Federal Home Loan Teams Up With Dacotah Bank

Dacotah Bank and Federal Home Loan Bank Team Up for Housing Projects

Aberdeen, SD – Nearly 1,800 homes will be built or improved through the 2011 Federal Home Loan Bank (FHLB) of Des Moines’ competitive Affordable Housing Program (AHP). The bank recently awarded $15 million in housing grants to projects in the Midwest including North Dakota and South Dakota.

According to a press release, these projects will house families with children, seniors, persons with disabilities, at-risk youth, people in need of services and people who are homeless. The projects will create brand new homes, rehabilitate existing housing, and bring quality housing to both urban and rural communities.

“The Affordable Housing Program is a system that works because communities determine their own housing needs and partner with local financial institutions (like Dacotah Bank) and non-profit organizations to create solutions that work for them,” said Dick Swanson, president and CEO, FHLB Des Moines. “These funds come from our earnings and are not tax payer dollars, giving us the opportunity to leverage the good work of funding housing through the efforts of these organizations.”

The benefits of AHP extend beyond providing a home for low-income families – the program ensures affordable housing for future generations, creates jobs, and stimulates economic growth. Many times these projects draw on local businesses and contractors to complete the work.

Peggy Lunzman, director of mortgage banking, says Dacotah Bank is helping with four grants totaling nearly $1.8 million. “Three of the grants will fund home ownership and rental housing for the Sisseton Wahpeton Housing Authority at Sisseton, SD and Oglala Sioux Lakota Housing in Pine Ridge, SD. The fourth grant of nearly half a million dollars will assist Homes Are Possible, Inc. (HAPI) with a home rehab project in the Aberdeen market.”

Each year the FHLB commits 10 percent of its annual net income to developing affordable housing. FHLB Des Moines has distributed $193.4 million to create 40,157 housing units since the program was created in 1990. More information about Dacotah Bank is available at dacotahbank.com.