Lloyd Companies Secures $4.2M in Tax Credits for 144-Unit Affordable Housing Development Across South Dakota

Lloyd Companies announced four affordable housing developments across South Dakota supported by nearly $4.2 million in tax credits awarded by the South Dakota Housing Development Authority for 2025, representing an increase from $3.3 million in the previous year.

The multifamily real estate projects will deliver 144 total units across Sioux Falls, Spearfish, and Madison. Lloyd Companies will serve as consultant, development partner, and general contractor for the developments.

"There was more funding available statewide, so there additional awards beyond what typically is done," said Kellen Erpenbach, senior financial analyst at Lloyd Companies. "We're excited to get started with needed new housing in multiple communities statewide."

Southeastern Behavioral Health Partnership in Central Sioux Falls

A multistory redevelopment in the 600 block of West 11th Street in central Sioux Falls will be developed in partnership with Southeastern Behavioral Health. The three-story building will include program and office space for Southeastern Behavioral Health on the main level and 55 studio, one-bedroom, and two-bedroom apartments above.

"Tax credits are a critical element of these projects. It's difficult to garner support for projects targeting low-income individuals without the dedicated programs like Low-Income Housing Tax Credits," Erpenbach said.

Residents will not be required to be Southeastern Behavioral Health clients but would benefit from on-site 24-hour services, including addiction, mental health, and counseling services. Lloyd Construction plans to break ground in summer 2026 and finish construction by the end of 2027.

"We anticipate high demand for these units especially from Southeastern Behavioral Health's current client base," Erpenbach said. "Having the supportive services on the ground floor is a really unique wrap-around services concept that we are excited to bring to fruition."

Rosa Parks Apartments

Twenty-nine new one-, two-, and three-bedroom apartments will be developed on the east side of Sioux Falls within walking distance of Rosa Parks Elementary. The development will be a collaboration with Lutheran Social Services of South Dakota and Community Health Worker Collaborative of South Dakota.

"This location is ideal for multifamily development," Erpenbach said. "Along with being so close to the school, it's near grocery, pharmacy, healthcare, and transportation resources."

Lutheran Social Services will offer a rental education program to future tenants.

Peak View II in Spearfish

In Spearfish, Lloyd Companies will develop Peak View II, a 32-unit expansion of the existing Peak View I community. The development will include appliances, central air, a community room, and playground.

"The lease-up period only took a few months which really speaks to the need for additional units in the community," Erpenbach said. Construction is planned to begin in spring 2026 with completion approximately one year later.

Madison Downtown Development

The fourth project involves a partnership with Inter-Lakes Community Action Partnership in downtown Madison, delivering 28 new affordable housing units. The development will include 2,500 square feet of ground-floor space dedicated to a community kitchen for meal programming.

The project received support from tax increment financing in addition to the tax credits. Construction is scheduled to begin in summer 2026 with completion anticipated approximately one year later.

Sources

Lloyd Companies