https://my.treas.gov/collab/orp/HAF Documents/HAF Grantee Plan Reviews/HAF Plan Review Documents/States/HAF -0055-SouthDakota/HAFP-0055-South Dakota-Final File Documents/HAFP-0055-South Dakota-Feedback Document 1.docx

Question (p.2)

• Will there be a method in your HAF program, early in the process of engaging with a household, 

to evaluate immediate threats to the housing stability of applicants, which may need to be 

addressed under an expedited or prioritized timeline (e.g. HOA liens, tax delinquencies, utility 

shut off)?

SDHDA is prepared to hit the ground running with an aggressive marketing campaign. The online applications will be processed in the order received but because of the harsh winter months 

in South Dakota, we will plan to prioritize utility shut off’s first. SDHDA has recently sent over 

1,000 marketing flyers to businesses were a potential homeowner may frequent, i.e; daycare 

providers, after-school programs, public libraries, church-based, and other community and 

school organizations in an effort to reach families that may need assistance. The HAF program 

will be a continuation of existing housing assistance for homeowners, it is not anticipated that 

there will be many households requiring the expediated or prioritized timeline.

We are adding a question to the application to ask the applicant if they have received 

foreclosure notices. We will then be able to pull reports identifying applicants so we can prioritize 

their applications.

Question (p.3)

• Please confirm your exclusion of reverse mortgages and explain what steps you have taken to 

assess the needs of homeowners with reverse mortgages. Please summarize any community 

feedback or data on which you have based this decision. 

SDHDA has excluded, at least initially, the reverse mortgage borrower. SDHDA believes by the 

very nature of this type of product that there is very low risk to these borrowers losing their 

home. If these homeowners do need assistance for delinquent taxes and other mortgage related 

fees, SDHDA would consider using HAF funds. 

SDHDA has re-evaluated the exclusion of reverse mortgages. If the homeowner is in need of 

assistance for delinquent taxes and other mortgage related fees, SDHDA would consider using 

HAF funds. This will be added to SDHDA’s Administrative Plan/Guide.

Question (p.6)

• How will your program leverage resources available through a loss mitigation process to benefit 

eligible homeowners and how will your program avoid using HAF funds in ways that duplicate 

relief that available loss mitigation options might provide?

As stated above, mortgage servicers will be encouraged to use HAF funds only to supplement 

other loss mitigation options offered by the servicer under investor requirements. SDHDA is 

considering a servicer affidavit to that affect.

As part of the application process and consideration for assistance, we see the role of the 

caseworker as also facilitating the conversation between the homeowner and their mortgage 

servicer so that the homeowner understands their options and can make the best decision for 

their situation. 
https://my.treas.gov/collab/orp/HAF Documents/HAF Grantee Plan Reviews/HAF Plan Review Documents/States/HAF -0055-SouthDakota/HAFP-0055-South Dakota-Final File Documents/HAFP-0055-South Dakota-Feedback Document 1.docx

The Mortgage Servicer should be providing some form of documentation such as a “No Help 

Letter” (sample in Exhibit C) that would explain how the Mortgage Servicer has explored other 

loss mitigation options and if those options are not available to the borrower, then the 

borrower(s) should be directed to potential help under the Homeowner Assistance Fund (HAF) 

program. 

Question (p.10)

• Your plan indicates $1,743,000 in excess funding for "either additional direct funding or for 

unexpected administrative expenses." Please explain the considerations for placing these funds 

in the administrative allocation and whether you plan to use the funds for additional direct 

assistance.

It is SDHDA’s hope that the remaining $1,743,000 will be available for additional funding for 

recipients. We believe, as with any new program there is an element of unknown. We also 

believe, as presented, the budgeted Administrative Costs should cover most of the expenses of 

running the program going forward. The $50,000,000 was a small state minimum and this may 

be more than what is needed to help South Dakotans. SDHDA may utilize more that the 

$150,000 for reimbursement of SDHDA funds already expended.

SDHDA has further reviewed and adjusted the proposed budget items and believes there may not 

be an excess in the $50,000,000 small state minimum that was awarded as previously 

determined.