Oct. 17—MITCHELL — The Mitchell Area Development Corporation is one step closer to ensuring Mitchell residents have a well-maintained place to live.
Thanks to the Mitchell Area Housing Inc. program, a nonprofit housing organization that helps families secure quality housing and promote the benefits of homeownership.
In 2023, MAHI launched a transformative rehabilitation program for low-income homeowners inspired by Homes Are Possible, Inc. (HAPI) in Aberdeen, which guided MAHI during its development. In 2022, HAPI helped 42 families purchase homes and rehabilitated 37 homes.
“HAPI not only shared their grant application expertise, but also provided initial financial assistance,” said MADC Vice President Geri Beck, who oversees the program.
In its first year, MAHI secured $178,176 in funding from various sources, including a $100,000 Building Inclusive Growth (BIG) grant from the South Dakota Community Foundation, to help residents, especially single mothers and the elderly, manage their maintain and improve homes. MAHI completed eleven projects in its first year.
In its second year in 2024, MAHI increased its total funding to $397,750, with significant contributions from South Dakota Housing and additional grants. To date, MAHI has completed thirteen projects and is optimistic about completing three more projects by the end of the year.
Eligibility for the rehabilitation program includes homeownership and non-mobile home occupancy, with income limits lower than 80% of median income based on family size.
“We want to ensure that our resources get to those who need them most,” Beck emphasized.
Mitchell faces housing challenges, according to Beck, because the community has many homes built before 1940 that require substantial renovation. According to recent data from the U.S. Census Bureau’s American Community Survey, about 25% of Mitchell households are cost-burdened, spending more than 30% of their income on housing.
MAHI’s efforts align with national initiatives to meet housing needs and fill a critical gap by preserving affordable housing and preventing displacement.
“Our priority is to get these homes into living conditions so people can stay in their homes,” Beck said.
MAHI’s work aligns with HUD’s national goals to prevent homelessness by improving conditions for low-income homeowners. In cases where homes are beyond repair, MAHI offers to purchase the lot and help families find Section 8 housing, with the city reimbursing MAHI for demolition costs.
“Usually we can turn the lot into an infill lot,” Beck noted.
The rehabilitation program works like a forgivable loan, reducing the mortgage by 20% each year as long as the homeowner meets the program criteria. If any terms are violated, a refund will be required.
Beck noted that federal funding dictates that any necessary repairs must be addressed comprehensively. In contrast, government financing offers more flexibility, allowing targeted individual repairs to meet urgent needs.
For example, Beck explores financing options for a single mother in Mount Vernon who faces extensive repairs, including a damaged furnace. Beck is concerned that the level of repairs needed may exceed what federal funding can cover.
“If I can use some of the state funding, I hope to at least provide a new furnace so it can provide heat through the winter,” Beck said.
Grantees like Charles Stainbrook, who replaced the windows in his 1900s home, and Cassie Bierman, who had two windows replaced, along with a new air conditioner, furnace and roof, highlight the program’s impact.
“The rehabilitation program has helped me make necessary upgrades to my home for my boys and me,” Bierman said. “I couldn’t afford to do these things alone.”
Angela Trode also found relief thanks to support from MAHI. Trode faced overwhelming repair costs after purchasing an older home.
Shortly after moving in, Trode discovered that the roof had pre-existing hail damage, which her homeowner’s insurance company would not cover unless it was replaced. Faced with an estimated $16,000 in repair costs, Trode felt unsure about how to handle the costs.
Fortunately, she heard about the MAHI rehabilitation program at a vendor fair at her workplace and decided to sign up. When Beck came to assess the situation, she identified not only the need for a new roof, but other issues that required attention. The basement bedroom had no egress window, a crucial safety feature, and the outdated heating and air conditioning systems, which date back to 1994, struggled to maintain a comfortable temperature for Trode and her two children.
With support from MAHI, Trode received a new roof, egress window and upgraded HVAC system.
“It’s made a huge difference,” Trode said.
When she turned on the heat for the first time earlier this week, her son noticed how warm it was, even though she had set the thermostat to 64 degrees.
Beck emphasized that the program focuses on essential repairs rather than cosmetic changes.
Trode encourages others in similar situations to consider applying.
“The application is not complicated. Geri walked me through the entire process. You never know, you may qualify for much-needed assistance,” Trode said.
Looking ahead, Beck aims to complete 20 projects per year. For 2025, MAHI plans to apply for $392,000 in grants, including a request from South Dakota Housing, which has already approved $214,000.
“If we can complete 20 projects a year for 10 years, we can make a significant difference,” Beck said.
