Central South Dakota News

U.S. Senator Mike Rounds (R-S.D.) today led the South Dakota Congressional delegation in sending a letter to Adrianne Todman, Acting Secretary of the U.S. Department of Housing and Urban Development (HUD), advocating for the preservation of affordable housing units in rural communities. Rounds, Senator John Thune (R-S.D.), and Congressman Dusty Johnson (R-S.D.) expressed concerns with the implementation of the Housing Opportunity Modernization Act (HOTMA) in South Dakota, which is creating undue hardship for some current tenants.

"Since the implementation of HOTMA, property owners have reported potential adverse effects, including the eviction of long-term tenants who have been deemed eligible for many years," the delegation wrote. "HUD-funded housing developments serve a vital housing need and sometimes it is the only rental housing option within a community. Therefore, we request that HUD consider waivers or exceptions for low-rent housing units located in rural communities with populations of 5,000 or less. By allowing these waivers or exceptions, we can make certain our rural communities maintain access to necessary housing resources, preserving the stability and viability of these critical housing options."

With HOTMA changes, some existing tenants would no longer be considered eligible due to newly implemented asset limitations. Therefore, Members asked HUD to allow for waivers from asset limits in the most rural communities like many in South Dakota. The proposed waivers or exceptions would allow tenants to reside at properties while being charged market rent if there are no eligible tenants available to occupy the unit. This approach would enable small Public Housing Agencies (PHA) to maintain viable housing options in South Dakota’s most rural communities where new development is often not feasible and avoid forcing long-time residents from their homes.

The full text of the letter is provided below:

+++

Acting Secretary Todman,

We write to express our deep concern regarding implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA) and its impact on rural housing communities. While we appreciate HUD's efforts to streamline affordable housing programs, new asset limits for Section 8 Project-Based Rental Assistance and Section 202/8 programs have raised significant issues, especially in South Dakota.

Since implementing HOTMA, property owners have reported potential adverse effects, including evicting long-term tenants who have been deemed eligible for many years. These tenants are now forced to reduce their assets' value or find alternative housing, creating undue hardship.

Giving property owners the ability to refrain from enforcing asset limit restrictions for existing tenants has proven helpful. In many areas, HUD-funded housing developments serve a vital need and sometimes are the only rental option within a community. Therefore, we urge HUD to consider additional options for properties located in rural communities such as those in South Dakota.

In South Dakota alone, there are 35 public housing authorities (PHAs), 26 of which have low-rent units directly impacted by new asset limitations. Notably, 21 PHAs are in communities with populations under 5,000; eight are in towns with fewer than 1,000 people. Mandatory implementation of asset limitation for all new tenants will impact PHA occupancy rates in these rural areas; increased vacancies will affect financial feasibility.

Therefore we request that HUD consider waivers or exceptions for low-rent units located in rural communities with populations under 5,000 people; proposed waivers would allow tenants residency while charging market rent if no eligible tenant exists; this allows small PHAs viable options where new development isn't feasible while avoiding displacing long-time residents.

By allowing these waivers/exceptions ensuring access necessary resources/stability/viability critical options preserved.

Thank you attention urgent matter prompt consideration response.

###