Sky Ridge workforce housing program adjusted to 2022 standards
RAPID CITY, S.D. (KEVN) - Working and living in the same town could be considered a luxury for some.
“Workforce housing is a huge issue for not only Spearfish but for all of the Black Hills. We feel that we’ve taken an aggressive approach to try and help those that are working in our community and just starting out have an opportunity to own a home,” stated Spearfish Mayor John Senden.
In December of 2021, construction began on the first of 150 homes set to be built at Sky Ridge, a workforce housing complex in Spearfish.
“Right now, we’re very pleased to be in the process of having 20 homes in the process of being built. Looking for another 10 to go online this year,” said Senden.
When the program was created priority was given to home buyers in the federal 22% income tax bracket for category 2 homes and those in the federal 12% for category 1.
However, things have changed over the course of the past 2 years.
In 2020, interest rates were approximately 2% lower and the cost of all the homes in the Sky Ridge program have increased approximately $22,000.
“For those that were applying at the lower end of the income bracket, it really put a lot of pressure on them and some of them weren’t able to qualify for category 1 homes,” stated Senden.
This caused the city to re-evaluate the previous agreement and adjust it to 2022 standards.
“These adjustments are to identify and to help those people to qualify for homes and be a part of the project,” explained Senden.
Now, buyers at or below 115% of the median income for Lawrence County will be given priority for category 1 homes and 125% or below for category 2.
This will create a broader opportunity to buy for single people in the $41,000-$50,000 range and for joint applicants at the $83,000-$85,000 level.
“We think this a good program for Spearfish and hope that it will serve the workforce that we are trying to identify and keep here in Spearfish,” said Senden.
Copyright 2022 KEVN. All rights reserved.