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For homeowners facing financial hardship, finding a reliable South Dakota mortgage relief program is a critical step toward securing housing stability. The primary resource for emergency mortgage support is the SD Cares Housing Assistance Program, a state-administered initiative designed to help those impacted by economic challenges.
However, this is just one piece of a larger network of support. True relief often involves a combination of programs, including long-term cost reduction through property tax exemptions and specialized federal aid for rural residents. Navigating these options can be overwhelming, but understanding the distinct purpose of each program is the key to identifying the right solution for your specific situation.
The landscape of homeowner assistance in South Dakota is not a single, one-size-fits-all program. Instead, it is a collection of targeted solutions administered by different state and federal agencies. Eligibility is often segmented based on specific criteria such as the root cause of the financial hardship, the homeowner's personal circumstances, and even the geographic location of the property.
This approach ensures that aid is directed where it is most needed, but it also requires homeowners to carefully assess which pathway aligns with their needs. The following sections provide a clear and detailed breakdown of each major assistance program available to South Dakota homeowners.
The SD Cares Housing Assistance Program represents South Dakota's implementation of the federal Homeowner Assistance Fund (HAF), a nationwide effort to prevent mortgage delinquencies and foreclosures. Administered by the South Dakota Housing Development Authority (SDHDA), this program is the state's most direct form of emergency mortgage relief for those who have faced economic setbacks. While related rental assistance programs may have concluded, the homeowner portion of SD Cares remains a distinct and vital resource.
A Loan, Not a Grant: Understanding the Assistance
One of the most critical details for applicants to understand is the structure of the mortgage assistance. For mortgage-related costs, the aid is provided as a one-time reinstatement loan, not a grant that can be forgiven. This means the funds must eventually be repaid.
The program offers up to $25,000 in the form of a zero-interest, deferred-payment loan. This structure has significant long-term implications:
This creates a lien on the property. While it provides immediate relief, homeowners must account for this repayment when making future financial plans. In contrast, any assistance received for utility bills through the program is structured as a grant and does not need to be paid back.
What Costs Are Covered?
The SD Cares program is designed to cover a range of housing-related expenses to bring a homeowner's accounts current. Eligible costs include:
Eligibility Requirements: A Detailed Checklist
To qualify for assistance from the SD Cares Housing Assistance Program, homeowners must meet a specific set of criteria established by the U.S. Treasury and SDHDA.
The Application Process: A Step-by-Step Guide
Navigating the application requires careful preparation. Following these steps can help ensure a smooth process.
3. Complete the Online Application: The official application must be completed online through the (https://sdcareshousingassistance.communityos.org/). The portal is mobile-friendly and guides applicants through each section.
4. Monitor Your Application Dashboard: After submitting, applicants will receive an email from no-reply@communityos.org with a unique link to their personal application dashboard. All required documents must be uploaded through this portal for the application to be considered complete.
Beyond emergency aid, South Dakota offers several long-term programs designed to reduce the ongoing financial burden of homeownership, particularly for those on fixed incomes. Because property taxes are often paid through a mortgage escrow account, a reduction in taxes can directly lower a homeowner's monthly payment. This makes these programs a powerful, proactive tool for maintaining mortgage affordability.
The state offers a variety of programs, each tailored to a specific demographic. The table below provides a quick comparison to help homeowners identify which option may be the best fit.
| Program Name | Primary Benefit | Key Eligibility Group | Application Deadline | Administering Office |
|---|---|---|---|---|
| Sales & Property Tax Refund | Annual cash refund of taxes paid | Seniors (65+) & Disabled | July 1 | Dept. of Revenue |
| Assessment Freeze | Freezes property's assessed value to limit future tax increases | Seniors (65+) & Disabled | April 1 | County Treasurer |
| Homestead Exemption | Defers property tax payments until the property is sold | Seniors (70+) | April 1 | County Treasurer |
| Disabled Veteran Exemption | Exempts up to $200,000 of assessed value | Totally disabled veterans | November 1 | County Assessor |
| Paraplegic Veteran Exemption | Full property tax exemption | Paraplegic veterans / loss of use of lower extremities | November 1 | County Assessor |
Detailed Program Breakdowns
Sales & Property Tax Refund for Senior & Disabled Citizens
This program provides a direct refund of sales or property taxes to eligible individuals. To qualify, applicants must be at least 65 years old or meet the Social Security definition of disabled, have been a South Dakota resident for the entire previous year, and meet strict income limits. Applications are accepted by the Department of Revenue between May 1 and July 1 each year.
Assessment Freeze for the Elderly & Disabled
This program offers protection against rising property taxes by freezing the assessed value of a qualifying home. It does not lower current taxes but prevents them from increasing due to rising property values. Eligibility requires being 65 or older or disabled, owning the home, and residing in it for at least 200 days of the previous year. Applications must be submitted to the local county treasurer by April 1.
Property Tax Homestead Exemption
For seniors aged 70 or older, this program allows for the deferment of property tax payments until the home is sold. The deferred taxes accrue as a lien on the property and must be paid with interest before the title can be transferred. Individuals who qualify for this program are not eligible for the Sales and Property Tax Refund. Applications are due to the county treasurer by April 1.
Programs for Veterans
South Dakota provides substantial property tax relief for disabled veterans.
For both veteran programs, applications must be submitted to the local county assessor by November 1.
For homeowners in rural communities or those with very low incomes, several federal and state-partnered programs offer a crucial safety net. These initiatives focus on both preserving existing homes and promoting sustainable homeownership.
USDA Section 504 Home Repair Program
Often, a mortgage default is triggered by an unexpected and catastrophic home repair bill. The USDA's Section 504 Home Repair program directly addresses this challenge, making it a vital foreclosure prevention tool. The program provides:
By financing these critical repairs, the program removes the immediate financial shock that could otherwise lead to default. Applications are accepted year-round at local USDA Rural Development offices.
USDA Section 502 Direct Loan Program
Also known as the Section 502 Direct Loan Program, this initiative helps low- and very-low-income households purchase safe and sanitary housing in eligible rural areas. Key features include:
This program provides a pathway to sustainable homeownership for families who cannot obtain credit elsewhere.
GROW South Dakota Homeownership Programs
GROW South Dakota is a statewide non-profit organization and a crucial partner in delivering housing solutions. As a HUD-approved housing counseling agency, it provides invaluable education and one-on-one guidance for homeowners. Furthermore, GROW South Dakota offers its own direct loan program and serves as a loan packager for the USDA 502 Direct Loan program, making it an essential access point for residents.
Navigating financial hardship and complex assistance programs can be daunting, but South Dakota homeowners do not have to do it alone. The following organizations provide free, expert guidance and are the official administrators of the programs discussed.
Finally, homeowners should be extremely cautious of unsolicited offers for mortgage relief. Scammers often target those in financial distress. Official programs like SD Cares are always free to apply for, and any request for a fee to access these services is a scam.
The primary initiative was the South Dakota Cares Housing Assistance Program (SDCHAP). Administered by the South Dakota Housing Development Authority (SDHDA), this federally funded program provided crucial financial aid to homeowners who experienced financial hardship due to the COVID-19 pandemic, helping them avoid mortgage delinquency and foreclosure.
No, the South Dakota Cares Housing Assistance Program is now closed. The program stopped accepting new applications in September 2024 as the allocated funds were fully utilized. Homeowners seeking assistance now must explore alternative resources through the SDHDA or other housing counseling agencies.
The financial aid distributed through this South Dakota mortgage relief program was a grant, not a loan. This was a significant benefit, as homeowners who received the assistance are not required to repay the funds. The goal was to provide direct relief without creating future debt for struggling families.
The SDCHAP provided comprehensive homeowner assistance by covering a range of expenses. This included delinquent mortgage payments to prevent foreclosure, overdue property taxes, past-due homeowner’s insurance premiums, and even utility bills. This broad coverage offered holistic support to ensure housing stability for eligible residents.
Eligibility for the South Dakota mortgage relief program required homeowners to have a household income at or below 150% of the Area Median Income. They also needed to have experienced a direct financial hardship after January 21, 2020, and own and occupy the property as their primary residence in South Dakota.
Yes, a key feature of this homeowner assistance was its ability to pay for delinquent property taxes. This helped prevent tax sales of properties for homeowners who may have been current on their mortgage but had fallen behind on tax payments due to a pandemic-related financial hardship.
The South Dakota mortgage relief program was instrumental in halting foreclosure proceedings. By providing funds to pay the full delinquent amount (a process known as reinstatement), the program brought the mortgage current. This cured the default status and allowed homeowners to exit active foreclosure and resume their regular payments.
The South Dakota Housing Development Authority (SDHDA) was the state agency responsible for administering the South Dakota Cares Housing Assistance Program. SDHDA managed the entire process, from handling the application intake and verifying eligibility to disbursing the federal funds directly to mortgage lenders and other service providers.
To qualify, applicants for mortgage assistance needed to provide several key documents. These typically included a government-issued photo ID, proof of income (such as tax returns or pay stubs), a copy of their mortgage statement, and documentation proving their COVID-19 related financial hardship, like an unemployment letter.
Since the SDCHAP is closed, your best immediate step is to contact a HUD-approved housing counseling agency in South Dakota. These nonprofit organizations offer free, expert guidance on negotiating with your lender, understanding your options, and identifying any other available local or federal foreclosure prevention resources.
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