WATCH: Financial help available to rehab Sioux Falls homes

Logan Penfield, housing development manager for the city, says new online system will streamline process to help residents.

Logan Penfield interview.PNG

SIOUX FALLS – The City of Sioux Falls is making it easier for residents to apply for financial assistance under a handful of programs to rehabilitate and repair their homes.

A new online application is scheduled to go live in June, which should streamline the process for many low- and moderate-income families to receive grants and loans through the Sioux Falls Housing Division.

“Adding an online application option has been a priority for our team, as it will streamline efficiencies for us and improve the application experience overall,” said Logan Penfield, housing development manager for the city. “Our team has a hands-on approach to helping applicants through this process, and we will continue that going forward, even with the application moving online.”

There are four primary programs to serve single-family homes, rentals, mobile homes and downpayments for public-safety workers in the city.

The money can help pay for things like plumbing, heating and cooling systems, electrical work, roofs, windows and screens, insulation and winterization, handicap accessibility, and necessary painting.


The housing programs are funded with a combination of federal Community Development Block Grants, state and local money.

The division had a $10.4 million budget for all programs this year.

In 2022, these programs supported 134 households in Sioux Falls.

The assistance programs have income guidelines based on the median household income in the city.

In most cases, that means households that make less than 80% of the MFI. That number for a family of four is currently $72,550 in Sioux Falls.

The housing division is available to help residents with questions or to complete the documentation, said Penfield.

You can contact the housing division by calling 605-367-8180.

Find more information about the program at .


Here is a breakdown of the programs:

Home Rehab before after 051723.PNG
A single-family home rehabilitation project funded by the City of Sioux Falls Housing Division shown before (above) and after.
Contributed / City of Sioux Falls

Single-Family Rehabilitation

Provides financial assistance for homeowners to repair or replace plumbing, heating/cooling systems, electrical work, worn or leaking roofs, windows and screens, insulation and winterization, handicap accessibility, necessary painting, and sidewalks.

Depending on household income, the program is offered either via deferred loan or grant.

For the deferred loan, the gross household income must not exceed 80 percent of the Median Family Income (MFI), and mortgage payments, taxes, and insurance must be current. The deferred loan is due upon the home’s sale or loan recipients moving out of the home. The deferred loan has zero interest.

In 2023, 80 percent of the MFI is $72,550 for a family of four.

For the grant option, the gross household income must not exceed 65 percent of the MFI. Grants are limited to $5,000 per household and are not required to be paid back. This assistance option, funded by the American Rescue Plan Act, is limited, and will end on December 31, 2024, or when all funds have been obligated to homeowners.

In 2023, 65 percent of the MFI is $58,950 for a family of four.


Rental Rehabilitation

Provides owners of registered rental property low-interest loans for materials used in exterior and interior rehabilitation.

Eligible exterior work includes roofing, doors, windows, porches, steps/stairs, gutters and downspouts, siding, paint, foundation repair, and driveway approaches.

Eligible interior work includes paint, wall repair, floor coverings, cabinetry, and insulation.

Work requiring licensed contractors including plumbing, mechanical, and electrical also qualify.

Rental property owners can apply for an up to eight-year, low-interest loan. The first six months, the interest rate is zero; month seven and beyond, the loan’s interest rate is 3 percent.

Mobile Home Repair

Provides financial assistance to residents who own a mobile home within Sioux Falls city limits.

Offers up to $5,000 to any one mobile home during its lifetime for exterior and interior work that keeps the mobile home in decent, safe, and sanitary conditions.

Applicants are income restricted to 80 percent Area Median Income (AMI), which is $72,550 annual income for a family of four.


The loan is forgiven after the applicant occupies the mobile home for one year after project completion.

Public Safety Down Payment Assistance

Aids in providing home ownership opportunities for police officers, firefighters, and other public safety employees.

Applicants can receive up to $20,000 or 20 percent of the purchase price (whichever is less) toward purchasing a home via a deferred/forgivable loan.

The property must have a purchase price at or below the South Dakota first-time homebuyer purchase limits, which was $340,000 in 2022.

Properties eligible for this program must also be in specific Sioux Falls neighborhoods that are qualified census tracts and socially vulnerable areas.

All properties purchased via this program are subject to recapture provisions if the property is sold within five years from the home’s purchase date.

Patrick Lalley is the engagement editor and reporter for Sioux Falls Live. Reach him at
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