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STATE LIHTC RESEARCH

South Dakota
QAP scoring guide.

South Dakota Housing Development Authority (doing business as "SD Housing") · 2026-2027 QAP

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● Verified guideChecked Sep 12, 2026View source QAP ↗
THE POINT TABLE

Competitive scoring

20 categories

Select a category to read its scoring criteria.

01

Deep Income Targeting

100 pts
Stacked tiers within the elected minimum set-aside: 25 pts for 20% of rent-restricted units at ≤50% AMI with rent at the lesser of FMR or the 50% AMI rent; +25 pts for an additional 10% of units at ≤50% AMI; +25 pts for 7% of units at ≤40% AMI; +25 pts for 3% of units at ≤30% AMI. Each tier is in addition to the prior tier.
02

Extended Use Commitment

20 pts
Voluntarily extending the Extended Use Period an additional 10 years (30→40 years). Mutually exclusive with the Tenant Ownership/Lease Purchase category (D).
03

Construction Type

60 pts
40 pts: rehab of existing affordable housing to like-new condition. 20 pts: rehab using buildings of historic nature. 20 pts: rehab/conversion of existing buildings to new rental units. 20 pts: senior housing designation (55+ or 62+). Exhibit 7's worksheet also lists 20 pts for assisted living/congregate care units. Category capped at 60 total even though sub-items can sum higher.
04

Concerted Community Revitalization Plan

20 pts
Project is in a Qualified Census Tract and contributes to a locally-adopted Concerted Community Revitalization Plan documented at application.
05

Financial Support

20 pts
Third-party financing/incentives that reduce cost or enhance feasibility, scored per unit: 20 pts for $10,001+/unit, 15 pts for $5,001-$10,000/unit, 10 pts for $1,000-$5,000/unit.
06

Applicant Characteristics

40 pts
20 pts for a demonstrated track record of quality affordable-housing development/management experience; 10 pts for ≥51%-owned/operated minority- or woman-owned enterprise participation; 10 pts for owner equity >10% of TDC not in the form of deferred developer fee. Deductions (not additive to the 40-pt cap): -25 pts if applicant/team member isn't in Good Standing (recent unapproved significant change or unresolved compliance issues, which also disqualifies the track-record points); -10 pts for 2 rounds if the developer/owner requested additional SDHDA funding after an initial reservation.
07

Service Enriched Housing

30 pts
Verifiable full-time, on-site tenant services.
08

Percentage of Soft Costs

30 pts
Sliding scale on soft costs (excluding builder's profit) as a share of TDC: 30 pts for 0-9.99%, 20 pts for 10-14.99%, 10 pts for 15-19%, 0 pts above 19%.
09

Project Location

40 pts
Up to 20 pts for proximity to community services (5 pts each for grocery/retail, hospital/clinic, school or senior center, special service office) OR 20 pts for a bus stop within one block / free transit ≥4x/week (10 pts for reduced-rate on-call transit). Up to 20 pts for Area of Opportunity factors (5 pts each): low-poverty census tract (<10%), above-average jobs-to-population ratio, below-average unemployment, above-average school performance index.
10

Households with Children

10 pts
At least 50% of units contain 2 or more bedrooms.
11

Public Housing Notification

10 pts
Written commitment to notify local public housing agencies of vacancies and give waiting-list households priority.
12

Readiness to Proceed – Plans and Specifications

30 pts
Architectural plans/working drawings at least 50% complete, or an independent/third-party physical needs assessment.
13

Readiness to Proceed – Site Control

30 pts
30 pts for a recorded warranty deed, recorded long-term lease, or approved Transfer of Physical Assets; 20 pts for an enforceable signed/accepted purchase agreement or option.
14

Readiness to Proceed – Financing

60 pts
20 pts for a construction/interim financing commitment; 20 pts for a permanent financing commitment with fixed rate and ≥15-year term (10 pts if fixed rate but <15-year term); 20 pts for an equity commitment disclosing all conditions with investor acknowledgment of use restrictions.
15

Readiness to Proceed – Utilities

40 pts
10 pts each (up to 40) for provider documentation that water, sewer, electricity, and heat (electric/gas/fuel oil) are currently at or immediately adjacent to the site with capacity to serve the project; proximity or extendability alone doesn't qualify.
16

Readiness to Proceed – Zoning

20 pts
Documentation the site is properly zoned or that zoning isn't required for the proposed use.
17

Readiness to Proceed – Platting

20 pts
Documentation the final plat is recorded, with plat book/number reference.
18

Project Characteristics

100 pts
Capped menu of construction/design features detailed in Exhibit 4 (Multifamily Project Characteristics): site exterior (parking, sidewalks, landscaping), building exterior (siding, roofing, windows/doors), energy-efficient design (wall/roof assembly, HERS/Energy Star, LED lighting), building interior (doors, flooring, laundry, bathrooms, appliances), and mechanical systems (HVAC, water heating). Individual line items sum to well over 100 points; the category award is capped at 100.
19

Tenant Ownership – Lease Purchase

20 pts
Project intended for eventual tenant ownership, with a management plan covering homebuyer counseling and future purchase-price calculation. Mutually exclusive with the Extended Use Commitment category (A.2).
20

Local Housing Need

100 pts
SDHDA discretionary assessment awarding the highest score to projects facing the greatest overall housing need; no stated formula. Communities already having 2+ LIHTC projects under construction or in lease-up (<90% occupied) may receive zero points here.
Scoring source

2026-2027 QAP, Section V Project Selection Criteria (pp.18-24): V.A Primary Selection Criteria, V.B Readiness to Proceed, V.C Project Characteristics (detailed checklist in Exhibit 4, pp.39-47), V.D Tenant Ownership – Lease Purchase, V.E Local Housing Need. Consolidated point totals and the 350-point submission floor are in Exhibit 7 Self-Scoring Worksheet (pp.61-62); the 400-point award floor is stated in the Section V introduction (p.18).

MODEL ASSUMPTIONS

Underwriting parameters

2026-2027 QAP (approved by the SDHDA Board of Commissioners, June 15, 2026): Section III.B Developer Fees (p.13), III.C Consultant Fees (p.14), III.D Builder/GC Fees (p.14), III.I Replacement Reserves (p.16), III.J Operating Reserves (p.16), III.K Debt Coverage Ratio and Interim Financing (pp.16-17), and Section IV Underwriting Standards fee-limit table (p.17). Fee schedule at Section VII Fees/Fines (pp.31-32). Average Income federal set-aside rules at Section II.A (p.11).

OPERATING ASSUMPTIONS

Utility allowance

Preferred method: None explicitly designated as required/default among the three permitted options (utility-company/service-provider estimate, HUD Utility Schedule Model, or SD Housing's own Utility Allowance Worksheet); applicant may choose. Local PHA utility allowance schedules are explicitly NOT allowed.

SD Housing Utility Allowance (UA) Worksheet ↗

2026-2027 QAP, Exhibit 8 (Application Checklist), Item 6 "Utility Allowance Calculation" (requires "Copy of utility allowance calculation and supporting documentation" but does not itself enumerate allowed methods); the specific allowed-methods list and the PHA prohibition are stated on SD Housing's Housing Tax Credits program webpage, not in the QAP document body.

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Development guides for South Dakota

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