A new affordable housing project got a big boost from the city today. The new development is going in the southwest part of town near Tea-Ellis Road and 32nd Street.
Those behind the project say Wednesday's announcement fills a need in our community.
Last year, the city did something new.
Officials announced the city would be giving up to $500,000 to support a large affordable housing project in Sioux Falls.
Wednesday, we found out where the money is going.
"We are pleased to award $350,000 to Grandview LLC, owned by Mr. Ken Dunlap, for the purpose of constructing Westwood Apartments," Community Development Director Darrin Smith said.
"We have heard for a long time about the need for affordable housing. Well, I call that the talk. Doing the talk. But I think what we're looking at today is kind of doing the walk with it," Ken Dunlap with Grandview LLC said.
Westwood Apartments will be located on the southwest side of Sioux Falls.
The complex will house 56-units, and will be available to residents with incomes at or below 30 to 60 percent of the median income of the city.
"A family of 4 could have total household income of up to $43,300 and qualify to live in these apartments," Smith said.
The project will cost a total of $8 Million.
Darrin Smith with Community Development says the money from the city will be given as a loan, to be paid back over the next 32 years.
"Since 2010 we have tripled the amount of support at the local level, with local tax dollars for these programs," Smith said.
Units at the Westwood Apartments will range in cost from $369 to $825 a month.
"It's no deep dark secret. A project like this on the open market, you'd be looking at rents anywhere from probably in the neighborhood of $900 to $1,200 a month," Dunlap said.
Smith says this is something the city needs to continue to do, to help residents at all income levels.
"This is something that the city hopes to be able to do every year going forward," Smith said.
Construction on the apartments should begin next fall and be completed in the spring of 2015.