student Volunteerism Hours
Total Volunteerism Hours
Value of Staff and Faculty Volunteerism Hours
Value of Student Volunteerism Hours
Total Value Volunteerism Hours
Grand Total
SDSU Gives Back
Each year, more than 500 students, staff, and faculty participate in State-a-Thon — a dance marathon funding
hospital stays for children through Children’s Miracle Network.
One Day for STATE raises money through the SDSU Foundation. Calling on alumni, staff, and students, the
program provides donors the ability to directly support scholarships, student travel, and athletic teams they
feel passionate about. In 2020, more than 4,800 donors — including 484 students — raised over $1.6 million.
$971,385
$429,046
$1,400,431
26,219
161,022
187,241
$617,727
$3,793,670
$4,411,397
$5,811,828
South Dakota State University is the foundation of the Brookings community, from Jackrabbits football games
to national concert tours in the performing arts center. SDSU generated a $936.3 million impact, making it an
economic driver not just of South Dakota but of the greater Plains region. As a land-grant university, SDSU’s
commitment to all South Dakotans makes it a community of those pushing South Dakota forward, combining
educational opportunities with world-class research. South Dakota State University guides the next generation
of South Dakotans into careers that serve the public and better the well-being of the state.
Conclusion
Appendix A: Terms & Definitions
Study Year
Dollar Year
Total Economic Output/
Economic Impact
Direct Economic Impact
Indirect Economic
Impact
Induced Economic
Impact
Multiplier Effect
Government Revenue/
State and Local Tax
Impact
Direct Employment
Indirect Employment
Induced Employment
FY 2019
Presented in 2019 dollars
Includes organizational spending on operations, capital expenditures, labor income expenditures,
and value added to the economy as a result of expenditures made by an organization. It is the
combined impact of direct, indirect, and induced impacts.
All direct expenditures made by an organization due to its operating expenditures. These include
operating expenditures, capital expenditures, and pay and benefits expenditures.
The indirect impact includes the impact of local industries buying goods and services from other
local industries. The cycle of spending works its way backward through the supply chain until all
money is spent outside of the local economy, either through imports or by payments to value
added (multiplier effect).
The response by an economy to an initial change (direct effect) that occurs through re-spending
of income received by a component of value added. IMPLAN’s default multiplier recognizes that
labor income (employee compensation and proprietor income components of value added) is not
lost to the regional economy. This money is recirculated through household spending patterns
causing further local economic activity (multiplier effect).
The multiplier effect is the additional economic impact created as a result of the organization’s
direct economic impact. Local companies that provide goods and services to an organization
increase their purchasing by creating a multiplier (indirect/supply-chain impacts). Household
spending generated by employees of the organization and the organization’s suppliers create a
third wave of multiplier impact (induced/household-spending impacts).
Government revenue or tax revenue that is collected by governmental units at the state and local
levels in addition to those paid directly by an organization. This impact includes taxes paid directly
by the organization itself, employees of the organization, and vendors who sell products to the
organization and at the household level.
Total number of employees, both full-time and part-time, at the organization based on total jobs,
not FTEs.
Additional jobs created as a result of an organization’s economic impact. Local companies or
vendors that provide goods and services to an organization increase their number of employees
as purchasing increases, thus creating an employment multiplier.
Additional jobs created as a result of household spending by employees of an organization and
the employees of vendors. This is another wave of the employment multiplier.
Appendix B: Data & Methods
Data used to complete the contribution analysis was provided by the South Dakota Board of Regents and the university.
Data supplied included operating expenditures, capital spending, pay and benefits, and total employees. Primary and secondary
data was used to complete the input-output models in IMPLAN. The study approach and economic-impact findings are a
conservative estimate of impact and are based on actual financial information. The study is a snapshot of the economic impact
of the university.
OVERVIEW AND THE IMPLAN MODEL
The most common and widely accepted methodology for measuring the economic impacts of economic sectors is input-output
(I-O) analysis. At its core, an I-O analysis is a table that records the flow of resources to and from companies/organizations and
individuals within a region at a given time. For a specified region such as a state of the nation, the input-output table accounts
for all dollar flows among different sectors of the economy in a given period. With this information, a model can then follow how
a dollar added into one sector is spent and re-spent in other sectors of the economy, generating outgoing ripples of subsequent
economic activity. This chain of economic activity generated by one event is called the “economic multiplier” effect.
The primary tool used in the performance of this study is the I-O model and dataset developed and maintained by IMPLAN
Group LLC (formerly Minnesota IMPLAN Group Inc.). IMPLAN is a widely accepted and used software model first developed by
the U.S. Forest Service in 1972. Data used in the baseline IMPLAN model and data set come largely from federal-government
databases. The input-output tables themselves come from the Bureau of Economic Analysis. Much of the annual data on labor,
wages, final demand, and other market data comes from the Bureau of Labor Statistics, the U.S. Census Bureau, and other
government sources.
Government agencies, companies, and researchers use IMPLAN to estimate the economic activities associated with spending
in a particular industry or on a particular project. The IMPLAN model extends conventional I-O modeling to include the economic
relationships among government, industry, and household sectors, allowing IMPLAN to model transfer payments such as
taxes. Producers of goods and services must secure labor, raw materials, and other services to produce their product.
The resources transferred to the owners of that labor or those raw materials and services are then spent to secure additional
goods and services or inputs to the products they sell. For example, an organization in a region may develop a company that
produces tractors with a value of $1 million. However, to produce that product, they may be required to spend $500,000 in
wages and benefits, $200,000 to suppliers of tractor parts, $100,000 for electricity, $50,000 for transportation of goods and raw
materials to and from the plant, and $50,000 in various professional services associated with operating a business (e.g.,
attorneys and accountants). The suppliers will, in turn, spend those resources on labor and raw materials necessary to produce
tractors. Workers and the owners of the company will buy goods and services from other firms in the area (e.g., restaurants and
gas stations) and pay taxes. The suppliers, employees, and owners of this second tier will, in turn, spend those resources on
other goods and services whether within the study region or elsewhere. The cycle continues until all of the money leaves the
region.
IMPLAN METHODOLOGY
The model uses national production functions for over 536 industries to determine how an industry spends its operating
receipts to produce its commodities. These production functions are derived from U.S. Census Bureau data. IMPLAN couples
the national production functions with a variety of county-level economic data to determine the impacts at a state and
congressional-district level. IMPLAN collects data from a variety of economic data sources to generate average output,
employment, and productivity for each industry in a given county. IMPLAN combines this data to generate a series of economic
multipliers for the study area. The multiplier measures the amount of total economic activity generated by a specific industry’s
spending an additional dollar in the study area. Based on these multipliers, IMPLAN generates a series of tables to show the
economic event’s direct, indirect, and induced impacts to gross receipts, or output, within each of the model’s more than 536
industries.
The model calculates three types of effects: direct, indirect, and induced. The economic impact of BHSU is the sum of these
three effects.
CONSIDERATIONS CONCERNING IMPLAN
There are three important points about the use of IMPLAN (or any other input-output model):
It is a fixed-price model. The model assumes that changes in consumption are not limited by capacity and do not affect prices.
This assumption does not cause a problem for the analysis presented here because we are taking a snapshot of South Dakota
in a specific year.
As in many studies using this type of model, the direct impacts are not calculated by the model; they are a reflection of actual
spending levels and patterns created by South Dakota. Changing the level of direct spending allows us to calculate the
magnitude of the indirect and induced effects associated with the initial level of spending.
Because the model continues to calculate additional spending until all of the money leaves the region (i.e., “leakage”), the larger
and more economically diverse the region, the longer it will take for spending to leave the region and the larger the impact is
likely to be. For example, employees of South Dakota may spend some amount of their income on buying a car. If there are no
car manufacturers in their state or county, this spending will leave the region and the multiplier effect will stop. At the national
level, some portion of that same spending by that same individual may go to a national auto producer. That spending would lead
to more spending at the national level than would be captured by a more regional model. The national impact will be larger than
the sum in the individual states, and the individual state impact will be larger than the sum of the impacts in its congressional
districts.
Appendix C: FAQ’s
WHAT IS AN ECONOMIC-CONTRIBUTION ANALYSIS?
Technically, this study is a contribution analysis. The study quantifies the economic contribution of the university in terms of
economic impact, jobs, and local and state tax revenue. The study calculates how spending by employees, visitors, and students
contributes to the economy of South Dakota and beyond. It examines how expenditures create additional impact in the economy
directly and through the multiplier.
For the purposes of this study, an economic contribution is defined as the gross changes in South Dakota’s existing economy
that can be attributed to the universities. Contribution analysis is a descriptive analysis that tracks gross economic activity: how
spending by the university and its constituencies cycles dollars through the economy. The university’s economic-contribution
analysis does not consider how spending at this university may crowd out spending at another college or university within the
state. This type of analysis is one of the most common that is performed and is often mislabeled as an economic-impact study.
Please note that while the terms used to express the contribution of South Dakota to the statewide economy are referred to as
economic impact, this is a contribution analysis.
Spending by students, staff, and faculty who are explicitly participating in activities associated with South Dakota’s output
represents a “stemming-from effect” and could also be considered a direct effect of the higher-education industry. For example,
a student who attends classes and spends $10 on lunch at a local restaurant is a stemming-from effect of the university. This
contribution analysis then follows the direct economic activity and associated stemming-from effects through the economy,
with the output of each sector broken down and attributed to expenditures on intermediate inputs or to value-added
components such as labor, taxes, and returns to capital. Output multipliers, which are sector- and region-specific, are derived
from the appropriate model and relate an industry’s economic activity (or changes in the industry’s economic activity) to gross
sales in the other sectors of the regional economy.
The contribution analysis does not account for the fact that if a student attending class were a local resident, then the $10 they
spent on lunch potentially represents $10 they are not spending at another restaurant elsewhere in town. The direct effect in a
contribution analysis includes purchases by students from in and out of state and is neither a measure of changes to the state’s
economic base nor a measure of the value added to the region above what was paid to input suppliers.
WHAT SHOULD YOU REMEMBER ABOUT THE STUDY WHEN YOU READ IT?
• It is a point-in-time calculation of impact for FY 19.
• It quantifies the amount of impact that the universities produce each year.
• The economic numbers can fluctuate from year to year based on operational spending, capital spending, pay and
benefits, number of employees, number of students, and state appropriation.
• This is an economic-contribution analysis that casts a broader net to calculate impact than an economic-impact
study.
• These are conservative numbers and adhere to industry-respected protocols.
WHAT METHODOLOGY WAS USED TO COMPLETE THIS STUDY?
IMPLAN data and software were used to conduct this economic-contribution analysis. The IMPLAN database is built using
county, state, ZIP code, and federal economic statistics that are specialized by region, not estimated from national averages,
to measure the contribution or impact of an organization’s economic activity.
WHAT WERE THE MULTIPLIERS FOR THIS STUDY?
The multipliers used in this study range from 1.8 to 2.1. The multipliers are derived through the input-output models created
using the IMPLAN software based upon industries selected during the modeling process.
WHAT DATA DOES THIS STUDY USE TO CALCULTE THE ECONOMIC IMPACT?
Primary data used in this analysis is for FY 19 and was obtained from the South Dakota Board of Regents and the university.
Data addresses the following subjects:
• Operating expenditures.
• Capital expenditures.
• Pay and benefits by employee type.
• Number and types of students (all in-state and out-of-state students included).
• Athletics.
• Volunteerism.
• Charitable giving.
• Alumni data.
Secondary data was used to estimate the following:
• Student spending habits based on the universities’ budgets for spending (full- and part-time undergraduate and
graduate students, excluding tuition and fees).
• Visitor numbers and visitor spending habits (day and overnight visitors).
WHAT ARE THE COMMUNITY-BENEFIT IMPACTS BASED UPON?
Charitable-giving impacts are based upon assumptions found in the U.S. Census donor data. These models do not assume
a 100% participation rate for staff, faculty, and students and are not based on averages. Some colleges and universities had
primary data available on volunteerism, and in those cases actual hours were used in the calculation. For the purposes of this
study, it is assumed that 24.9% of staff and faculty donate an average of $2,064 annually and 14.9% of students donate an
average of $250 each year.
Volunteer impacts are based upon assumptions found in the U.S. Census, and the value of a volunteer hour was obtained
from the Points of Light Foundation and is estimated at $23.56 per hour.
Data used to complete the contribution analysis was provided by the South Dakota Board of Regents and the university. Data supplied included operating expenditures, capital spending, pay and benefits, and total employees. Primary and secondary data was used to complete the input-output models in IMPLAN. The study approach and economic-impact findings are a conservative estimate of impact and are based on actual financial information. The study is a snapshot of the economic impact of the university.OVERVIEW AND THE IMPLAN MODELThe most common and widely accepted methodology for measuring the economic impacts of economic sectors is input-output (I-O) analysis. At its core, an I-O analysis is a table that records the flow of resources to and from companies/organizations and individuals within a region at a given time. For a specified region such as a state of the nation, the input-output table accounts for all dollar flows among different sectors of the economy in a given period. With this information, a model can then follow how a dollar added into one sector is spent and re-spent in other sectors of the economy, generating outgoing ripples of subsequent economic activity. This chain of economic activity generated by one event is called the “economic multiplier” effect.The primary tool used in the performance of this study is the I-O model and dataset developed and maintained by IMPLAN Group LLC (formerly Minnesota IMPLAN Group Inc.). IMPLAN is a widely accepted and used software model first developed by the U.S. Forest Service in 1972. Data used in the baseline IMPLAN model and data set come largely from federal-government databases. The input-output tables themselves come from the Bureau of Economic Analysis. Much of the annual data on labor, wages, final demand, and other market data comes from the Bureau of Labor Statistics, the U.S. Census Bureau, and other government sources.Government agencies, companies, and researchers use IMPLAN to estimate the economic activities associated with spending in a particular industry or on a particular project. The IMPLAN model extends conventional I-O modeling to include the economic relationships among government, industry, and household sectors, allowing IMPLAN to model transfer payments such as taxes. Producers of goods and services must secure labor, raw materials, and other services to produce their product.The resources transferred to the owners of that labor or those raw materials and services are then spent to secure additional goods and services or inputs to the products they sell. For example, an organization in a region may develop a company that produces tractors with a value of $1 million. However, to produce that product, they may be required to spend $500,000 in wages and benefits, $200,000 to suppliers of tractor parts, $100,000 for electricity, $50,000 for transportation of goods and raw materials to and from the plant, and $50,000 in various professional services associated with operating a business (e.g., attorneys and accountants). The suppliers will, in turn, spend those resources on labor and raw materials necessary to produce tractors. Workers and the owners of the company will buy goods and services from other firms in the area (e.g., restaurants and gas stations) and pay taxes. The suppliers, employees, and owners of this second tier will, in turn, spend those resources on other goods and services whether within the study region or elsewhere. The cycle continues until all of the money leaves the region.
WHY DID THE SDBOR COMMISSION A STUDY?
The SDBOR commissioned the analysis to quantify the impact of all six public higher education institutions in its system.
SDBOR and the university have a number of helpful tools to explain the value proposition for supporting higher education;
this independent study is one way to help explain its worth. In trying to explain the value of South Dakota public higher
education to internal and external constituents, it is important to quantify the workforce and economic gains realized
throughout the state. There are many ways to view the impact and value of a university and university system — economic
impact is one.
WHY DOES THIS STUDY LOOK DIFFERENT FROM OTHERS WE HAVE SEEN PUBLISHED?
The veracity of the data and methodology are consistent with industry-standard protocols for conducting an effective
economic-impact study that is conservative. The data is an independent assessment of the university’s contribution to the
overall economy — the numbers drive the message, not the other way around. The report is designed to make the data
analysis accessible to all readers.
Get in touch now
South
Dakota
BOARD of
REGENTS
1 University Street
SD
Phone: 888.888.8888
Fax: 888.888.8888
info@SDBOR.edu
Prepared by
Board of Regents
ECONOMICIMPACT REPORT
2021
outh Dakota
Public Higher
Education:
Educating South Dakota’s
Workforce of Today
and Tomorrow
S
Table of
Contents
INTRODUCTION 7
ABOUT THE STUDY 8
STATE OF HIGHER EDUCATION IN SOUTH DAKOTA 11
FUELING SOUTH DAKOTA’S ECONOMY 12
CASE STUDY: USD MED SCHOOL GRADS OFFER HOPE 14
STRENGTHENING SOUTH DAKOTA’S WORKFORCE 16
A DEGREE MAKES A LIFELONG IMPACT ON SOUTH DAKOTA 18
CASE STUDY: NSU BUILDS COMMUNITY CONFIDENCE 21
CASE STUDY: EDUCATING OUR VETERANS 22
GENERATING LOCAL AND STATE TAX REVENUES 23
SouthDakota
BOARD of REGENTS
APPENDICES
CASE STUDY: A PROFILE OF PHILIP, SOUTH DAKOTA 25
A NEIGHBORLY SPIRIT 26
GIVING BACK TO SOUTH DAKOTA 27
FRIDAY NIGHT LIGHTS 28
CASE STUDY: UNIVERSITIES ENHANCE THE QUALITY OF LIFE 30
TRANSFORMATIVE RESEARCH IN SOUTH DAKOTA 31
CASE STUDY: PREPARING A FUTURE YET TO BE IMAGINED 32
CONCLUSION 33
A: TERMS AND DEFINITIONS 34 B: STATE & COUNTY IMPACTS 35
C: DATA AND METHODS 36 D: FAQs 38
South Dakota Higher Education Makes an Impact
$2.1 billion
in economic impact
12,354 jobs
supported and sustained
$74.1 million
in local and state taxes
STRENGTHENING SOUTH DAKOTA’S
WAY OF LIFE
34,520 total students
6,655 graduates each year
21,423 students from SD attending university
46% of students stay in SD to live and work
4.2% are first-generation college students
2.6% of students are American Indian
79% of students receive financial aid
(grants, loans,and/or scholarships)
OPEN ACCESS SUPPORTSLIMITLESS POTENTIAL
2,990 nurses
294 doctors
3,914 teachers
303 lawyers
378 pharmacists
HOMEGROWN CREDENTIALS
TO SUPPORT OURHOMETOWNS
South Dakota public institutions are addressing
significant workforce and education gaps in
business, finance, early childhood education,
teaching, accounting, sustainability studies,
hospitality management, agriculture, general
studies, health professions, and psychology.
Expansion of master’s degree programs in
registered nursing and business management.
NIMBLY RESPONDING TO
WORKFORCE NEEDS
Consolidation of administrative functions yields
cost savings
Reducing majors to avoid duplication and low
enrollment
Collaboration between USD, DSU, and the
Community College for Sioux Falls
West River Health Sciences Center is a BHSU and
SDSU collaboration to expand nursing and health
occupations in western South Dakota
ENGAGED, EFFICIENT & LEAN
4
South Dakota Higher Education Makes an Impact
5,746 students enrolled in 8,078 courses at six universities
189 high schools participating
Cost savings of dual enrollment
saves the students and saves the state
DUAL ENROLLMENT
6 universities
1 master plan to educate professionals of the future
1 overarching governance body —
South Dakota Board of Regents
1 unified vision with six voices
1 South Dakota
INDEPENDENT BUT
COORDINATED STRATEGY
$168.5 million research impact generated
and 974 jobs supported and sustained
437 engineering graduaties
374 information technology graduates
338 agriculture and veterinary
sciences graduates
ENRICHING ECONOMIC
ENGINES
$13 million in volunteerism with nearly 550,000 hours
$3.8 million in philanthropy for community charities
$16.8 million in total giving by faculty, staff, and students
COMMUNITY HUBS
$300.9 billion in impact generated
from alumni over their 40-year
careers supporting 1.9 million jobs
104,937 alumni living and working
in the state
BLOOM WHERE
YOU’RE PLANTED
5
8
“Our public universities are working as one to
serve the education and workforce needs of
South Dakota. Our regental system serves the
distinctive needs of our students and demands
of industry while being careful stewards of the
state’s dollars.”
Dr. Brian Maher
Executive Director & CEO,
South Dakota Board of Regents
of theSouth Dakotaeconomy are in the higher
education system
supported
and sustained
12,354
jobs
generated
i
n
t
o
t
a
l
economic i
m
p
a
c
t
$2.1
billion
4%
2.7%
of South Dakota’s
workforce
4,852
direct jo
b
s
$74.1
million
generated in st
a
t
e
and local taxes
$16.7
million
annually in
charitable givin
g
and volunteeri
s
m
6
Introduction
South Dakota’s six public universities each have a unique identity.
¹ Public universities in this study refer to those under the South Dakota Board of Regents: Black Hills State University, Dakota State University, Northern State University, South Dakota School of
Mines & Technology, South Dakota State University, and The University of South Dakota.
And under the strong leadership of the Board of
Regents, together they form a coordinated,
unified system in which each performs a vital
function in educating the sons and daughters
of South Dakota. From their beginnings as
typical schools before South Dakota was
admitted to the Union to the cutting-edge
research and first-class education they provide
today, the universities have been the backbone
of higher education in the Mount Rushmore
State. Every year more than 30,000 students
from small towns and big cities across the
state attend Black Hills State University, Dakota
State University, Northern State University,
South Dakota School of Mines & Technology,
South Dakota State University, and the Universi-
ty of South Dakota. The South Dakota Board of
Regents oversees these universities with
nimble precision that allows South Dakota to
stay at the forefront of a changing world.
The South Dakota
regental system plays a
powerful role in the state’s
economy. Taken together, they
supported a total of 12,354 jobs
across the six universities¹ and
administrative offices and
generated $2.1 billion in
annual economic impact
in the fiscal year 2019.
7
8
Analysis
&
Reporting
About the Study
In July 2021, the South Dakota Board of Regents (SDBOR) engaged Parker Philips Inc. to measure the economic
contribution of public higher education overall and of each of South Dakota’s six universities, individually. This
analysis aims to tell the university system’s story from a numbers and narrative perspective. To develop this
report, Parker Philips gathered student, financial, and employment data about each university, visited and toured
each campus, conducted multiple interviews, and researched secondary data and information to inform the
writing and critical messages.
Campus Visits
& Key
Stakeholder
Interviews
Methodology:
Geography:
Fiscal Year:
Institutions Included:
IMPLAN
South Dakota
2019 (FY 19)
Black Hills State University
Dakota State University
Northern State University
South Dakota School of Mines & Technology
South Dakota State University
University of South Dakota
South Dakota Board of Regents
OVERVIEW
Financial
& Data
Gathering
In October 2021, the task force released a report that includes 35 separate recommendations across several
areas. Recommendations include a range of cost-saving measures, including combining some administrative
systems across universities and consolidating contracts, targeted consolidation of some academic
programs, and expanded use of data to address issues such as enrollment trends, class size, program size,
and central office staffing and functions. The Board of Regents is committed to full consideration of each
recommendation in the coming months.
As America’s economy continues to adjust to rapidly changing circumstances in this country and across
the world, South Dakota’s public universities have never been more important. By delivering efficient,
high-quality postsecondary education aligned to the current and emerging workforce and talent needs of
South Dakota, the state’s six universities are the foundation of South Dakota’s well-being — both now and
in the future. This report details the total economic impact of South Dakota’s public university system and
provides rich evidence of its total value for the people of South Dakota.
9
The primary tool used in the performance of this
study is the input-output model and data set
developed by IMPLAN Group LLC. Financial data
used in this study was obtained from SDBOR and
included the following data points: operational
expenditures, capital expenditures, and payroll
and benefits for employees for FY 19. Secondary
data was used to estimate spending by visitors
(day and overnight) and students (undergraduate
and graduate) exclusive of tuition and fees.
Additional information on the methodology and
assumptions used to complete this study can be
found in Appendix C.
The impact presented in this analysis is broken
down into three categories: direct impact,
indirect impact, and induced impact. The indirect
and induced impacts are commonly referred to
as the “multiplier effect.” The graphic below
provides an overview of the types of impact
detailed in this report.
10
State of Higher Educationin South Dakota
Senate Bill 55
Senate Bill 55 was enacted by the South Dakota Legislature in 2020 requiring the Board of Regents to form a task
force to review the operations of the six public universities and provide a set of recommendations to increase
efficiency and achieve cost savings. This request aligned well with the mission of the Board of Regents to ensure that
taxpayer and student dollars that flow to the six public universities are being used as effectively as possible. Task
force members met collectively six times and convened 20 subcommittee meetings as they conducted this work.
South Dakota’s public university system occupies a uniquely important place in state residents' economic and social
well-being. Enrolling more than 33,000 students across its six institutions and awarding over 6,600 undergraduate
and advanced degrees each year. South Dakota’s public universities are a primary economic engine of the state.
This is underscored by the fact that the state is home to only five private, nonprofit four-year colleges and
universities. South Dakota’s public university system is an integral part of the state’s future.
Like nearly every state in the country, South Dakota’s public universities face undeniable challenges – declining
population, decreased student enrollment, affordability of higher education, and decreased state appropriations.
As the numbers of high school graduates have dropped, total enrollment in the state’s
public universities has declined 8.1% over the past five years with enrollment shifts varying
substantially across the six institutions.
According to the State Higher Education Executive Officers (SHEEO), education appropriations
per FTE in South Dakota have decreased 29.1% since 1980, and in 2019 public institutions
received $5,817 per full-time equivalent student — about 71% of the U.S. average. The state has
increased financial aid during that time period; in two decades the amount of state aid has
increased 4,274% and has risen from .1% to 4.7% of all education appropriations.
Among six neighboring states (Iowa, Minnesota, Montana, Nebraska, North Dakota, and
Wyoming), the annual cost for undergraduate tuition and fees in South Dakota is second only to
Minnesota. Total costs for tuition, fees, and room and board were $16,251 in South Dakota’s
public universities in 2019.
South Dakota’s public universities are tackling these unprecedented challenges and will develop new strategies and
tactics to ensure that they serve the state’s economic and social well-being. The Board of Regents, individual universities,
and statewide leadership are working together to ensure an efficient and effective public higher education system that
serves the needs of South Dakota’s citizenry.
11
Fueling South Dakota’sEconomy
Universities contribute to the local and statewide economies through their
expenditures on operations, capital projects, wages, the spending of students
off campus, and the spending of visitors to campus. The direct, day-to-day
expenditures of the universities, combined with student and visitor spending,
cause a ripple effect throughout the statewide economy. The total economic
impact of the universities in FY 19 totaled $2.1 billion, which is 4% of the South
Dakota economy. This contribution to the local and statewide economies is a
point-in-time snapshot depicting how the expenditures of the university system
and its faculty, staff, students, and visitors make an impact.
Operations and Spending Contribution
The universities’ operations and capital spending in FY 19 contributed a total of
$1.8 billion. The universities’ operations generated $1.1 billion in direct
economic impact, $305.2 million in indirect economic impact, and $420.9
million in induced economic impact.
Student Spending Contribution
South Dakota’s public university students contributed a total of $273.5 million
to the state’s economy in FY 19 as a result of their spending. They generated
$180.1 million in direct economic impact, $47.5 million in indirect economic
impact, and $45.9 million in induced economic impact.
Visitor Spending Contribution
Visitor spending contributed a total of $55.0 million. Visitors to all universities
generated $33.3 million in direct economic impact, $11.6 million in indirect
economic impact, and $10.1 million in induced economic impact.
12
Combined Economic Impact (FY 19)
$2,105,739,241
total combined
economic impact
$55,022,986
total visitorspending
$273,543,921
total studentspending
$1,777,172,334
total operationsspending
13
Source: Parker Philips using IMPLAN with data from SDBOR
Total Direct Spending:
Total Indirect Spending:
Total Induced Spending:
$1,264,520,229
$364,295,694
$476,923,318
$33,342,449
$11,555,809
$10,124,728
Direct Spending:
Indirect Spending:
Induced Spending:
$180,099,960
$47,561,254
$45,882,707
Direct Spending:
Indirect Spending:
Induced Spending:
$1,051,077,820
$305,178,631
$420,915,883
Direct Spending:
Indirect Spending:
Induced Spending:
Case Study:
USD MED SCHOOL
GRADS OFFER HOPE
TO SOUTH DAKOTA’S
HEALTHCARE DESERTS
“Healthcare deserts” — areas that lack basic access to adequate medical care —
exist in most parts of South Dakota. According to the South Dakota Department
of Health, healthcare deserts exist in 52 of the state’s 66 counties in 2021. Lack
of access to mental healthcare is even more acute, existing in 60 counties.
Whether due to a shortage of primary care physicians or nurses, the absence of
hospitals and trauma centers within a reasonable driving distance, or a lack of
internet to access telemedicine, many South Dakotans struggle to address their
medical needs. As a result, the physical and economic well-being of rural
communities are at risk.
The University of South Dakota’s Sanford School of Medicine has been nationally
recognized for its sustained efforts to fill these gaps. In 2017, the school
received the highest honor conferred upon medical schools by the Association
of American Medical Colleges, the Spencer Foreman Award for Outstanding
Community Service. The award recognizes schools with a long-standing
commitment to partnering with communities to meet medical needs. USD’s
medical school stood out largely because of its reach statewide, with students
spreading out across the state to learn, work, and serve in both cities and rural
communities across South Dakota.
These students are supported by programs like Frontier and Rural Medicine, or
FARM, which pairs medical students with family physicians in rural communities
such as Milbank, Parkston, Winner, and Pierre. FARM helps students learn what
it’s like to work and thrive in small-town clinics and hospitals.
Dr. Matthew Owens, a 1993 graduate of USD Sanford School of Medicine who is board certified in family medicine
and operates a rural practice in Redfield, SD, is making an impact by serving a community of about 2,200 residents
in the northeast quadrant of the state. He joins four other USD Sanford School of Medicine MD graduates practicing
in a small 17-bed hospital attached to a rural health clinic. “I don’t think you’re going to recruit a lot of physicians
into rural South Dakota from outside the state. USD Sanford School of Medicine drives rural healthcare in South
Dakota and makes our small communities strong,” says Owens. This healthcare system is a major economic
engine of the area, employing 129 healthcare professionals ranging from speech therapists to nurses and hospital
administrators to cleaning crews.
14
“I’ve been in Redfield for 20 years. I am part of the community. I support my
patients, and they support me and my family. You can’t put a price tag on that.”
Dr. Matthew Owens
Physician, Redfield, SD
15
South Dakota’s six public universities support a total of 12,354 full- and part-time jobs
throughout the state — 2.7% of South Dakota’s workforce. Indirect and induced jobs are also
generated via construction for campus projects, retail, restaurants, daycare, real estate, and
banking — to name a few.
Strengthening South
Dakota’s Workforce
at South Dakota
Public Higher Educational
Institutions
4,852 directjobs
support an additional7,502 jobs
16
Combined Employment Impact (Jobs, FY 19)
Jobs Generated by
University Operations
University operations supported and sustained a total of 9,426 jobs:
4,852 direct jobs, 1,792 indirect jobs, and 2,782 induced jobs.
Jobs Generated byStudent Spending
South Dakota state university students supported and sustained a
total of 2,411 jobs as a result of student spending: 1,845 direct jobs,
263 indirect jobs, and 303 induced jobs.
Jobs Generated byVisitor Spending
Visitors to all universities supported and sustained a total of 517
jobs as a result of their spending: 376 direct jobs, 74 indirect jobs,
and 67 induced jobs.
Based on analysis by industry sectors, other jobs supported by the university’s economy outside of the higher
education and healthcare sectors include jobs in real estate, retail, and services (e.g., restaurants, child-care
centers, and entertainment).
12,354
total combined
contribution (jobs)
Total Direct Contribution:
Total Indirect Contribution:
Total Induced Contribution:
7,073
2,129
3,152
517
total visitorcontribution (jobs)
376
74
67
Direct Contribution:
Indirect Contribution:
Induced Contribution:
2,411
total studentcontribution (jobs)
1,845
263
303
Direct Contribution:
Indirect Contribution:
Induced Contribution:
9,426
total operationscontribution (jobs)
4,852
1,792
2,782
Direct Contribution:
Indirect Contribution:
Induced Contribution:
Source: Parker Philips using IMPLAN with data from SDBOR
17
A Degree Makes a Lifelong
Impact on South Dakota
A higher education credential changes outcomes not just for individuals but also for their families
and the entire South Dakota economy and quality of life. College degrees lead to opportunities for
a lifelong career, financial stability, and better overall health and well-being. In today’s world,
educational attainment plays an even more significant role in other aspects of people’s lives — it
increases opportunity and improves overall quality of life and longevity.
Increased Lifelong
Earnings
Pursuing a college degree is an investment in future earnings and a higher
quality of life. Education is the clearest personal pathway to increased
earnings and economic security. The relationship between higher education
and higher lifetime earnings is well-established. The median salary of an
individual increases by 67.3% from a high school degree to a bachelor’s
degree.² The earning power of a college degree is experienced over a career
and a lifetime. People with a bachelor’s degree earn an average of $1 million
more over the course of their 40-year career than those with a high school
diploma.
According to the U.S. Bureau of Labor Statistics, the average salary earned by
a person with a bachelor’s degree in the United States (U.S.) is $64,896, which
is $33 per hour. This does not include the benefits packages and fringe
benefits offered as a part of a regular compensation package. Future earnings
will be higher or lower based on degree type.
² All salary data is sourced from the U.S. Bureau of Labor and Statistics. https://www.bls.gov/careeroutlook/2020/data-on-display/education-pays.htm
Dr. Matthew Owens, a 1993 graduate of USD Sanford School of Medicine who is board certified in family medicine and operates a rural practice in Redfield, SD, is making an impact by serving a community of about 2,200 residents in the northeast quadrant of the state. He joins four other USD Sanford School of Medicine MD graduates practicing in a small 17-bed hospital attached to a rural health clinic. “I don’t think you’re going to recruit a lot of physicians into rural South Dakota from outside the state. USD Sanford School of Medicine drives rural healthcare in South Dakota and makes our small communities strong,” says Owens. This healthcare system is a major economic engine of the area, employing 129 healthcare professionals ranging from speech therapists to nurses and hospital administrators to cleaning crews.
18
0 10000 20000 30000 40000 50000 60000 70000 80000
U.S. Median Wage by Degree Type
67.3% increase in annual median earnings
$64,896
$38,792
Bachelor's Degree
High School Diploma
Source: U.S. Bureau of Labor and Statistics
Decreasing Crime and Associated Costs
³ Vera Institute of Justice.
https://www.vera.org/publications/price-of-prisons-2015-state-spending-trends/price-of-prisons-2015-state-spending-trends/price-of-prisons-2015-state-spending-trends-prison-spending
Unemployment and Earnings by Degree Type, 2019
19
Source: U.S. Bureau of Labor and Statistics, 2019
Analysis by Parker Philips, Inc.
Decades of research has shown that educational attainment decreases a person’s likelihood of
engaging in criminal activity. A community’s education level correlates to how safe it is —
better-educated communities have lower levels of crime, and therefore need fewer public dollars
for incarceration and the criminal justice system. In 2015, South Dakota reported spending over
$73 million on its prison systems across the state — about $20,700 per inmate.³ South Dakota
benefits from a strong and well-supported public university system because more college
graduates mean less crime, more community engagement, and a larger share of tax dollars
available to invest in improving the lives of South Dakotans.
Unemployment
Rate
1.1%
2.0%
2.2%
2.7%
3.3%
3.7%
5.4%
Median
Annual
Earnings
97,916
$77,844
$64,896
$46,124
$43,316
$38,792
$30,784
Median
Weekly
Earnings
$1,883
$1,497
$1,248
$887
$833
$746
$592
Difference in
Annual Earnings
Over Previous
Degree Type
$20,072
$12,948
$18,772
$2,808
$4,524
$8,008
% Change
Over
Previous
Degree
1.2%
20.0%
40.7%
6.5%
11.7%
26.0%
Doctorate
Degree
Master's or
Professional Degree
Bachelor's
Degree
Associate
Degree
Some College
but No Degree
High School
Diploma
Less Than a High
School Diploma
South Dakota's Talent Base Makes an Impact
The impact of South Dakota’s college graduates during the course of their careers is significant. In 2019, more than
6,665 students graduated from South Dakota’s public higher education institutions. Many graduates plant their roots
in the communities where they earned their degree, shoring up the strength of available human capital. Relationships
formed between the universities and private corporations such as Sanford Health, Nieman Enterprises, and Agtegra
Cooperative help grow and sustain the workforce and economic activity throughout South Dakota.
South Dakota public higher education’s alumni that stay in the state to live and work after graduation make an
outsized impact on the state’s economy. The earnings of the 104,937 alumni from South Dakota’s public institutions
living and working in South Dakota over the course of their 40-year careers will total $287.5 billion, support and
sustain a cumulative total of 1,913,003 jobs, and generate $12.9 billion in tax impacts at the local and state levels.
Increasing Longevity and
Quality of Life
Education level plays a major role in determining an individual’s quality of
life. In the past 20 years, the life expectancy gap between the most educated
and the least educated Americans has widened. Americans with less
education are more likely to have serious health conditions than those with
a higher level of education. Year after year, data from the Bureau of Labor
Statistics shows that people with a university credential are more likely to
have higher wages, employer-sponsored healthcare, paid vacation and
leave, retirement savings, and work in lower-risk occupations. Educational
attainment also usually leads to the ability to live in a safer neighborhood,
which is also a social determinant of health.4
Educational attainment is a contributing factor to being able to have a
better understanding of health issues, being able to self-advocate, and
choosing a healthier lifestyle. People with a higher education are less
likely to experience the stress created by social and economic troubles
associated with lower earnings and less education. Highly educated
adults are more likely to have stronger and broader social networks,5
which yields access to financial, emotional, and psychological resources,
thereby reducing stress and providing coping mechanisms to protect
them from adverse health effects. Higher education, among many other
social determinants of health, matters to health outcomes.
4 Healthy People 2020. https://www.healthypeople.gov/2020/topics-objectives/topic/social-determinants-health/interventions-resources/enrollment-in-higher
5 Bauldry, Shawn. Conditional Health-Related Benefits of Higher Education: An Assessment of Compensatory versus Accumulative Mechanisms.
Published online 2014 Apr 12. doi: 10.1016/j.socscimed.2014.04.005
20
Over the past 10 years, the Aberdeen community has contributed about $150 million to Northern State University
(NSU). That’s a stunning amount of money from any city — particularly from one with a population of less than 30,000.
It is tangible evidence that Aberdeen connects its future with the success of NSU.
State Senator Casey Crabtree attended NSU in the early 2000s and has first-hand knowledge of NSU’s uniquely
important relationship with Aberdeen and the entire northern region of South Dakota. “Walking around the NSU
campus, you can really see what private investment has done for the university. It all came from people who really
cared enough to make a difference in their community,” said Senator Crabtree.
The $150 million NSU has received in local investments has gone a long way toward strengthening NSU’s educational
offerings and expanding opportunities for local residents to take advantage of the University’s rich array of extracurricular
offerings. From 2013 to 2021, local contributions have contributed to student scholarships, supported the construction of
the Jewett Science Education Center, and provided enhancements to the Regional Sports Complex and athletic fields and
facilities. Local dollars also contributed to the renovation of the Johnson Fine Arts Center — a facility that annually hosts
more than 65 concerts, theater performances, and community events and welcomes more than 7,600 guests per year.
Case Study:
COMMUNITY RESOURCES
ARE A TANGIBLE VOTE OF
CONFIDENCE IN NSU
“The university is incredibly important not only to the
Aberdeen community but to the whole region. It’s our No.
1 tool to not only attract new workforce from other states,
but to develop our own workforce right here in South
Dakota. That’s why folks in Aberdeen are investing in NSU.
When students have a great experience at NSU, they’ll stay
and continue to be part of the workforce and carry on the
legacy of Northern.”
Casey Crabtree
South Dakota State Senator
21
Case Study:
OFFERING A DISTINCTIVE
COLLEGE EDUCATION TO
THOSE WHO SERVE OUR
COUNTRY WITH DISTINCTION
The U.S. military is one of the backbones
of South Dakota’s economy and culture.
It is the second-largest employer in
South Dakota, powered in large part by
historic Ellsworth Air Force Base (EAFB).
Established a few miles from Rapid City
in 1941, EAFB has served a role in several
wars and as home base to critically
important Air Force defense operations
and training. EAFB is home to about
8,000 people including military members,
their families, and civilian employees,
and is one of the largest employers in the
region. About 3,800 veterans also call
western South Dakota home.
“The Air Force is technically driven, and this partnership with Black Hills
State University will further develop these airmen’s knowledge. They’re
learning the critical thinking skills the Air Force needs in maintaining
airplanes and staffing hospitals.”
Roger Wilson
Chief, Education and Training
Ellsworth Air Force Base
Black Hills State University (BHSU) has a 60-year history of supporting western South Dakota’s military by offering
courses at Ellsworth Air Force Base. This fall, the partnership has been elevated to a new level. BHSU competed for
and won a contract to operate a local campus on base, delivering distinctive undergraduate and graduate programs
to those who serve our country with distinction.
22
Generating Local and
State Tax Revenues
The universities’ employees, suppliers, and related constituencies contribute to the local and statewide tax bases.
In FY 19, the universities contributed an estimated $74.1 million ($41.0 direct and $33.1 million indirect and
induced) through local spending (operational, capital, students, and visitors) as well as direct and indirect support
of jobs. At the state and local levels, South Dakota’s public universities contribute to the tax base through their
purchasing, student, and visitor spending. Specific taxes include employee and employer contributions to state and
local social-insurance funds, sales and use taxes, personal property taxes, taxes paid on motor-vehicle licenses,
and payments of fines and fees
Combined State and Local Tax Impacts (FY 19)
$7,859,825
$2,246,345
$4,227,382
$14,333,552
Source: Parker Philips using IMPLAN with data from SDBOR
DIRECT
INDIRECT
INDUCED
TOTAL
$9,008,904
$2,580,333
$4,856,512
$16,445,749
$3,633,987
$1,024,027
$1,925,657
$6,583,671
$20,510,042
$5,673,003
$10,586,108
$36,769,153
$41,012,758
$11,523,708
$21,595,659
$74,132,125
SUB COUNTY
GENERAL
SUB COUNTY
SPECIAL
DISTRICTS COUNTY STATE TOTAL
23
Case Study:
DSU APPLIED RESEARCH
LAB CUTTING EDGE OF
CYBERSECURITY
“We can keep our very, very best and brightest students here after
graduation to work in South Dakota at MadLabs®. And they're doing
work of national security importance.”
Dr. Josh Pauli
Executive Director, DSU Applied Research Lab
Madison Cyber Labs — affectionately known as MadLabs® — is a perfect example of
how DSU’s cybersecurity expertise keeps our country safe while also contributing to the
economy of the Madison region and beyond. MadLabs® draws new talent to the state
and the region, attracting elite scholars, researchers, professionals, and partnerships
with government, businesses, nonprofits, and other higher education institutions. This
$18-million, 40,000-square-foot building is the first research facility of its kind in the
Great Plains.
The MadLabs® building and its associated programs are the result of a fruitful partnership
between the university, the state, the federal government, and private donors. This
includes $30 million from PREMIER Bankcard President and CEO Miles Beacom and his
wife Lisa, along with Denny Sanford, owner of the Sioux Falls-based First PREMIER Bank and PREMIER
Bankcard. Their gift is one of the largest single gifts to higher education in South Dakota history — and it’s generating
a ripple effect across the region. Additional support includes a $10 million pledge from Governor Daugaard's Future
Fund. The private and public funding sources are being leveraged to draw an additional $20 million in support from
federal sources and private donors. The synergy created by this coalition of advocates for higher education will
support South Dakotans for generations to come.
Dakota State University (DSU) is small but mighty. The 3,200-student university in
Madison is a national leader in cyber education and currently holds four Centers of
Academic Excellence designations from the NSA and Department of Homeland
Security: Cyber Defense Education, Cyber Defense Research, Cyber Operations, and
Cyber Defense Consultative Regional Resource Center. Graduates of NSU’s cyber-
security majors are in demand: The Beacom College of Computer and Cyber
Sciences has a 96% placement rate for undergraduates and a 100% placement rate
for graduate students.
24
Sometimes it’s easy to forget that South Dakota’s college graduates are in many ways the
foundation of its small communities. Whether it’s the pharmacist who shows a senior how to
use a new medication, the teacher who educates a future governor, the accountant who
supports the local grocery store, the health professional who delivers babies, the undertaker
who helps families navigate the passing of a family member, or the lawyer who provides
advice to family farms and ranches — South Dakota’s college graduates provide the stability,
services, and talent that keep its communities thriving.
The town of Philip provides a case in point. With a little under 800 permanent residents, Philip
is located halfway between Pierre and Rapid City in the western part of South Dakota. This
small town is a powerhouse in its region, providing a local hospital, nursing home and
medical facilities; a public school district including a rural school; a locally owned pharmacy;
a newspaper; a bank, a funeral home, and several local businesses.
Philip’s residents don’t have to drive 90 to 100 miles to meet their necessities — the town
prides itself on having what they need. As a result, Philip is home to a growing number of
young families eager to provide their children with the benefits of a small-town life with the
advantages that Philip’s strong cadre of college-educated professionals provide.
Courtney Kjerstad, owner of Philip’s Dakota Country Pharmacy, is one of those professionals. Born
and raised in another South Dakota small town — Gettysburg — Kjerstad graduated from SDSU
and received her Doctor of Pharmacy degree in 2011. After spending two years in Arizona working
for a large pharmacy chain, Kjerstad and her husband decided to return to South Dakota to raise
their family.
“After having our first child, we decided it was time to move home and give our children the
same wonderful opportunities we had growing up in rural South Dakota,” said Dr. Courtney
Kjerstad, owner, Dakota Country. “We found opportunity in the wonderful community of Philip,
and we became owners of Dakota Country Pharmacy in 2014.”
“I can’t imagine doing anything else with my career because I love the satisfaction
of knowing each and every one of my customers.”
Dr. Courtney Kjerstad, owner, Dakota Country Pharmacy
Homegrown Credentials to Support our
Hometowns: A South Dakota Town
Spotlight on: Philip, SD
South Dakota is a small-town state. Over 150 towns and municipalities house less than 1,000 residents, and another 60
have populations of 6,000 or less. Dotted across the landscape, these small towns and rural communities form the fiber
of South Dakota’s culture, providing a strong sense of community and a fierce loyalty to the South Dakota way of life.
Case Study:
25
A Neighborly Spirit
The spirit of South Dakota is neighbor helping neighbor, whether they are in Sioux Falls or Hill City. South Dakotans
share a common spirit and set of values that are rooted in a love of the land and giving back to community. There is
no shortage of ways that students, faculty, and staff give back to those in need with their time and their money. The
presence of these universities in a community gives residents access to arts and cultural events, sporting events,
and workout facilities that would otherwise not be available.
The USD music department staffs the National Music Museum in Vermillion, giving the community
access to historical and archival information or the opportunity to see a student performance in the
new Janet L. Wanzek Performance Hall.
NSU students support the South Dakota School for the Blind and Visually Impaired (SDSBVI) by
assisting as student teachers and by volunteering to help in classes. SDSBVI students also use the
NSU campus for mobility training.
Black Hills State University hosts the Madeline A. Young Distinguished Speaker Series. Community
members and students can attend the speaker series that brings in world-class speakers such as
novelist Michael Chabon, United Nations Ambassador Jeane Kirkpatrick, actor Danny Glover, and
writer and Pulitzer Prize winner Doris Kearns Goodwin.
26
Giving Back to
South Dakota
All of South Dakota benefits from the volunteerism and charitable giving of faculty, staff, and
students. Based upon assumptions derived from the U.S. Census Bureau and the Points of
Light Foundation regarding donation amounts and volunteerism rates by age, income level,
and employment status, it is estimated that staff, faculty, and students give nearly $3.8
million annually in charitable donations and volunteer for almost 550,000 hours, valued at
almost $13.0 million. In FY 19, the combined impact of charitable giving and volunteerism
totaled nearly $16.8 million. These benefits were in addition to the $2.1 billion annual
economic impact.
Charitable Giving and Volunteer Impact of All Universities
Staff and Faculty Charitable Giving $2,493,042
Student Charitable Giving $1,285,870
Total Charitable Giving $3,778,912
Staff and Faculty Volunteerism Hours 67,291
Student Volunteerism Hours 482,590
Total Volunteerism Hours 549,881
Value of Staff and Faculty Volunteerism Hours $1,585,386
Value of Student Volunteerism Hours $11,369,811
Total Value of Volunteerism Hours $12,955,197
Grand Total $16,734,109
27
Giving Back to
South Dakota
Friday Night Lights
Rooting for the home team is
integral to life in college towns
across South Dakota. These
universities are gathering places
that create and strengthen the
sense of community as South
Dakotans gather to cheer on the
home team. Towns from Spearfish
to Vermillion are behind these
student-athletes.
28
NSU has led the NCAA Division II in both men’s and women’s basketball
game attendance for the last 13 years.
In the 2020 Olympics, Chris Nilsen, a 2020 graduate of USD, won the
silver medal in the men’s pole vault, clearing 19-7 — the highest an
American has jumped in Olympic history.
At SDSU in 2019, a total of 87,764 people attended Jackrabbits’ football
games and listened as the marching band — “The Pride of the Dakotas” —
performed at halftime shows.
Dakota State set an NAIA record for scholar-athletes — who must have
a 3.5 GPA or higher to qualify — in 2020–2021.
BHSU and South Dakota Mines meet in the Black Hills Brawl every year,
making this the longest-running rivalry in Division II football. BHSU won
the first game in this rivalry in 1895, setting the tone of the future
meetings between the two. The winner takes the Homestake Trophy,
based on a prospector’s pan.
29
The value of a university cannot be fully captured in dollars and cents. A university is an integral part of the fabric of
its host community. It can serve as a hub for social gatherings, recreation, sporting events, and the arts — creating
a sense of community that is vital to the well-being of its residents and acting as a magnet that local businesses use
to attract new talent to the area. Universities can also partner with businesses in the region to ensure their
graduates have the skills and experience needed to hit the ground running and join the local economy. In turn, a
university benefits from the engagement and talents of its hometown residents as they come to campus to cheer
on sports teams, participate in charity events, and host student interns in local businesses. In university towns, both
the community and the campus reap benefits too rich to capture in numbers alone.
Northern State University (NSU) is an integral part of the Aberdeen community — and locals don’t take it for granted.
Matt Campbell is CEO of MyPlace Hotels, an Aberdeen-based hospitality company with annual revenues of nearly
$90 million and over 50 hotels in 27 states. Campbell has particular insight into NSU’s impact on the city of
Aberdeen. For example, the university’s athletic teams and alumni events draw visitors near and far to hotels in his
network and others, as well as to local restaurants and shopping venues.
But even more important are the strong partnerships between Northern and local businesses that create a pipeline
for placing talented interns and graduates into careers that will keep them in Aberdeen for years to come. Campbell
points to long-standing relationships with academic department heads and deans that funnel Northern’s best and
brightest into the city’s growing economy.
Case Study:
SOUTH DAKOTA’S
UNIVERSITIES ENHANCE THE
QUALITY OF LIFE IN THEIR
HOST COMMUNITIES
30
“When you look at the value of Northern, and why it’s important
to Aberdeen, it goes beyond economic impact. We don’t have a
town or an economy at all without Northern grads coming to work
for us — whether that’s at a local restaurant in town or owning
and managing a business. Thirty-four percent of my company’s
employees have a degree from Northern. That’s pretty impressive.”
Matt Campbell, President and CEO, MyPlace Hotels
All Universities State and Local Tax Impacts (FY 19)
517
245
212
974
Source: SDBOR with analysis by Parker Philips, Inc.
DIRECT
INDIRECT
INDUCED
TOTAL
$95,413,490
$41,018,437
$32,090,113
$168,522,040
$1,117,578
$997,729
$1,453,999
$3,569,306
EMPLOYMENT
JOBS
ECONOMIC
OUTPUT
STATE & LOCAL
TAX IMPACT
Transformative Research
in South Dakota
South Dakota relies upon higher education to provide training and skills for the next wave of discovery in the state.
Through cutting-edge healthcare, cybersecurity, and environmental research, as well as driving innovation fueled by
the demands of South Dakota’s agricultural industry, the public higher education sector is reimagining the state’s
future while enriching its traditional industries.
In FY 19, the universities expended $106 million on research-related activities, with $95.4 million being expended in
the state. The impact of research totaled $168.5 million, supported 974 jobs, and generated $3.6 million in state and
local taxes. With over $86 million brought into South Dakota from outside of the state, research represents a net new
influx of dollars to the economy.
Research commercialization from
the South Dakota School of Mines
& Technology, South Dakota State
University, and the University of
South Dakota for FY17 through
FY21 is shown in the table below.
$86.2 MILLION
IN FEDERAL AWARDS
INCLUDES $17.1 MILLION FROM THE
NIH AND $16.2 MILLION FROM NSF.
$6.8 MILLION
IN OTHER AWARDS
$17.4 MILLION
IN STATE AWARDS
$3.2 MILLION
IN PRIVATE AWARDS
Research Commercialization Activity
FY 17
FY 18
FY 19
FY 20
FY 21
PATENTS
ISSUED
LICENSE
AGREEMENTS
SIGNED
LICENSE
AGREEMENTS SIGNED
WITH STARTUPS
INVENTION
DISCLOSURES COMING
FROM RESEARCH
PATENTS
FILED
25
26
17
17
21
11
14
7
16
9
9
12
5
6
9
6
3
1
3
5
77
44
38
39
34
Source: SDBOR
31
A case in point is the South Dakota Mines’ Entrepreneur-in-Residence (EIR) program, which provides
experienced mentors to coach university business start-ups. EIR’s proven track record of success is
well-known. As evidence of the success of the program, South Dakota Mines’ start-ups have won the
South Dakota Governor’s Giant Vision Competition in three out of the past four years. In 2021, EIR lists
nearly 30 local business leaders serving as mentors with expertise ranging from building and growing
start-ups to healthcare management, digital strategy development, marketing, supply chains, and
software and product development.
Craig Arnold is one of those EIR mentors. Arnold’s leadership experience spans more than 30 years,
including technology start-ups, biotechnology, and biofuels, as well as leadership positions in philanthropy,
computer technology, and the aerospace industry.
Case Study:
PREPARING SOUTH
DAKOTA FOR A FUTURE
YET TO BE IMAGINED
According to Arnold, EIR gives future entrepreneurs “the opportunity
to sit with a bunch of us old-timers and tell us a story about their great
idea. And we can help them figure out how to launch — how to turn
that idea into a new venture. Students need to know what they are
paying all this money for and how to get their return on investment.
The EIR program helps make sure they get that return.”
Craig Arnold, South Dakota Entrepreneur
South Dakota’s future is bright. With a wealth of talent and a bedrock foundation
of agriculture, the state is strengthening those economic sectors and fueling the
growth of emerging economic drivers with the new discoveries, innovation,
abundant talent, and entrepreneurial excellence that South Dakota’s state
university system provides. South Dakota university faculty and researchers
have received more than $17 million in federal NSF and NIH grants in 2019 and
been granted 17 patents for their cutting-edge ideas and inventions.
32
Conclusion
South Dakota’s public higher education institutions are essential to the state’s success from a workforce perspective.
With the South Dakota Board of Regents at the helm, the system is adapting to the changing demographic, financial,
and workforce needs of the state. Each university is an integral part of the higher education delivery system in South
Dakota – they are vital to their individual communities and to the students they serve. There is little doubt that these
universities understand how to best serve the needs of their students and the people of South Dakota. The impact
of these institutions goes beyond economics – they are a part of the social fabric of the state.
Staff and Faculty Charitable Giving $2,493,042Student Charitable Giving $1,285,870Total Charitable Giving $3,778,912Staff and Faculty Volunteerism Hours 67,291Student Volunteerism Hours 482,590Total Volunteerism Hours 549,881Value of Staff and Faculty Volunteerism Hours $1,585,386Value of Student Volunteerism Hours $11,369,811Total Value of Volunteerism Hours $12,955,197Grand Total $16,734,109
33
Appendix A: Terms & Definitions
Study Year
Dollar Year
Total Economic Output/
Economic Impact
Direct Economic Impact
Indirect Economic
Impact
Induced Economic
Impact
Multiplier Effect
Government Revenue/
State and Local Tax
Impact
Direct Employment
Indirect Employment
Induced Employment
FY 2019
Presented in 2019 dollars
Includes organizational spending on operations, capital expenditures, labor income expenditures,
and value added to the economy as a result of expenditures made by an organization. It is the
combined impact of direct, indirect, and induced impacts.
All direct expenditures made by an organization due to its operating expenditures. These include
operating expenditures, capital expenditures, and pay and benefits expenditures.
The indirect impact includes the impact of local industries buying goods and services from other
local industries. The cycle of spending works its way backward through the supply chain until all
money is spent outside of the local economy, either through imports or by payments to value
added (multiplier effect).
The response by an economy to an initial change (direct effect) that occurs through re-spending
of income received by a component of value added. IMPLAN’s default multiplier recognizes that
labor income (employee compensation and proprietor income components of value added) is not
lost to the regional economy. This money is recirculated through household spending patterns
causing further local economic activity (multiplier effect).
The multiplier effect is the additional economic impact created as a result of the organization’s
direct economic impact. Local companies that provide goods and services to an organization
increase their purchasing by creating a multiplier (indirect/supply-chain impacts). Household
spending generated by employees of the organization and the organization’s suppliers create a
third wave of multiplier impact (induced/household-spending impacts).
Government revenue or tax revenue that is collected by governmental units at the state and local
levels in addition to those paid directly by an organization. This impact includes taxes paid directly
by the organization itself, employees of the organization, and vendors who sell products to the
organization and at the household level.
Total number of employees, both full-time and part-time, at the organization based on total jobs,
not FTEs.
Additional jobs created as a result of an organization’s economic impact. Local companies or
vendors that provide goods and services to an organization increase their number of employees
as purchasing increases, thus creating an employment multiplier.
Additional jobs created as a result of household spending by employees of an organization and
the employees of vendors. This is another wave of the employment multiplier.
34
Source: Parker Philips using IMPLAN with data from SDBOR
35
Appendix B: State & County Impacts
Economic
Employment
Local & Tax Impact
State Clay County
$478.9 million
3,368 jobs
$18.7 million
$287.3 million
2,021 jobs
$11.2 million
Impact of University of South Dakota
Economic
Employment
Local & Tax Impact
State Brown County
$180.7 million
1,008 jobs
$6.8 million
$108.4 million
605 jobs
$4.1 million
Impact of Northern State University
Impact of South Dakota State University
Economic
Employment
Local & Tax Impact
State Brookings County
$936.3 million
4,848 jobs
$31.6 million
$561.8 million
2,909 jobs
$19.0 million
Economic
Employment
Local & Tax Impact
State Lake County
$137.4 million
908 jobs
$5.7 million
$82.4 million
545 jobs
$3.4 million
Impact of Dakota State University
Impact of Black Hills State University
Economic
Employment
Local & Tax Impact
State Lawrence County
$135.9 million
1,019 jobs
$5.0 million
$81.5 million
611 jobs
$2.9 million
Impact of South Dakota School of Mines and Technology
Economic
Employment
Local & Tax Impact
State Pennington County
$131.4 million
916 jobs
$4.3 million
$78.9 million
550 jobs
$1.3 million
36
Appendix C: Data & Methods
Data used to complete the contribution analysis was provided by the South Dakota Board of Regents and the university.
Data supplied included operating expenditures, capital spending, pay and benefits, and total employees. Primary and secondary
data was used to complete the input-output models in IMPLAN. The study approach and economic-impact findings are a
conservative estimate of impact and are based on actual financial information. The study is a snapshot of the economic impact
of the university.
OVERVIEW AND THE IMPLAN MODEL
The most common and widely accepted methodology for measuring the economic impacts of economic sectors is input-output
(I-O) analysis. At its core, an I-O analysis is a table that records the flow of resources to and from companies/organizations and
individuals within a region at a given time. For a specified region such as a state of the nation, the input-output table accounts
for all dollar flows among different sectors of the economy in a given period. With this information, a model can then follow how
a dollar added into one sector is spent and re-spent in other sectors of the economy, generating outgoing ripples of subsequent
economic activity. This chain of economic activity generated by one event is called the “economic multiplier” effect.
The primary tool used in the performance of this study is the I-O model and dataset developed and maintained by IMPLAN
Group LLC (formerly Minnesota IMPLAN Group Inc.). IMPLAN is a widely accepted and used software model first developed by
the U.S. Forest Service in 1972. Data used in the baseline IMPLAN model and data set come largely from federal-government
databases. The input-output tables themselves come from the Bureau of Economic Analysis. Much of the annual data on labor,
wages, final demand, and other market data comes from the Bureau of Labor Statistics, the U.S. Census Bureau, and other
government sources.
Government agencies, companies, and researchers use IMPLAN to estimate the economic activities associated with spending
in a particular industry or on a particular project. The IMPLAN model extends conventional I-O modeling to include the economic
relationships among government, industry, and household sectors, allowing IMPLAN to model transfer payments such as
taxes. Producers of goods and services must secure labor, raw materials, and other services to produce their product.
The resources transferred to the owners of that labor or those raw materials and services are then spent to secure additional
goods and services or inputs to the products they sell. For example, an organization in a region may develop a company that
produces tractors with a value of $1 million. However, to produce that product, they may be required to spend $500,000 in
wages and benefits, $200,000 to suppliers of tractor parts, $100,000 for electricity, $50,000 for transportation of goods and raw
materials to and from the plant, and $50,000 in various professional services associated with operating a business (e.g.,
attorneys and accountants). The suppliers will, in turn, spend those resources on labor and raw materials necessary to produce
tractors. Workers and the owners of the company will buy goods and services from other firms in the area (e.g., restaurants and
gas stations) and pay taxes. The suppliers, employees, and owners of this second tier will, in turn, spend those resources on
other goods and services whether within the study region or elsewhere. The cycle continues until all of the money leaves the
region.
37
IMPLAN METHODOLOGY
The model uses national production functions for over 536 industries to determine how an industry spends its operating
receipts to produce its commodities. These production functions are derived from U.S. Census Bureau data. IMPLAN couples
the national production functions with a variety of county-level economic data to determine the impacts at a state and
congressional-district level. IMPLAN collects data from a variety of economic data sources to generate average output,
employment, and productivity for each industry in a given county. IMPLAN combines this data to generate a series of economic
multipliers for the study area. The multiplier measures the amount of total economic activity generated by a specific industry’s
spending an additional dollar in the study area. Based on these multipliers, IMPLAN generates a series of tables to show the
economic event’s direct, indirect, and induced impacts to gross receipts, or output, within each of the model’s more than 536
industries.
The model calculates three types of effects: direct, indirect, and induced. The economic impact of BHSU is the sum of these
three effects.
CONSIDERATIONS CONCERNING IMPLAN
There are three important points about the use of IMPLAN (or any other input-output model):
It is a fixed-price model. The model assumes that changes in consumption are not limited by capacity and do not affect prices.
This assumption does not cause a problem for the analysis presented here because we are taking a snapshot of South Dakota
in a specific year.
As in many studies using this type of model, the direct impacts are not calculated by the model; they are a reflection of actual
spending levels and patterns created by South Dakota. Changing the level of direct spending allows us to calculate the
magnitude of the indirect and induced effects associated with the initial level of spending.
Because the model continues to calculate additional spending until all of the money leaves the region (i.e., “leakage”), the larger
and more economically diverse the region, the longer it will take for spending to leave the region and the larger the impact is
likely to be. For example, employees of South Dakota may spend some amount of their income on buying a car. If there are no
car manufacturers in their state or county, this spending will leave the region and the multiplier effect will stop. At the national
level, some portion of that same spending by that same individual may go to a national auto producer. That spending would lead
to more spending at the national level than would be captured by a more regional model. The national impact will be larger than
the sum in the individual states, and the individual state impact will be larger than the sum of the impacts in its congressional
districts.
38
Appendix D: FAQ’s
WHAT IS AN ECONOMIC-CONTRIBUTION ANALYSIS?
Technically, this study is a contribution analysis. The study quantifies the economic contribution of the university in terms of
economic impact, jobs, and local and state tax revenue. The study calculates how spending by employees, visitors, and students
contributes to the economy of South Dakota and beyond. It examines how expenditures create additional impact in the economy
directly and through the multiplier.
For the purposes of this study, an economic contribution is defined as the gross changes in South Dakota’s existing economy
that can be attributed to the universities. Contribution analysis is a descriptive analysis that tracks gross economic activity: how
spending by the university and its constituencies cycles dollars through the economy. The university’s economic-contribution
analysis does not consider how spending at this university may crowd out spending at another college or university within the
state. This type of analysis is one of the most common that is performed and is often mislabeled as an economic-impact study.
Please note that while the terms used to express the contribution of South Dakota to the statewide economy are referred to as
economic impact, this is a contribution analysis.
Spending by students, staff, and faculty who are explicitly participating in activities associated with South Dakota’s output
represents a “stemming-from effect” and could also be considered a direct effect of the higher-education industry. For example,
a student who attends classes and spends $10 on lunch at a local restaurant is a stemming-from effect of the university. This
contribution analysis then follows the direct economic activity and associated stemming-from effects through the economy,
with the output of each sector broken down and attributed to expenditures on intermediate inputs or to value-added
components such as labor, taxes, and returns to capital. Output multipliers, which are sector- and region-specific, are derived
from the appropriate model and relate an industry’s economic activity (or changes in the industry’s economic activity) to gross
sales in the other sectors of the regional economy.
The contribution analysis does not account for the fact that if a student attending class were a local resident, then the $10 they
spent on lunch potentially represents $10 they are not spending at another restaurant elsewhere in town. The direct effect in a
contribution analysis includes purchases by students from in and out of state and is neither a measure of changes to the state’s
economic base nor a measure of the value added to the region above what was paid to input suppliers.
WHAT SHOULD YOU REMEMBER ABOUT THE STUDY WHEN YOU READ IT?
• It is a point-in-time calculation of impact for FY 19.
• It quantifies the amount of impact that the universities produce each year.
• The economic numbers can fluctuate from year to year based on operational spending, capital spending, pay and
benefits, number of employees, number of students, and state appropriation.
• This is an economic-contribution analysis that casts a broader net to calculate impact than an economic-impact
study.
• These are conservative numbers and adhere to industry-respected protocols.
39
WHAT METHODOLOGY WAS USED TO COMPLETE THIS STUDY?
IMPLAN data and software were used to conduct this economic-contribution analysis. The IMPLAN database is built using
county, state, ZIP code, and federal economic statistics that are specialized by region, not estimated from national averages,
to measure the contribution or impact of an organization’s economic activity.
WHAT WERE THE MULTIPLIERS FOR THIS STUDY?
The multipliers used in this study range from 1.8 to 2.1. The multipliers are derived through the input-output models created
using the IMPLAN software based upon industries selected during the modeling process.
WHAT DATA DOES THIS STUDY USE TO CALCULTE THE ECONOMIC IMPACT?
Primary data used in this analysis is for FY 19 and was obtained from the South Dakota Board of Regents and the university.
Data addresses the following subjects:
• Operating expenditures.
• Capital expenditures.
• Pay and benefits by employee type.
• Number and types of students (all in-state and out-of-state students included).
• Athletics.
• Volunteerism.
• Charitable giving.
• Alumni data.
Secondary data was used to estimate the following:
• Student spending habits based on the universities’ budgets for spending (full- and part-time undergraduate and
graduate students, excluding tuition and fees).
• Visitor numbers and visitor spending habits (day and overnight visitors).
WHAT ARE THE COMMUNITY-BENEFIT IMPACTS BASED UPON?
Charitable-giving impacts are based upon assumptions found in the U.S. Census donor data. These models do not assume
a 100% participation rate for staff, faculty, and students and are not based on averages. Some colleges and universities had
primary data available on volunteerism, and in those cases actual hours were used in the calculation. For the purposes of this
study, it is assumed that 24.9% of staff and faculty donate an average of $2,064 annually and 14.9% of students donate an
average of $250 each year.
Volunteer impacts are based upon assumptions found in the U.S. Census, and the value of a volunteer hour was obtained
from the Points of Light Foundation and is estimated at $23.56 per hour.
WHY DID THE SDBOR COMMISSION A STUDY?
The SDBOR commissioned the analysis to quantify the impact of all six public higher education institutions in its system.
SDBOR and the university have a number of helpful tools to explain the value proposition for supporting higher education;
this independent study is one way to help explain its worth. In trying to explain the value of South Dakota public higher
education to internal and external constituents, it is important to quantify the workforce and economic gains realized
throughout the state. There are many ways to view the impact and value of a university and university system — economic
impact is one.
WHY DOES THIS STUDY LOOK DIFFERENT FROM OTHERS WE HAVE SEEN PUBLISHED?
The veracity of the data and methodology are consistent with industry-standard protocols for conducting an effective
economic-impact study that is conservative. The data is an independent assessment of the university’s contribution to the
overall economy — the numbers drive the message, not the other way around. The report is designed to make the data
analysis accessible to all readers.
40
Get in touch now
South
Dakota
BOARD of
REGENTS
306 E Capitol Ave
Suite 200
Pierre, SD 57501
605.773.3455
info@SDBOR.edu
SOUTH DAKOTA STATE UNIVERSITY
FY2019 ECONOMIC IMPACT
BROOKINGS LEADER ROUNDTABLE
JANUARY 2022
SOUTH DAKOTA STATE UNIVERSITY ECONOMIC IMPACT OVERVIEW
▪Estimated economic impact increased 22% from
2010 to 2019 to $936 million
▪SDSU student spending added an estimated $78.5
million in economic impact in FY19
▪SDSU research activities added an estimate $104.5
million in economic impact in FY19
▪SDSU generated a total of $31,584,827 in state and
county taxes in FY19
▪Estimated direct economic impact of all in-state
alumni is $100.8 billion
766.2
963 936
2010 2016 2019
ECONOMIC IMPACT (MILLIONS)
SOUTH DAKOTA STATE UNIVERSITY ECONOMIC IMPACT OVERVIEW DETAIL
▪SDSU has increased it’s economic impact by $170 million.
Demonstrating a total increase of 22% over 9 years.
•2010 and 2016 studies: REMI model, USD
•2019: IMPLAN model, Parker Philips
▪Total economic impact: $936.3 million
•Direct: $577.5 million
•Indirect: $167.2 million
•Induced: $191.6 million
▪Operations: $836.4 million
▪Student spending: $78.5 million
▪Visitor spending: $21.5 million
▪FY19 State General Fund budget: $68.4 million
766.2
963 936
2010 2016 2019
ECONOMIC IMPACT (MILLIONS)
ECONOMIC IMPACT HIGHLIGHTSSTUDENT IMPACT
•Overall economic impact of SDSU in
terms of numbers of students was
$81,537.
•Actual student spending outside of
SDSU operations added an
estimated $78.5 million impact.
•Another unpublished study estimated
that 100 student increase adds $2.6
million value and $3.6 million in
product sales.
•Average off-campus direct spend per
student was $8,860 annually.
Total Economic Impact Results per 100 Students
Impact
Type Empl.
Labor
Income Value Added Sales
Direct
Effect 27 $ 1,598,709 $ 1,778,294 $ 2,101,449
Indirect
Effect 1 $ 60,667 $ 103,553 $ 230,210
Induced
Effect 8 $ 384,036 $ 671,958 $ 1,224,872
Total
Effect 36 $ 2,043,412 $ 2,553,805 $ 3,556,531
ECONOMIC IMPACT HIGHLIGHTS:RESEARCH –NEW KNOWLEDGE AND INNOVATION
•By partnering with private industries, such as PBI,
SDSU creates economic value through innovation.
•SDSU had 23 invention disclosures, 10 parents filed, 1
patent issued, and 2 license agreements signed during
FY 19.
SDSU Public-private Research and Development
Opportunities•In FY19 $67.6 million was directly expended in
research at SDSU across the state
•Grants and contracts expenditures: $46.8
million
•Internal and in-kind expenditures: $20.8
million
•Economic impact of expenditures:
•$104.5 million in economic impact, $59
million direct, remainder indirect and
induced
•603 jobs supported
•Economic impact of knowledge and innovation
•127 invention disclosures –FY17 –FY21
•12 patents issued
•25 license agreements
ECONOMIC IMPACT HIGHLIGHTS:RESEARCH –NEW KNOWLEDGE AND INNOVATION
•EXAMPLE: Prairie AquaTech
•$2.5 million state funds for
research
•$20 million additional research
funds secured
•Bioprocessing technology invented
•License to Prairie AquaTech
•Production scaled
•$100 million investments
•60 employees
•Global sales
SOUTH DAKOTA STATE UNIVERSITY
ECONOMIC IMPACT OVERVIEW:
STATE AND LOCAL TAXES
▪SDSU generated a total of $31,584,827 in state and county taxes in FY19.
▪Includes effects of students,employees,and related constituencies.
▪Direct generation:$17.4 million
▪Indirect generation: $5.4 million
▪Induced generation:$8.8 million
▪By jurisdiction…
•State: $15.7 million
•County and sub-county:$15.9 million
SOUTH DAKOTA STATE UNIVERSITY
ECONOMIC IMPACT:
ALUMNI
▪Alumni embody the net transfer of knowledge created and disseminated into the skill sets and
personal qualities of people
▪2,600 students received degrees in 2019
▪36,664 alumni (52%) live and work in South Dakota
▪Impact of cumulative average earnings over an estimated 40-year career:
•$100.8 billion earnings
•$4.5 billion tax impact
•670,964 jobs supported
SOURCES
•South Dakota State University: GETS IT DONE, Parker Philips Inc., (2021)
•Economic Impact of South Dakota State University Enrollment Decline, Decision Innovation Solutions,
(2020)
•The Economic Impact of South Dakota's Public Universities, South Dakota Board of Regents, (2016 -2017)
•The Economic Impact of South Dakota's Public Universities, South Dakota Board of Regents, (2009 -2010)
•Analyzing the Economic Impact of Transportation Projects using RIMS II, IMPLAN, and REMI, Lynch Tim,
(2000)
•Economic Impact of South Dakota State University Enrollment Decline, Decision Innovation Solutions
(unpublished report, March 2020).