LIHTC Properties: Affordable Housing Options in South Dakota

If you're a renter in South Dakota facing challenges with rent, eviction, or repairs, there may be affordable housing options available to help. One important program is the Low-Income Housing Tax Credit (LIHTC), which creates rental homes at below-market rates for eligible renters. Knowing how LIHTC properties work in South Dakota—and your rights as a resident—can help you find secure, quality housing while understanding the application process and protections that apply under state law.

What Are LIHTC Properties and Who Qualifies?

The Low-Income Housing Tax Credit (LIHTC) program is a federal initiative administered in South Dakota by the South Dakota Housing Development Authority (SDHDA). Through this program, private developers receive tax credits for building or renovating apartments for low- and moderate-income renters. Properties participating in the program are known as LIHTC properties, and they must reserve a certain number of units for tenants who meet income limits.

Eligibility for LIHTC Housing in South Dakota

To qualify for a LIHTC apartment, your household income must be below a set percentage of the area median income (AMI). In most cases:

• Your income must be at or below 60% of the AMI for your county
• You may need to pass background checks and other property-specific requirements
• Some buildings reserve units for people with even lower income levels

To view open properties and detailed income limits for each county, check the SDHDA's Rental Housing Search tool.

How to Apply for LIHTC Housing in South Dakota

The application process is straightforward, but each property manages its own waitlist and paperwork. Here’s what to expect:

• Find available LIHTC properties near you using the South Dakota Rental Housing Search
• Contact the property manager for rental application forms and instructions
• Submit proof of income, identification, and any other required documentation
• Wait for approval or notification of placement on a waitlist

Required Forms for LIHTC Applications

• Tenant Income Certification (TIC) — This form verifies your household’s annual income. The property manager provides and reviews it with you at the time of application or recertification. For a sample and guidance, see the SDHDA Tenant Income Certification Sample (Form No. varies by project).
• Rental Application Form — Each LIHTC property uses its own rental application, requesting household, financial, and background details. Obtain this from the property’s on-site manager or website.

If you need assistance with forms or the verification process, you may contact SDHDA or legal support (see the resources below).

Your Rights as a LIHTC Renter in South Dakota

Renters in LIHTC properties have the same basic legal protections as any other tenant, along with some additional program safeguards:

• Landlords must follow state landlord-tenant law, including rules for security deposits, repairs, and eviction notices
• Rental increases in LIHTC properties are limited by federal program rules, but may occur annually within caps
• Evictions require proper notice and must follow South Dakota’s landlord-tenant laws

Legal Protections and Where to Get Help

Legal disputes between tenants and landlords in South Dakota are typically handled by county courts, with small claims and magistrate courts overseeing most rental cases. There is no statewide tenancy tribunal; for more information, you can visit South Dakota Unified Judicial System: County Courts Directory.

Key state legislation protecting your rights as a renter is found in South Dakota Codified Laws Title 43, Chapter 32 - Landlord and Tenant Law.

FAQ: South Dakota LIHTC Properties

1. How do I know if an apartment is a LIHTC property?
   You can identify LIHTC properties by searching the SDHDA Rental Housing Search tool or by asking the property manager directly. These apartments will advertise income-based rents and mention the tax credit program.
2. Can my rent increase in a LIHTC property?
   Yes, but rent increases are capped by federal limits and generally occur only when the area median income rises. Landlords must provide written notice of any changes.
3. What happens if I go over the income limit after moving in?
   If your household income increases, you can usually stay as long as no more than 40% of the units in the property are over-income. Discuss this with your property manager, as recertification happens annually.
4. Where do I send a complaint about unsafe conditions in my unit?
   First, notify your property manager in writing. If the issue isn’t fixed, you can contact the SDHDA or your local county court.

Need Help? Resources for Renters

• South Dakota Housing Development Authority (SDHDA) – Information, property search, and application guidance
• South Dakota Legal Aid – Free legal help for qualifying renters facing eviction or disputes
• South Dakota Courts Directory – Find your local courthouse for rental or eviction filings
• Review South Dakota landlord-tenant law for your legal rights and responsibilities

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1. South Dakota Housing Development Authority (SDHDA)
2. South Dakota Codified Laws Title 43, Chapter 32 (Landlord and Tenant Law)
3. HUD Area Median Income Limits
4. South Dakota Unified Judicial System: County Courts Directory

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