117
Thunder Valley Regenerative Development Housing Plan April 2, 2015
Thunder ValleyRegenerativeDevelopmentHousing PlanApril 2, 2015
Thunder Valley Community Development Corporation Applicant Porcupine, SD
BNIM Planning and Architecture Kansas City, MO
DESIGN TEAM
ContentsExecutive Summary 1
Description of the Developer & Statement of Objectives 5
Project 9
Market Analysis 17 Current Population and Projection 18 Proposed Site 20 Proposed Project 22 Existing Community Services 24 Existing Housing Market 26 New Housing 29 Employment Opportunities 30 Interviews and Engagement 34 Conclusions 36
Feasibility 39 Business Strategy and Implementation 40 Feasibility Analysis 42 Marketing Feasibility 46 Management Feasibility 47 Financial Feasibility 51 Technical Feasibility 56
Conclusions and Summary 59
Appendices 63
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
1
Executive Summary
2
INTRODUCTION OF THE DEVELOPMENTThunder Valley CDC is building a regenerative community on the Pine Ridge Indian Reservation in Porcupine, South Dakota. This community development is the result of community engagement sessions through the Oyate Omniciye | Oglala Lakota Regional Plan.
DEVELOPMENT OBJECTIVES• To provide safe, high quality, affordable
homeownership opportunities to Lakota families
• To provide a model of sustainable mixed use development for North American tribes
• To encourage diversity of incomes in every phase of development
• To provide a safe environment focused on Lakota values, traditions and spirituality for Lakota youth
• To train a workforce in sustainable construction techniques and create new jobs on Pine Ridge Indian Reservation
• To incubate and accelerate entrepreneurial endeavors on Pine Ridge Indian Reservation
MISSION STATEMENTEmpowering Lakota youth & families to improve the health, culture and environment of our communities, through the healing and strengthening of cultural identity.
The development is a response to the need for economic development, policy changes, housing, job creation, and community empowerment and capacity building. Thunder Valley CDC believes in the importance of choosing resilient housing designs and infrastructure while keeping affordability for the family in the forefront of the decision-making process. With a need for over 4,000 homes on the Pine Ridge Reservation and over 50% of the population under 18, this project is imperative. There are currently no planned developments on the Pine Ridge Reservation, Thunder Valley CDC is creating a replicable model to meet that need. This community will be mixed-income with affordable market rate housing for families who are not eligible for subsidies. Low income and very low income families will be eligible for subsidies and sweat equity programs that ensure affordability for homeownership. The infrastructure needs for this development include potable water supply, wastewater treatment, stormwater conveyance and reuse, electrical supply, and road systems. The infrastructure designed through the Preliminary Engineering process will provide the community with healthy, safe systems for growing resilient homes and communities. This community development will provide housing, jobs, workforce development, economic development, and community empowerment in one of the poorest places in North America.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
3
SUMMARY OF FINANCIAL FEASIBILITYThe development of Phase 1 is made possible through the skillful coordination of grant funding from philanthropic organizations, State Infrastructure grant programs, State Infrastructure low-interest loan programs, and sweat equity programs that train a workforce in sustainable construction skills and provide homeowners a subsidy for working on the construction of their own homes. Each of these layers provides a step to affordable homeownership for Lakota families. And in order for Phase 1 to achieve a financial balance, each component of this complex equation must be orchestrated in a synchronized manner.
Thunder Valley CDC has time and time again shown their capacity to manage and solve complex equations and use funds granted to them wisely and for the greater good of their community. They have the confidence and support of private sector, philanthropic, and governmental (tribal and U.S.) partners. TVCDC has done their due diligence to plan a development that will be embraced by their community and serve a housing need and a workforce development need that is widespread in not only the Lakota Nation but other tribal nations as well.
Thunder Valley Regenerative Development will pave the way for other tribal communities to create affordable mixed use developments that offer new opportunities for homeownership, job training, entrepreneurship, healthy foods, cultural expression, and hope in a sustainable, healthy, self-sufficient future.
The construction for the majority of homes (12 total) will be funded through homeowner loans. Thunder Valley CDC will have joint custodial control of the construction loan along with the homeowner, who will be contributing sweat equity to the process as well. Therefore the financial feasibility of the development process is based on the affordability for homeowners rather than the potential for profit by a developer. The only homes for which Thunder Valley CDC plays a traditional developer’s role, by taking on the risk of a construction loan, are the homes built by the Workforce Development program and the market rate homes (9 total).
Another key element of the financial feasibility for Thunder Valley CDC and for the homeowners is that there will not be long term debt service on any construction loans. All loans will either be repaid during a 36 month time period, or infrastructure loans serviced through a sanitary district fund. (See pages 22 and 23 for further description of the proposed project.)
Please see the development proforma on pages 42 and 43 for the balance of sources and uses for Phase 1.
4
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
5
Description of the Developer & Statement of Objectives
6
THUNDER VALLEY CDC DESCRIPTIONThunder Valley Community Development Corporation is building a resilient and regenerative community on the Pine Ridge Reservation. We are creating an ecosystem of opportunity that: builds skills confidence, builds assets through homeownership, builds community wealthy, improves policy and builds equity, creates worker owned enterprises and cooperatives, and builds financial capabilities. We are able to do this because our foundation is rooted in people, prosperity, empowerment, sustainability, spirituality, and culture.
same energy of resiliency and community values. Nurtured from conversations voiced by youth to elders who realized we honor the best of our past by utilizing new tools, new ideas and new strategies as we create the opportunities of the future, Thunder Valley CDC came into being.
The Thunder Valley Community House was the first endeavor of this collective thought, moving from concerned community to putting in place tangible opportunities that could be shared beyond the geographic area of Thunder Valley. A 1,700 square foot community center was completed in 2007. It was built from donations and sweat equity from volunteers near and afar. The community house provides space for public use such as community meetings, faith based activities, and trainings and serves as proof that positive outcomes can arise beyond community conversations into something practical which serve a collective need.
Thunder Valley CDC was the lead organization in the Oyate Omniciye Oglala Lakota Regional Planning Process. This regional plan has been adopted by the Oglala Sioux Tribe as the official plan for the Pine Ridge Indian Reservation. This plan has leverage millions of dollars into this area and increasingly facilitates partnerships between local organizations. Thunder Valley CDC is the model community for this regional plan, one of the eleven initiatives of the plan.
We focus on four areas: People, Housing, Health, and Jobs, realizing that Community is at the heart of all we do. Our regenerative development is the direct result of community engagement and as a result we are creating a national model for building pathways to resilience. Our project is to create a regenerative community, our vision is to address the root causes of the historical injustices that exist on the Pine Ridge Reservation we believe that developing a regenerative community will provide solutions to some of these root causes. ORGANIZATIONAL STRUCTUREThunder Valley CDC is a 501(c)(3) non profit. We are a Community Development Corporation.
COMPANY HISTORYIn 1998 the rebirth of the ancient rite of traditional Lakota Sun Dance was reintroduced in the Thunder Valley community. This celebration of sacrifice, life and rebirth lay the foundation for change offering culture, tradition and a renewed sense of responsibility toward family and community. As this circle of change grows larger with each passing season, more and more individuals and families have become involved creating the energy and passion needed to set a powerful path forward.
The organization of Thunder Valley Community Development Corporation was created using this
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
7
LOCATION AND FACILITIESThunder Valley CDC is located on the Pine Ridge Indian Reservation in Shannon County in Porcupine, South Dakota. We are ¼ of a mile north of Sharp’s Corner, which is the geographic center of the reservation
TAXING AUTHORITYThe State of South Dakota is the taxing authority of this development. Those taxes then go to the Oglala Sioux Tribe
PRINCIPLES OF DEVELOPMENTAs a non profit developer, Thunder Valley CDC is in the unique position of trying to choose systems and design strategies that make the homes as affordable as possible for the families we serve, which are primarily low income. We also have high goals for sustainability and environmental stewardship. We want to choose systems that are good for the environment, are resilient, and save costs for the families long term. We make decisions for infrastructure and design with those ideals at the forefront of our development process.
DEVELOPMENT OBJECTIVES• To provide safe, high quality, affordable home
ownership opportunities to Lakota families.• To provide a model of sustainable mixed use
development for North American tribes• To encourage diversity of incomes in every
phase of development• To provide a safe environment focused on
Lakota values, traditions and spirituality for Lakota youth
• To train a workforce in sustainable construction techniques and create new jobs on Pine Ridge Indian Reservation
• To incubate and accelerate entrepreneurial endeavors on Pine Ridge Indian Reservation
DEVELOPMENT NEEDS• Potable water supply• Wastewater treatment, on site• Stormwater infrastructure• Electrical supply, mini grid for solar power
generated on-site• Road system and parking at 21 homes,
office, greenhouses, community building and workforce training facility
*All infrastructure alternatives and recommended approach are detailed in the Preliminary Engineering Report.
HOUSING NEEDS• Market rate, low income, and very-low income
home ownership opportunities• Financial literacy and home-owner literacy• Local job opportunities to maintain mortgage
stability• Workforce training to build skills for job
opportunities
TASKS TO ACCOMPLISH• Secure funding for infrastructure through
USDA Rural Development• Construction documentation for infrastructure• Construction documentation for houses• Coordination of infrastructure and workforce
training program to build houses
TIMEFRAMES OF COMPLETION• Funding secured, April 2015• Construction Documents complete, June 2015• Contractor’s notice to proceed, August 2015• Exterior work on first group of workforce
development homes completed by September 2015
• Infrastructure and interior work on first group of workforce development homes completed by mid-November 2015
8
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
9
Project
10
DESCRIPTION:Thunder Valley will develop a total of 21 units of single family housing in Phase 1 of the development at Thunder Valley. In order to achieve affordability , build community and increase the capacity of the local workforce Thunder Valley will deploying three different strategies in sweat equity and training models that will result between 15-30% cost savings for low income Native American families living in the development.
in the form of no-interest loans. SDHDA will take a mortgage position on the home site during construction and construction funds will be paid back once permanent financing is obtained through one of the following lending products: 502 direct, 502 guaranteed, 184 guaranteed, VA lending product, conventional mortgage or long term financing through SDHDA.
USDA 523 Mutual Self-Help ProgramThis program will have a total of two cohorts of six families over the two year Phase 1 period for a total of 12 units built in Phase 1 using this model. Thunder Valley CDC currently has a $288,000 pending Technical Assistance Grant from the USDA to start the first two cohorts and will reapply for the final two cohorts (for 12 units in Phase 2) when the Self-Help Program is up and running. This program will primarily be staffed by a Group Coordinator and Construction Trainer/ Supervisor with administration and planning support from the leadership team at Thunder Valley CDC. In the new master plan design there will be a total of 7 “culturally-based pocket sub-neighborhoods” throughout the development. The participants won’t only be building homes but neighborhoods and community with each other. The construction and permanent financing for the self-help houses will be coming primarily from the USDA 502 direct loan.
The above and following is an excerpt from the Thunder Valley Phase 1 Housing Plan (See attachment 3 for full plan.)
The three sweat equity programs being deployed at Thunder Valley include:
Workforce Development Through Sustainable Construction ProgramThis program has capacity to provide on-the-job training for 10 participants every 10 months where they will build a house from start to finish. Each participant will develop individual education and success plans. They will receive a stipend of $600 every two weeks. Thunder Valley staff for this program includes a Program Manager, Construction Trainer and Education Coordinator. This program is being funded by a 5-year $2.5 million dollar grant from the Administration for Native Americans under the Sustainable Employment Economic Development Strategies (SEEDS) grant program. The program, will produce one house every 10 months and a total of two houses within the two year Phase 1 Housing Plan at Thunder Valley. These homes will have between 15-30% sweat equity that will be passed down to low-income families for the purchase of their homes. The construction funds for these homes will come from the South Dakota Housing Opportunity Fund (SDHOF) administered by the South Dakota Housing Development Authority
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
11
FIGURE 1 : PHASE 1
FIGURE 2 : PHASE 2 FIGURE 3 : PHASE 3
Playground
Basketball Court
Bunkhouses
Community Building
Existing WorkforceTraining
Greenhouses
24’ wide road typ.(21) Single family homes typ.
Shared greenspace
Alleys and driveways typ.
Single family garden typ.
Existing NASHI House
12
Youth BuildThe Youth Build model will be focused on serving youth aged 16-24 who are currently unemployed and out of school. Through this program a cohort of 20-30 participants will be in the program for 10 months. The primary goals of this program is to build the skills and confidence of young people in the community. The by-product of this alternative education program will be a home built with equity in it that will be passed down to a low-income family for homeownership. The cohort will produce one home every ten months. This program is funded by a U.S. Department of Labor YouthBuild grant for $1.1 million to operate the program for a 27 month period. 70% of all Youth Build Grants are re-funded by the Department of Labor after obtaining first-time funding. In 2014 Thunder Valley CDC was a finalist for a Youth Build grant and are working with Youth Build USA Inc., the national technical assistance provider for the program, to increase our capacity and better position us for funding in 2015. If funded we would launch the program in September - October of 2015. The grant will pay for stipends, tools, equipment and staffing which includes: program manager, construction trainer 1, construction trainer 2, counselor, GED Tutor and case manager. Again, the result of this model is a subsidized house available for purchase. The equity in the homes, as a result of the program, will be passed down to a low income family for home ownership. The construction funds for materials to build the homes through this program will come from the South Dakota Housing Opportunity Fund (SDHOF) administered by the South Dakota Housing Development Authority in the form of
no-interest loans. SDHDA will take a mortgage position on the home site during construction. Construction funds will be paid back once permanent financing is obtained through one of the following lending products: 502 direct, 502 guaranteed, 184 guaranteed, VA lending product, conventional mortgage or long term financing through SDHDA. TVCDC is exploring the possibility that the YouthBuild Program could also be used to construct the shared community house in Phase 1 of the Development.
ABILITY TO MEET NEEDSThe sweat equity programs described above, provide avenues to affordable home ownership for low and very low income families. The development will also provide market rate options that are affordable to moderate income families who are not eligible for subsidies. The decision to include 21 homes in phase 1 is based on the need for both affordable and market rate homes in the region, as well as TVCDC goals to encourage a community with diverse incomes to coexist in every phase and every housing circle (seven homes in each circle). This approach also creates a more consistent, stable and equitable infrastructure for all three housing circles to be built at one time.
HOUSING PRODUCTSThe housing products planned for Phase 1 are 21 detached single family homes each on an average lot size of 1/8 acre. There will be options designed for 2-bedroom, and 3-bedroom homes for those families that are eligible for subsidies to select. The market rate homes can be designed
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
13
to accommodate 4-bedrooms. Each home will have two paved parking spaces at the back of the home, opportunity to fence a yard if desired, and the front of each home will face a common green space shared by all seven homes in a circle.
The homes will be solar powered with battery backup, and each housing circle will utilize a cluster septic system managed by TVCDC on behalf of the residents for consistent and reliable operation and maintenance. TVCDC will create a homeowner’s association and covenants to provide common understanding and accountability for property maintenance.
THIRD PARTIES ROLES AND TRANSITIONThe construction funds for these homes will come from the South Dakota Housing Opportunity Fund (SDHOF) administered by the South Dakota Housing Development Authority in the form of a $387,000 no-interest 36-month loan program called the Opportunity Fund. Thunder Valley CDC maintains ownership and control while SDHDA will take the first mortgage position on the home site during construction. Construction funds will be paid back to SDHDA once permanent financing is obtained through one of the following lending products: 502 direct, 502 guaranteed, 184 guaranteed, VA lending product, conventional mortgage or long term financing through SDHDA.
MAINTENANCE AND UPKEEPOnce construction of the proposed Phase 1 Thunder Valley Community water, wastewater, storm drain and roadways are complete, property owners of the Thunder Valley Community will be
charged a fee of approximately $130/month to live within the planned community similar to a Home Owner’s Association fee. The fee will be used to operate and maintain the proposed systems as well as manage snow removal during the winter season.
Thunder Valley will complete a maintenance/operations agreement with OST Rural Water or a third party contractor to maintain the water supply system. OST Rural Water staff is certified and best equipped to maintain and monitor the proposed improvements. Since the site will be newly constructed there should be little to no water loss within the system. If the Bureau of Reclamation allows OST Rural Water to take over the potable water system for this development through the creation of a water utility district, then OST Rural Water will take on all associated operation and maintenance costs of water supply at that time.
14
TIMELINE FOR ALL CRITICAL STEPS WITHIN THE DEVELOPMENT PROCESS
Acquisition is not shown in the project schedule below, because all infrastructure improvements recommended will occur on land currently owned by Thunder Valley CDC.
1. PER Submittal, February 6, 20152. Anticipated PER approval, March 6, 20153. Begin detailed survey and geotechnical
analysis, week of March 94. Anticipated funding approval, April 3, 20165. Consultants to begin Construction Documents,
week of April 66. Permit set of drawings (50% set) issued with
the following applications, May 1, 2015 • Water Service, OST Rural Water• Wastewater discharge notice, EPA• Underground Injection Control permit,
EPA• Stormwater discharge, EPA• Highway Access, OST Transportation
Department7. 100% set of Construction Documents, May 29,
20158. Once permits received, plat lots, and meet
with County Commissioner for approval (meets first Friday of month, June 5th)
9. Advertisement for bids, June 8, 201510. Loan closing, July 13, 201511. Contract award and notice to proceed, July 31,
201512. Initiation of construction, August 10, 2015
Order of work:• Site grading• Underground utilities• Fine grading• Stake roads• Curb and gutter• Gravel base• Road surfacing
13. Substantial completion, October 23, 201514. Final completion, November 6, 201515. Initiation of operation, November 9, 2015
See graphic schedule on page 15, Figure 4.
Home construction must be carefully coordinated within the infrastructure timeline. The sustainable construction workforce development program has outlined the following schedule for home construction in 2015.
1. Grading and compaction, July 27, 2015 - 1 week2. Form setting, slab and backfill - 2 weeks3. Wall and roof framing & sheathing - 2.5 weeks4. Exterior door and window installation - 1 week5. Exterior finish system - 1.5 weeks6. Interior framing and rough-in - 2 weeks7. Drywall and floor installation - 2 weeks8. Plumbing and electrical finish work - 1 week9. Interior doors, cabinetry, & carpentry - 2 weeks10. Exterior decks and clean up - 1 week
See graphic schedule on page 15, Figure 5.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
15
FIGURE 4 GRAPHIC PROJECT SCHEDULE
FIGURE 5 GRAPHIC HOME CONSTRUCTION SCHEDULE
2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15
PE
R S
ubm
itta
l
Anti
cipate
d P
ER
Appro
val
Anti
cipate
d F
un
din
g A
ppro
val
Per
mit
Applica
tion
s is
sued
w/
50
% s
et o
f dra
win
gs
Adver
tise
for
bid
s
Contr
act
aw
ard
, N
otic
e to
Pro
ceed
Init
iati
on
of
Con
stru
ctio
n
Su
bst
anti
al C
om
ple
tion
Fin
al C
om
ple
tion
an
d I
nti
ati
on
of
Oper
ati
on
, N
ovem
ber
9
Det
aile
d s
urv
ey a
nd
geo
tech
nic
al a
nal
ysis
Co
nsu
ltan
ts t
o b
egin
fin
al d
esig
n a
nd
Co
nst
ruct
ion
Do
cum
ents
• P
erm
its
or
no
tice
s n
eed
ed: 1
) W
ater
Ser
vice
; 2)
Was
tew
ater
dis
char
ge;
3)
Un
der
gro
un
d In
ject
ion
Co
ntr
ol 4
) S
torm
wat
er d
isch
arg
e; 5
) H
ighw
ay A
cces
s
• 10
0%
Co
nst
uct
ion
Do
cum
ents
• R
ecei
ve p
erm
its
• P
lat
lots
an
d m
eet
wit
h C
ou
nty
Co
mm
issi
on
fo
r ap
pro
val,
6.5
.15
• R
ecei
ve b
ids,
30
day
s af
ter
adve
rtis
emen
t•
Rev
iew
bid
s an
d s
elec
t co
ntr
acto
r(s)
, 45
day
s
• S
ite
gra
din
g, 2
wee
ks•
Un
der
gro
un
d u
tilit
ies,
3 w
eeks
• Fi
ne
gra
din
g, 1
wee
k•
Sta
ke r
oad
s•
Cu
rb a
nd
gu
tter
• G
rave
l bas
e•
Ro
ad s
urf
acin
g*
Co
ord
inat
e al
l wit
h h
om
e co
nst
ruct
ion
3 month Construction Period2 months forConstruction Documents
2 months forBid and SelectionProcess
2 months from submittal to funding approval
Gra
din
g a
nd C
om
pact
ion
Sla
b
Exte
rior
Wall a
nd R
oof
Fra
min
g
Exte
rior
Doors
an
d W
indow
in
stallati
on
Exte
rior
Cla
ddin
g -
Stu
cco
Inte
rior
Fra
min
g a
nd R
ou
gh
-in
Dry
wall
Flo
ori
ng in
stallati
on
Plu
mbin
g a
nd e
lect
rica
l fi
nis
h w
ork
Inte
rior
doors
, ca
bin
etry
an
d c
arp
entr
yE
xte
rior
dec
ks
2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15
2 months forExterior Work
6 weeks forInterior Work
16
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
17
Market Analysis
18
Current Population and Projection
The resident population residing within the jurisdiction of the Oglala Lakota Nation is approximately 30 thousand with thousands more enrolled members living off reservation homelands. Sixty-five percent of the population of the Oglala Lakota Nation is under the age of 25 years old.
Like most federal agencies, HUD requires accurate population data from the US Census Bureau to ensure adequate funding for needed housing programs. Unfortunately, Census population numbers for Pine Ridge fall far short of the probable reservation population. HUD recognizes this shortcoming by allowing tribes to challenge all of the data inputs into the IHBG formula, including the Census, and HUD’s formula data reflect a more enlightened and accurate reservation population count.
Where a population denominator is needed for calculations, the HUD formula number from the same year as that of the other source data in the calculations is used. This is used because it is the basis for HUD funding allocations, it comes closest to the independent estimates arrived at by the Colorado State research, and it strikes a balance between the cited extremes. See Table 1, page 19 for the count used by the The Oglala Sioux (Lakota) Housing Authority in the 2013 Case Statement. (For the full Case Statement see attachment 5)
Paul Iron Cloud, Chief Executive Officer of The Oglala Sioux (Lakota) Housing Authority, testified on the poor quality of reservation Census data before the Committee on Indian Affairs:“I would be remiss if I did not also mention that if a GPS and GIS needs assessment requirement was to replace the current defective U.S. Census method in the NAHASDA [Native American Housing Assistance and Self Determination Act] program, tribes, Congress, OMB and HUD would also then have an accurate, reliable and efficient way to better manage federal funding.”
The following is an excerpt from the Regional Equity and Opportunity Assessment prepared by The Kirwan Institute for the Study of Race and Ethnicity at The Ohio State University, and Policy Link. (see attachment 2 for full report)
While Oglala Lakota participants in multiple surveys and planning exercises identify housing as one of the most urgent needs for a young and growing population, data related to Pine Ridge population and housing needs are difficult to come by, whether the source is on the reservation or off. Even the question, “how many Native American people reside on Pine Ridge?” has multiple answers, depending on the source of the estimate. Data on businesses operating on the reservation are equally difficult to come by. Not having reliable population and business figures contributes to the challenges facing the community. It is clear that the population is growing on Pine Ridge, with conservative Census estimates documenting a 21% increase in population between 2000 and 2010. In comparison, the State of South Dakota experienced population growth of 7.8% between 2000 and 2010. The growth of population on Pine Ridge (and other tribal lands) also sets the area apart from the State of South Dakota, which has an aging population and is not growing as quickly. Because of the paucity of standard housing and economic data available for Pine Ridge, researchers have attempted to gather data from multiple sources to cross-corroborate findings, including data from a proprietary source (ESRI) and findings from several studies of Pine Ridge, primarily from Colorado State University professor Dr. Kathleen Pickering’s work. Because federal allocations are based on population, knowing the number of residents on the reservation is a crucial piece of information for nearly all else that happens on Pine Ridge.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
19
Recommendations to support accurate population data: • Support the recommendation in the Oglala
Lakota Regional Plan for Sustainable Development for the creation of a regional or tribal planning authority that acts as a one-stop shop for data on the Pine Ridge Indian Reservation. This entity would collect and evaluate data on an on-going basis.
• HUD should advance its work with the tribal housing authority to establish an accurate
assessment of the Pine Ridge population and housing needs, and push other federal agencies to adopt the locally sourced numbers for use in funding allocations.
• HUD can advocate for more accurate data collection methodologies on reservations, including Pine Ridge, by leveraging the Congressional mandate behind the national assessment of Native American tribes to keep the need for accurate data before Congress and other federal agencies, particularly the Census Bureau.
1 Population 32,8922 Poverty Rate 53.50%3 Poverty Rate (Children Under 17 Years of Age) 51.50%4 Per Capita Income $7,8875 Median Household Income $26,8006 Unemployment Rate (Want to Work) 40%7 High School Graduation Rate 54%8 #18-24 Year-olds without High School Diploma 1,2249 Incidence of Homelessness 1,439/5%10 Affordable Housing Shortage (for low income families) 2,588 units
TABLE 1 PINE RIDGE INDIAN RESERVATION QUICKFACTS FROM
Sources:1. Department of Housing and Urban Development, NAHASDA Formula, 20132. US Census 2010 http://quickfacts.census.gov/qfd/states/46/46113.html3. USDA www.ers.usda.gov/data/povertyrates/. 4. U.S. Census 2010. www.factfinder.census.gov.5. HUD 2013 Median Family Income Tables6. Pickering, 2005.7. Calculated from Bureau of Indian Education (BIE) Annual Report Cards 04-05 to 08-09 from Crazy Horse, Pine Ridge and Little Wound High Schools8. Calculated using BIE completion rates and population in age group9. OS(L)H Indian Housing Plan 2010. 313 families x 4.07 average family size 10. HUD NAHASDA Formula 2015
20
Proposed Site
The legal description of the property is Parcel 1: Lot 1, being a portion of Tract A of the SW1/4 and SE1/4 of Section 34, T.40N, R.43W, 6th P.M., Shannon County, South Dakota and Parcel 2: Lot 2, being a portion of Tract A of the SW1/4 and SE1/4 of Section 34, T.40N, R.43W, 6th P.M., Shannon Country, South Dakota.
The site is bounded on the east by Bureau of Indian Affairs (BIA) Highway 27, to the south, north and west by agricultural pasture land. Additionally, an unnamed tributary to Porcupine Creek is adjacent to the site along the southern boundary. The northern portion of the site drains northeasterly while the southern portion drains southeasterly into the Porcupine Creek tributary, while site elevations range from 2940 along the west boundary to 2885 near the northeast corner. Today the site features a temporary modular office for the Thunder Valley Community Development, community garden, tool shed, and Native American Sustainable Housing Initiative (NASHI) prototype home.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
21
FIGURE 6 LOCAL CONTEXT MAP
22
Proposed Project
The Phase 1 project includes potable water supply, wastewater treatment, roads, electrical, and stormwater conveyance for a Bunkhouse, a Community Building, a Workforce Center, two Greenhouses, and 21 single family homes comprised of:• (15) 3-bedroom• (6) 4-bedroom
BREAKDOWN OF FUNDING MECHANISMS• 60% Self Help• 10% workforce• 30% market rateThe total cost per unit of the house is estimated at $140,000.00 if the house is built commercially. The estimated lot cost is $32,500.00, for a total cost of $172,500.00 per unit.
Thunder Valley CDC will be utilizing the self-help and workforce development programs in Phase 1 of the development. So the majority of the home-owners in Phase 1 of the development will be financed through the 502 direct lending product.
Thunder Valley CDC will be partnering with First National Bank out of Rapid City, South Dakota in our Federal Home Loan Bank (FHLB) Affordable Housing Program Application. First National Bank is a member Bank of the FHLB will be the sponsoring bank partner on the application. In our Federal Home Loan Bank Application we will request $30,000 of subsidy per unit for 14 units in Phase 1 of the Thunder Valley development. Thunder Valley CDC will achieve a conditional commitment from the Oglala Sioux Lakota Housing Authority of $5,000 per unit for 14 units in the development. The Oglala Sioux Lakota Housing Authority will write the 14 unit subsidy into their NAHASDA Annual Housing Plan for 2015 and 2016. Having Tribal, NAHASDA dollars into the project makes the project and Thunder Valley CDC eligible for the 10 extra points for Native American/Tribal Communities with the FHLB Affordable Housing Program (AHP). This would total for cash subsidy in Phase 1 for $35,000.00.
BREAK DOWN OF COST AND SUBSIDY $140,000.00 - House $32,500.00 - lot cost including estimated grant dollars from 306 and 1780 programs and a small amount of soft cost and construction interest.Total Cost: $172,500.00
• $30,000.00 – FHLB Affordable Housing Program Subsidy
• $5,000.00 - Oglala Sioux Lakota Housing Subsidy NAHASDA
• $21,000.00- Self-Help & Workforce Development Sweat Equity (15% of the commercial price of the house at $140,000.00)
• $5,000.00- Individual Development Account Matched Savings Program
• $2,500.00- South Dakota Housing Development Authority Subsidy
Total Subsidy per unit: $63,500.00Total cost per unit after subsidy: $109,000.00
On the following page 23, the first table shows estimated monthly mortgage payments for four programs including .5% property tax and .5% PMI.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
23
Other lending products and subsidies to consider:HUD SHOP Funds are 90% deferred loans of $15,000 if a family contributes to the sweat equity in their homes. If we applied the HUD SHOP Fund it would mean an additional $13,500.00 of sweat equity per unit in the development. Thunder Valley CDC is in the process of applying for SHOP Funds for the 14 unit Phase 1 of the Development through the Housing Assistance Council. This would lower the loan amount per unit from $109,000.00 to $95,500.00.
The table below shows the estimated monthly mortgage payments for four programs including .5% property tax and .5% PMI based on using SHOP Subsidy:
TABLE 2 ESTIMATED MONTHLY MORTGAGE PAYMENTS
TABLE 3 ESTIMATED MONTHLY MORTGAGE PAYMENTS INCLUDING SHOP SUBSIDY
The estimated monthly Homeowners’ Association Fee will be approximately $132.00 based on the O&M of the water, sewer and road infrastructure as well as trash pickup and snow removal. Thunder Valley CDC and the Homeowners’ Association will also submit an application to OST Rural Water requesting to transfer operation and maintenance of the water supply system to them. If this occurs, the Homeowners’ Association monthly fee will decrease from $132/month to $88/month.
Thunder Valley CDC will use revenue tied to the selling of the lots to service debt. Thunder Valley’s Phase 1 plan is to use 306© Grant dollars for Water & Sewer, 1780 Grant and Loan dollars for Stormwater, and Community Facilities Loan dollars for roads and sidewalks. Thunder Valley’s long-term strategy is that once there are 3 individuals registered to vote living in the development they will create a sanitary district for the financing of future Phases and remaining loan dollars will be rolled into the Sanitary District for long-term financing.
LOAN PROGRAMMONTHLY
MORTGAGE PAYMENT
HOMEOWNERS ASSOCIATION FEETOTAL
MONTHLY PAYMENT
502 Direct Loan $676 33 years at 3.625% interest rate $132
potential to subsidize interest rate to 1% * see note below
502 Direct Loan $64538 Years at 3.625% interest rate $132
potential to subsidize interest rate to 1% * see note below
502 Guranteed Loan $132 $724
30 Years at 4% interest rate * see note below*or $680, see note below
184 HUD Guarantee $132 $709
30 years at 3.75% interest * see note below*or $665, see note
below* Thunder Valley and the Homeowners Association will submit an application to OST Rural Water requesting to transfer operation and maintenance of the water supply system to them. If this occurs, the Homeowners Association monthly fee will decrease to $88.
$592
$577
* or $632, see note below
* or $601, see note below
$544
$513
LOAN PROGRAMMONTHLY
MORTGAGE PAYMENT
HOMEOWNERS ASSOCIATION FEETOTAL
MONTHLY PAYMENT
502 Direct Loan $618 33 years at 3.625% interest rate $132
potential to subsidize interest rate to 1% * see note below502 Direct Loan $590
38 Years at 3.625% interest rate $132potential to subsidize interest rate to 1% * see note below
502 Guranteed Loan $132 $660
30 Years at 4% interest rate * see note below*or $616, see note
below184 HUD Guarantee $132 $646
30 years at 3.75% interest * see note below*or $602, see note below
$514
* Thunder Valley and the Homeowners Association will submit an application to OST Rural Water requesting to transfer operation and maintenance of the water supply system to them. If this occurs, the Homeowners Association monthly fee will decrease to $88.
$486 * or $574, see note below
$458 * or $546, see note below
$528
24
Existing Community ServicesThunder Valley Regenerative Development is on Highway 27 just north of the intersection with Highway 2, known as Sharp’s Corner. With the Common Cents grocery store and gas station located at the corner and the route to Rapid City directly north on Highway 27, this is one of the most highly travelled intersections on the Pine Ridge Indian Reservation.
Figure 7 on page 25 shows the existing community services within a 15 mile radius of Thunder Valley Development. Included are:
• (3) Elementary Schools• Preschool• Oglala Lakota College campus and Student
Services Center• Dialysis clinic• General Health Clinic• Motel• Post Office• Quick Mart and Gas Station
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
25
FIGURE 7 MAP OF EXISTING COMMUNITY SERVICES NEARBY
Rockyford Elementary School
Thunder Valley CDC
Common Cents
Black Hills Dialysis Center
Singing Horse B&B
Lakota Prairie Ranch Resort
Oglala Lakota College
Porcupine Head Start
Our Lady of Lourdes ElementaryPahin Sinte Oglala Lakota College CenterPorcupine Elementary School
Porcupine ClinicPost Office
26
Existing Housing Market
In July of 2013, the OSL Housing Authority estimated a housing shortage for low-income families alone of approximately 2500 new homes. All sources point to a demonstrated, significant need for additional housing units at every income level, including the replacement or renovation of current stock.
Above and the following is an excerpt from the Regional Equity and Opportunity Assessment prepared by The Kirwan Institute for the Study of Race and Ethnicity at The Ohio State University, and Policy Link. (see attachment 2 for full report)
Not only are there too few units, much of the existing housing stock is substandard and in need of repair. Nearly 70% of all reservation housing is HUD housing or a trailer home. The median home value on the Reservation is $25,900—barely more than one-fifth the US average of $119,600 —the depressed values are due to the substandard quality of the housing stock and a lack of a widely accessible housing finance system for tribal land holdings. An EPA report on black mold in Pine Ridge housing states that mold has been found in 75% of tribal housing units, resulting in substantial health risks. Currently, the Housing Authority has inadequate inspection capacity; and while current housing resources are directed at mold remediation, the level of resources is insufficient to address the scale of mold issues found. An additional challenge is the lack of places to house residents as renovations of their homes are taking place.
Reservation housing choice is currently very limited, due in part to the need to maintain existing stock and provide base-level shelter in the face of capacity shortages. And while current subsidies are directed at addressing the needs of low-income households, the reservation also lacks housing that would appeal to young Native American professionals (trained on or
off the reservation) who would like to live on the reservation, but cannot. HUD and USDA are currently exploring ways to expand other housing assistance and development programs to Pine Ridge, such as the Section 502 Housing Loan Guarantee program that serves households earning up to 115% of median income, that can serve a broader spectrum of tribal members’ housing needs, and that can leverage more private resources into housing development.
END OF EXCERPT
The Oglala Sioux (Lakota) Housing Authority Case Statement prepared in 2013 (See attachment 5 for full report) reports that there are currently two multifamily housing buildings on Pine Ridge Indian Reservation. Cherry Hill Elderly apartments which are 4-plex apartments, and the USDA OSLA elderly apartment complex which is comprised of five buildings with 15 apartments each located in Porcupine.
See Table 2, page 27 for the waiting list by district for subsidized housing.
See Table 3, page 27 for a general description of the current state of need, conditions of existing housing, and shortage.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
27
District Low RentHome
Ownership TotalCherry Hill 28 0 28Cohen Home 3 0 3Eagle Nest 14 4 18Lacreek 19 6 25Medicine Root 25 (Kyle 23/Potato Creek 2) 18 43Pass Creek 11 7 18Porcupine 24 (Porcupine 18/Sharp’s Corner 6) 13 37Pine Ridge 108 34 142Wakpamni/Batesland 66 36 97White Clay 41 (Oglala 36/Red Shirt 5) 19 60Wounded Knee 42 (WK 24/Manderson 18) 8 50
Totals 376 145 521
Total Resident Service Area Population 43,146
After adjustments based on IHS population projections, the sharing of Needs data among tribes in cases of overlapping Formula Areas and application of the Population Cap (see note below), your Tribe's Needs component is based on multi-race data. The Needs data are AIAN persons
34,641
AIAN households with annual income less than 30% of median income:
1,905
AIAN households with annual income between 30% and 50% of median income:
1,253
AIAN households with annual income between 50% and 80% of median income:
806
AIAN households which are overcrowded or without kitchen or plumbing:
2,797
AIAN households with housing cost burden greater than 50% of annual income:
631
Housing Shortage (number of low-income AIAN households less total number of NAHASDA and Current Assisted Stock):
2,588
We must caution that the need is greater than our waiting list but many people fail to do the annual recertification since they know there are not many houses available.
TABLE 4 OGLALA SIOUX (LAKOTA) HOUSING INCOME ELIGIBLE WAITING LIST
TABLE 5 RENTER AND OWNER OCCUPIED HOUSEHOLDS, CONDITIONS AND DEMAND, HUD NAHASDA FORMULA DOCUMENT
28
The Oglala Sioux (Lakota) Housing Authority Case Statement includes an inspection report from March 2013.
Total # Standard Rehab Replace InspectedRental 1100 950 100 10 936Homeownership 121 121 0 0 25Other 14
Good Repair ReplaceGrounds 191 350 97Foundation 382 210 28Heat 385 146 104Plumbing 248 328 59Bathroom 82 349 204Floors 94 387 55Drywall 102 500 25Interior Paint 175 244 217Exterior Paint 323 207 103Range 452 93 61Water Heater 537 46 33Roof/Gutters 126 283 229Siding 270 268 100Fridge 531 51 30Electrical 228 226 188Windows 103 308 228Doors 123 247 267
TABLE 6 INSPECTION REPORT
The Oglala Sioux (Lakota) Housing Authority Case Statement shows the federal subsidy utilization and availability of subsidized units in the following table.
TABLE 7 SUBSIDY UTILIZATION AND AVAILABILITY OF SUBSIDIZED UNITS
District Low Rent Mutual HelpPine Ridge 327 (23 CH) 76White Clay 123 50Wounded Knee (Manderson) 134 63Medicine Root 119 56Eagle Nest 97 52Lacreek 76 46Pass Creek 78 44Porcupine 127 68Wakpamni(Batesland) 79 90
1160/1158 ? 545Other Subsidies2013 Formula Mutual Help still on HUD 218Conveyed Mutual Help ?Homes Still Owed On ?Ellsworth 52 261937 Carryover 27ARRA 18
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
29
New Housing
NEW HOUSING PROJECTS UNDERWAYThe Oglala Sioux (Lakota) Housing Authority Case Statement shows the following log of projects and funding.
No multifamily projects
New low rent units:• 18 three bedroom houses under Rural
Innovation Fund targeted at 80% AMI. Completion 6/15
• 45 three bedroom houses with a Title VI Loan targeted at 80% AMI. Completion 6/16
• Plans for the future include (29) 3 bedroom low rent units, probably Governor’s Houses based on cost.
Current ProjectsHUD Indian Community Development Block Grant 11 ($1.1 million HUD/$366,667 OSLH)Renovate 190 units, 240 bathrooms, 120 basements, completed 3/14
Indian Community Development Block Grant 13 ($1.1 million HUD/$366,667 OSLH)Renovate 190 units, 136 bathrooms, 50 basements, 54 kitchens, Timeframe 10/13-9/14
Rural Innovation Fund ($2 million HUD/$1 million OSLH)Design energy efficient homes and build 18 low rent units.
Affordable Housing Program/Federal Home Loan Bank of DesMoines 11 ($450,000 HUD)Renovate 15 low rent units (5 vacant/10 elderly, completed 6/13
Affordable Housing Program/Federal Home Loan Bank of DesMoines 12 ($163,000 HUD)Renovate 7 Cherry Hill units (2 4-plexes) , Begin 7/13
Affordable Housing Program/Federal Home Loan Bank of DesMoines 13 ($480,000 HUD)Renovate 24 Cherry Hill units (6 4-plexes), Begin 3/14
Title VI Guaranteed LoanConstruct 27 low rent units in subdivisions. Submitted 11/13
USDA Rural Development/Water and Waste Program ($999,000)Renovate Wounded Knee Lagoon, Submitted 11/13
30
Employment Opportunities
Thunder Valley CDC is not only creating a new model of high quality affordable housing, but is also paving the way for new jobs and a skilled workforce. The Thunder Valley Workforce Development Through Sustainable Construction Program educates adults in Sustainable Home Construction through classroom training and hands-on training including building energy efficient single-family homes within the Thunder Valley Regenerative Community Development.
After completion of this program, participants may be placed in the local construction industry or continue with higher education goals. Participants may also opt to become part of a Thunder Valley employee-owned construction company - a unique opportunity to go from student to business owner in a short time.
The following is an excerpt from the Regional Equity and Opportunity Assessment prepared by The Kirwan Institute for the Study of Race and Ethnicity at The Ohio State University, and Policy Link. (see attachment 2 for full report)
In addition to meeting housing needs, home construction would also contribute to the overall local economy. The National Association of Home Builders reported in 2009 that “the estimated one-year local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other revenue for local governments, and 324 local jobs.”
An important facet of the reservation economy is unemployment. ACS estimates place the labor force participation rate on Pine Ridge at 49.4%. This low labor force participation rate should be understood in the context of the employment environment on the reservation. The combination of a lack of employment opportunities, a workforce that lacks the skills to do the best paying, skilled jobs on the reservation, and the large commutes to work (for jobs both on and off the reservation) effectively closes out many reservation residents from the local economy.
It should also be noted that a lack of wage labor does not mean a lack of economic activity. Individuals participate in an array of formal and informal economic activities including barter and exchange as well as subsistence hunting to benefit one’s own household and others in the community.
Businesses On and Off ReservationA major factor contributing to unemployment and long commutes for residents of the Reservation (in addition to the sheer vastness of the reservation itself) is the relative shortage of businesses and employers compared to the larger region. While the surrounding region has 37 businesses per 1,000 persons, the Reservation has 16 businesses per 1,000 persons.
These figures are also reflected in the number of jobs per 1,000 persons; while there are about 212 jobs per 1,000 persons on the Reservation, there are 368 jobs per 1,000 persons in the surrounding region. Lastly, the sales volume per capita of businesses is another telling aspect of the local economic conditions. The sales volume of businesses on the Reservation is about $13,200 per capita, while businesses in the surrounding region average over four times that -- around $56,400 in sales per capita. Table 6, on page 31 provides a summary of these key business variables.
The Purdue Center for Regional Development provided a recent assessment of the three fastest growing occupations in the larger economic region from 2007 to 2012: “Creative” (legal occupations), with 23% growth; “Creative” (arts, design, entertainment, sports & media) with
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
31
TAB
LE 8
C
OM
PAR
ATI
VE
EC
ON
OM
IC V
AR
IAB
LES
FOR
PIN
E R
IDG
E R
ESE
RVA
TIO
N A
ND
TH
E S
UR
RO
UN
DIN
G R
EG
ION
Bus
ines
ses
Avg
Sal
es
($th
ous
and
s)T
ota
l Sal
es
($th
ous
and
s)A
vg
Em
plo
yees
To
tal
Em
plo
yees
Po
pul
atio
nB
usin
esse
s/10
00
P
op
ulat
ion
Job
s/10
00
P
op
ulat
ion
Sal
es p
er c
apit
a ($
tho
usan
ds)
Pin
e R
idg
e R
eser
vati
on
44
9$
823
$
369
,74
3 13
5,9
3428
,00
016
.021
1.913
.2S
uro
und
ing
Reg
ion
14,0
77$
1,523
$
21,4
33,9
70
1013
9,8
87
380
,145
37.0
368
.056
.4R
egio
nal T
ota
ls14
,526
$1,5
01
$21
,80
3,71
3 10
145,
821
40
8,14
535
.635
7.3
53.4
14% growth; and “Working” (Construction and Extraction Occupations) with 13% growth. In addition, the Purdue analysis found that there are high-volume industries where there is “leakage” outside the three-county area comprising Pine Ridge that the reservation could work to build, expand or retain, including business & finance, IT & telecommunications, energy, biomedical/biotechnical, and manufacturing. Table 7, page 32 is a reproduction of the Purdue study table.
It is informative to compare the industry makeup of business and employment on the Reservation and in the surrounding region. The largest employers on the Reservation are in public and institutional sectors such as education, government, and healthcare. The Prairie Winds Casino is also a large employer on the Reservation. The economy of the surrounding region is comparatively more diverse, having a variety of large employers in manufacturing, telecommunications, retail, food services, government, health care, and hospitality and accommodations. Table 8, page 33 provides a comparison of the five largest employing industries, in terms of average and total employment, for the Reservation compared with the largest employers in the surrounding Region.
A comparison of sales revenue of businesses on the Reservation with businesses in the surrounding region identifies the strongest industries in both areas (Table 9, page 33). Knowing which businesses are strong on the Reservation may point to competitive advantages that can be leveraged. High-performing industries in the surrounding area could suggest businesses to attract, if resources and demand are also present and the reservation business and regulatory environment could be made favorable to these businesses.
Wholesale industries in livestock, trade agents and brokers, and petroleum represent some of the strongest performing businesses on the Reservation. These industries are also strong in the surrounding region, as are additional industries such as manufacturing, automobile dealers and wholesalers, electric power distribution and retail department stores, some of which might also be viable on the reservation.
32 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
Business & FinanceIT & Telecommunications
Energy (Fossil & Renewable)**Biomed/Biotechnical
Manufacuring SuperclusterAdvanced MaterialsDefense & Security
Agribusiness & Food ProcessingTransportation and Logistics
Arts. Entertainment & Visitor IndustriesChemical & Chemical-based industry
Transportation EquipmentEducation & Knowledge Creation
Computer & Electric ProductPrinting & Publishing
Machinery ManufacturingForestry & Wood Products
MiningFabricated Metal
Apparel & TextilesElectrical Equipment
Primary MetalGlass & Ceramics Satisfied in Region Satisfied outside Region
TABLE 9 THREE COUNTY INDUSTRY CLUSTERS, EXPENDITURES AND LEAKAGES, 2011
Reservation Dollars Follow OpportunityAccording to a recent survey of reservation shopping patterns, reservation dollars in large measure mirror the commute to Rapid City for work, retail and entertainment. Huge amounts of income are spent off the reservation, primarily in Rapid City but also in smaller communities south of Pine Ridge (e.g. at the WalMart in Chadron, NE). About two-thirds of spending for groceries and household goods is off-reservation. Reservation residents desire a full consumer experience of the sort available in Rapid City that includes not only shopping but also dining and entertainment (the primary reason some go to the casino is for dining and to socialize with friends), suggesting that the reservation could support these activities. Those surveyed also said they would pay higher prices to shop on the reservation for comparable quality goods if doing so would create jobs, particularly for young people.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
33
TABLE 9 THREE COUNTY INDUSTRY CLUSTERS, EXPENDITURES AND LEAKAGES, 2011
TAB
LE 1
0
RE
SER
VATI
ON
EM
PLO
YM
EN
T SE
CTO
RS
IN R
ELA
TIO
N T
O R
EG
ION
AL
SEC
TOR
S
Ave
rag
eE
mp
loye
esA
vera
ge
Em
plo
yees
Oth
er G
amb
ling
Ind
ustr
ies
200
Bar
e P
rint
ed C
ircu
it B
oar
d M
anuf
actu
ring
60
0G
ener
al M
edic
al a
nd S
urg
ical
Ho
spit
als
117
Rub
ber
and
Pla
stic
s H
ose
s an
d B
elti
ng M
ater
ial
330
Ele
men
tary
and
Sec
ond
ary
Sch
oo
ls6
1T
elem
arke
ting
Bur
eaus
and
Oth
er C
ont
act
Cen
ters
168
Co
lleg
es, U
nive
rsit
ies,
and
Pro
fess
iona
l Sch
oo
ls4
9W
areh
ous
e C
lub
s an
d S
uper
cent
ers
163
Live
sto
ck M
erch
ant
Who
lesa
lers
40
All
Oth
er M
isce
llane
ous
Am
bul
ato
ry H
ealt
h C
are
Ser
vice
s11
9T
ota
lE
mp
loye
esT
ota
lE
mp
loye
esE
lem
enta
ry a
nd S
eco
ndar
y S
cho
ols
1,70
0E
lem
enta
ry a
nd S
eco
ndar
y S
cho
ols
10,9
58O
ther
Gen
eral
Go
vern
men
t S
upp
ort
1,478
Acc
om
mo
dat
ion
and
Fo
od
Ser
vice
s8
,416
Co
lleg
es, U
nive
rsit
ies,
and
Pro
fess
iona
l Sch
oo
ls39
5N
atio
nal S
ecur
ity
5,0
51G
ener
al M
edic
al a
nd S
urg
ical
Ho
spit
als
351
Leg
isla
tive
Bo
die
s4
,94
6O
ther
Gam
blin
g In
dus
trie
s20
0H
ote
ls (
exce
pt
Cas
ino
Ho
tels
) an
d M
ote
ls4
,223
Res
erva
tio
n E
mp
loym
ent
Reg
iona
l Em
plo
ymen
t
Ave
rag
e$
Tho
usan
ds
Ave
rag
e$
Tho
usan
ds
Live
sto
ck M
erch
ant
Who
lesa
lers
55,0
40
Bar
e P
rint
ed C
ircu
it B
oar
d M
anuf
actu
ring
119
,40
0O
ther
Gam
blin
g In
dus
trie
s19
,20
0G
rain
and
Fie
ld B
ean
Mer
chan
t W
hole
sale
rs11
4,10
3W
hole
sale
Tra
de
Ag
ents
and
Bro
kers
17,0
55R
ubb
er a
nd P
last
ics
Ho
ses
and
Bel
ting
Mat
eria
l8
6,7
90
Pet
role
um a
nd P
etro
leum
Pro
duc
ts M
erch
ant
Who
lesa
lers
17,0
42
Mea
t an
d M
eat
Pro
duc
t M
erch
ant
Who
lesa
lers
68
,738
Pip
elin
e T
rans
po
rtat
ion
of
Cru
de
Oil
13,5
15A
uto
mo
bile
and
Oth
er M
oto
r V
ehic
le M
erch
ant
Who
lesa
lers
31,4
50T
ota
l$
Tho
usan
ds
To
tal
$ T
hous
and
sLi
vest
ock
Mer
chan
t W
hole
sale
rs55
,04
0P
etro
leum
and
Pet
role
um P
rod
ucts
Mer
chan
t W
hole
sale
rs1,2
61,0
71O
ther
Gas
olin
e S
tati
ons
38,5
12N
ew C
ar D
eale
rs9
22,9
77G
ener
al M
edic
al a
nd S
urg
ical
Ho
spit
als
37,2
06
Live
sto
ck M
erch
ant
Who
lesa
lers
704
,512
Pet
role
um a
nd P
etro
leum
Pro
duc
ts M
erch
ant
Who
lesa
lers
34,0
83
Ele
ctri
c P
ow
er D
istr
ibut
ion
555,
659
Oth
er G
amb
ling
Ind
ustr
ies
19,2
00
Dep
artm
ent
Sto
res
(exc
ept
Dis
coun
t D
epar
tmen
t S
tore
s)51
9,6
96
Res
erva
tio
n S
ales
Reg
iona
l Sal
es
TAB
LE 1
1 R
ESE
RVA
TIO
N S
ALE
S IN
RE
LATI
ON
TO
RE
GIO
NA
L SA
LES
34
Interviews and Engagement
The community impacted by this development is defined as the Pine Ridge Indian Reservation. Thunder Valley CDC has been working with the Oglala Sioux (Lakota) Housing Authority, HUD, USDA, reservation-based nonprofits such as Mazaska, and Oglala Sioux Tribe Partnership 4 Housing to develop an appropriate housing plan to respond to the needs of this regional community, including factors such as affordability, programs to prepare individuals to be mortgage-ready and financially literate, and the design of highly efficient, quality structures that are appropriately sized for many different family types.
During the years of 2010, 2011 and 2012, Thunder Valley CDC conducted a Regional Planning Process for the Pine Ridge Indian Reservation – The Oglala Lakota Plan | Oyate Omniciye’. Thunder Valley CDC facilitated many community conversations which included input from children to elders, elected officials, community leaders and those vested in building healthier and more sustainable tribal communities. This collaboration of committed citizens, organizations, tribal and outside agencies took an in-depth look at existing systems affecting the everyday lives of those living on the Pine Ridge Indian Reservation. Gathering information, creating outreach, and facilitating discussions about the future created the momentum to have an honest and collective conversation about the challenges our tribal communities face.
In October of 2012, the Oglala Sioux Tribe adopted into law, Oyate Omniciye Oglala Lakota Plan as the official Regional Sustainable Development Plan of the Oglala Sioux Tribe, and one of the primary initiatives of the plan is the creation of Model Communities.
Parallel to the regional planning process, Thunder Valley CDC has been moving forward on their Model Community plan. Specific visioning and
listening meetings were held with those in the geographic vicinity of Thunder Valley about the development of a community that nurtures positive change through connection to native identity and culture. This group of interested community members and potential partners has come together on four occasions in 2013 and 2014 to work on the planning, design, sustainability measurements, and engineering solutions for this Model Community.
In their recent Case Statement, the Oglala Sioux (Lakota) Housing Authority included a survey they administered in the summer of 2007 to Low Rent Tenants. The survey received responses from 435 tenants in the following districts:• Wounded Knee (69)• Porcupine (19)• Eagle Nest (70) • Medicine Root (85)• White Clay (15)• Wakpamni (53) • Pine Ridge (39)• Lacreek (69)• Pass Creek (16)
Of the questions that received a high percentage of favorable responses, the following are of particular focus for the Thunder Valley Housing Plan. (See Table 6, page 33)
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
35
1 I would like to buy/take ownership of my unit. 68%2 If I owned my house I would maintain/repair it. 79%12 I would like to buy a home. 69%13 I have the resources to buy a home. 41%21 The roads in our cluster need fixing. 73%22 I would like to see the following in our cluster:
Playgrounds, picnic areas, trees, lawns 88%26 There is a need for more elderly apartments. 57%27 My house is handicapped accessible. 26%28 I would attend workshops/classes by TSRs on:
Dealing with mold 78%Basic home repair 79%Personal finance 77%Homebuyer counseling 69%
TABLE 12 SURVEY EXCERPT FROM LOW RENT TENANTS, 2007
36
Conclusions
Given the continuing trend of increasing population, the aging and underperforming existing housing stock, and the growing deficit of housing units on the Reservation, additional housing development that meets the regional threshold for affordability is a feasible investment.
While, single family homes are the commonly accepted typology for home ownership, other types of housing such as townhomes and live/work lofts over retail establishments have been surveyed and found to be acceptable alternatives for young families, artists, and small business owners.
This development seeks to change the status quo of housing on the reservation with equitable home ownership opportunities, a higher quality built environment than other housing developments, and mixed uses to stimulate economic development. Acceptance and adaptation to new norms may be challenging, however the community engagement process and educational programs that Thunder Valley manages paves the way for success of this new type of development.
The primary negative attribute of the market is the lack of comparable development thereby requiring that cost-to-build appraising method is used and no market is assumed. However, through the sizeable subsidies available to eligible homeowners, they will still have early equity in their homes. And given that there are unmet housing needs for those employed in the region, the development of Phase 1 housing will provide comparables for other future housing development to occur in the near term.
This development aspires to raise the bar on healthy infrastructure and quality homes for existing housing projects as well as spur additional development to provide homes and close the gap on housing need.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
37
38
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
39
Feasibility
40
Business Strategy and Implementation
MARKET STRATEGYThe primary market strategy is to provide affordable homeownership opportunities to low and very low income Lakota families. 70% of the 21 homes in Phase 1 will use subsidies to achieve this levels of affordability. 30% of the homes will be market rate and commercially built. Each of the three circles of housing will have a mix of incomes.
The market analysis shows that there is a lack of all types and affordability levels of housing on Pine Ridge Indian Reservation, and a latent demand that has been unmet and therefore has diminished through continuous lack of availability.
GROWTH STRATEGYIn 2015, an additional market study and schematic design for townhomes and mixed use building in the large southern circle is scheduled to be accomplished to prepare for a Low Income Housing Tax Credit application and a New Market Tax Credit application, both of which will be submitted in 2016. The status of these applications and subsequent financing will to determine number of first multifamily housing units and mixed use buildings that may be built during the 2017-2018 contract period of these Tax Credit awards. It is expected that Phase 2 will build approximately 90 units of multifamily housing, a Grocery store, and approximately 60,000 square feet of mixed use commercial and live|work space, including the new Thunder Valley workforce training center, offices, daycare, and fitness center.
In addition, Phase 2 will also build a Community Building, (11) single family homes, and a Youth Shelter following the financing model established during Phase 1.
SALES STRATEGYThunder Valley CDC uses a multi-pronged outreach and education campaign to let Lakota families know about upcoming homeownership opportunities including:• Weekly ads in newspaper • Biweekly radio show appearance• Monthly newsletters• Daily updates in social media• Word of mouth from local program and Board
involvement• Weekly meetings with Anchor Institutions on
Reservation for intake of eligible or interested families (IHS, Schools, College, BIA, Tribe – intakes at those meetings)
The Home Ownership Coordinator (full time position, staffed by Star Means) utilizes the Home Keeper module on Sales Force software (contact management system for customer sales) to maintain the database of eligible and interested families. There are currently 50 people in this database.
INTERNAL VS INDEPENDENT DEVELOPMENTThe Developer will be responsible for the method of development. After, the minimum number of voting residents are living in the development Thunder Valley CDC will explore the creation of a sanitary district with taxing authority. Community members will be part of that decision along with Homeowner’s Association Board, comprised of CDC leadership plus family votes. Once the community is larger than nine families, representation will be elected for families.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
41
METHODS FOR SERVICE/MAINTENANCEHomeowners will pay a monthly HOA fee for infrastructure operation and maintenance. Based on cost estimates in the Preliminary Engineering Report this monthly fee will be approximately $132. Also property tax will be escrowed into mortgage.
COMPENSATION BASIC AND LEVELSDeveloper fees equal 3% of home and lot, and is not paid for by any subsidy. This fee is included in closing cost of house.
42
Feasibility Analysis
PROFORMAThe following proforma balances all of the sources and costs, whether they are subsidies that go directly to new homeowners or grants, loans and payments that go to Thunder Valley CDC to offset pre-development costs, development soft costs, construction materials, or infrastructure. Though atypical, this proforma tells the story of creating affordable homeownership options, with as little profit to the development entity as is sustainable. (Excel spreadsheet of the components shown on pages 42 - 45 will be included as an attachment)
With projected cash flow upon year three sales, a lending institution should be able to offer a line of credit (LOC), perhaps pledged by the land, that would be in lieu of the $190,000 soft loan shown as TBD that is needed for construction funding in year one.
SOURCESPurpose Grants Status AmountPre-D Enterprise Community Partners Committed $75,000Pre-D Northwest Area Foundation Committed $15,000Pre-D Surdna Foundation Committed $25,000Pre-D Buckminster Fuller Institute Committed $10,000Land HUD Committed $10,200Pre-D Enterprise Community Partners, HUD 4 (year 1) Pending $100,000Pre-D Enterprise Community Partners, HUD 4 (year 2) Pending $100,000Pre-D Enterprise Community Partners, HUD 4 (year 3) Pending $100,000TBD Grant TBD (or LOC) for Pre Dev reduction (Year 1) TBD $80,000TBD Grant TBD (or LOC) for SC reduction (Year 1) TBD $80,000TBD Grant TBD (or LOC) for Int reduction (Year 1) TBD $30,000Infrastr USDA RD 306C (Water and Waste) Pending $576,165Infrastr USDA RD 1780 (45% of Stormwater) Pending $209,773
$1,411,138Mortgage Subsidy & Loan Programs
Subsidy Federal Home Loan Bank, AHP ($30K ea for 14 houses) Pending $420,000
Subsidy OSL Housing Authority ($5K ea for 14 houses) Pending $70,000Subsidy SD Housing Pending $35,000
Subsidy IDA Pending $70,000Program 184 Loan Monies year 1 Committed $140,000Program 184 Loan Monies year 2 Committed $140,000Program 502 Loan Monies year 1 Committed $840,000Program 502 Loan Monies year 2 Committed $840,000
$2,555,000Workforce and Self Help Offset - GrantWorkforce Labor - 3 Houses ($21,000 each) Committed 3 $21,000 $63,000Self Help Labor - 12 Houses ($21,000 each) Committed 12 $21,000 $252,000
$315,000SHOPHUD SHOP - 12 Houses ($13,500 each) Committed 12 $13,500 $162,000
$162,000
LoanSD Housing Opp Fund (Draw down of $345K Total Year 1) Committed 0.00% 36 $345,000 $345,000SD Housing Opp Fund (Remaining draw of $345K Year 2) Committed 0.00% 36 $0SD Housing Opp Fund (Remaining draw of $345K Year 3) Committed 0.00% 37 $0Minnesota Housing Partnership (Draw down year 1) Pending 5% 36 $0 $0Minnesota Housing Partnership (Draw down year 2) Pending 5% 36 $0Minnesota Housing Partnership (Draw down year 3) Pending 5% 36 $0USDA RD Community Fac (Road & Elec: Max $488,661) Pending 3.75% 240 $62,000 $62,000USDA RD 1780 (55% of Stormwater) Pending 3.00% 480 $256,389 $256,389Housing Assistance Council (drawdown of $750K year 1) Pending 7% 36 $0 $0Housing Assistance Council (drawdown of $750K year 2) Pending 7% 36 $0Housing Assistance Council (remain drawdown year 3) Pending 7% 36 $0
Conventional Construction Loan (drawdown year 2) Pending 7% 36 $0 $0Conventional Construction Loan (remain drawdown year 3) Pending 7% 36 $0
$663,389 $663,389
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
43
SALESPre Sales $s Sale Funds HOA Fees Post Sales Funds
Available funds prior to sale $2,074,527 $1,725,050 $87,120 $3,886,697Available funds year 1 OK $1,874,527 $356,328 $17,424 $2,248,279Available funds year 2 $100,000 $571,541 $21,120 $692,661
Available funds year 3 $100,000 $377,180 $24,288 $501,469Available funds year 4 $0 $420,000 $24,288 $444,288
6 OK 1 2 12
House Cost Market Rate MR w/ WF Sub w/ WF only Sub w/ SE & SHInfrastructure cost per lot $32,393 FOSI Subs $42,500 $42,500Soft Cost (not pre-dev) $171 SelfHelp $21,000Const Interest Cost $2 SHOP $13,500Home construction cost $140,000 Workforce $21,000 $21,000
Total $21,000 $63,500 $77,000Total Cost per Home $172,567 $151,567 $109,067 $95,567
Extra Lot Development Cost to Pay for Stormwater Debt $0 $0 $256,389Extra Charge per house to pay long term debt $0.00 23
Year # Units Lot Pymt Yr Lot Pmt Bldg Pmt Yr Sale Funds Total Pmts1 6 Yr 1 502 (Owner as House Investor w/ SelfHelp et al) $194,361 1 $0 0 $194,3611 1 Yr 1 184 (Owner as House Investor w/ WF Only ) $32,393 1 $0 0 $32,3932 6 Yr 2 502 (Owner as House Investor w/ SelfHelp et al) $194,361 2 $0 0 $194,3612 1 Yr 2 184 (Owner as House Investor w/ WF Only ) $32,393 2 $0 0 $32,3933 1 Yr 3 Mkt w/ WF (TV as Developer w/ Owner Subsidy) $32,393 3 $140,000 4 $172,3931 2 Yr 1 Mkt (TV as Developer) $64,787 1 $280,000 2 $344,7872 2 Yr 2 Mkt (TV as Developer) $64,787 2 $280,000 3 $344,7873 2 Yr 3 Mkt (TV as Developer) $64,787 3 $280,000 4 $344,787
211 2 Yr 1 TV Lots $64,787 1 $0 0 $64,787
23 Totals $745,050 $980,000 $1,725,050
HOA FEESYear 1 Year 2-4* (*If water removed after year 1)
Monthly O&M Fee per lot (23 lots) $122 $78Monthly snow and trash removal fee per lot $10 $10Total Monthly Fee $132 $88Total Annual Fee $1,584 $1,056
Comp New11 11 Year 1 Built $17,424 $17,424
20 9 Year 2 Built $31,680 $21,12023 3 Year 3 Built $36,432 $24,28823 0 Year 4 Built - Stabilized $36,432 $24,288
23 3-Year Total $85,536 $62,832OK OK
TOTAL INCOME (SALES AND FEES)Year 1 $373,752Year 2 $592,661Year 3 $401,468Year 4 $444,288
$1,812,170
SUM OF FUNDING AND INCOME FOR DEVELOPMENT AND SALESYear 1 $2,248,279Year 2 $692,661Year 3 $501,469Year 4 $444,288
$3,886,697
$0$32,393$32,393 $140,000
Year Type House # bldgs Full TV Resp Lot Pmt House Pmt1 Yr 1 502 (Owner as House Investor w/ SelfHelp et al) 6 No $194,361 01 Yr 1 184 (Owner as House Investor w/ WF Only ) 1 No $32,393 01 Yr 1 Mkt (TV as Developer) 2 Yes $64,787 $280,0002 Yr 2 502 (Owner as House Investor w/ SelfHelp et al) 6 No $194,361 02 Yr 2 184 (Owner as House Investor w/ WF Only ) 1 No $32,393 02 Yr 2 Mkt (TV as Developer) 2 Yes $64,787 $280,0003 Yr 3 Mkt w/ WF (TV as Developer w/ Owner Subsidy) 1 Primary $32,393 $140,0003 Yr 3 Mkt (TV as Developer) 2 Yes $64,787 $280,0001 Yr 1 TV Lots 2 Yes $64,787 $0
23 $745,050 $980,000
# of Owners
44
USESPredevelopment Source Remainder Rem Per Unit
Environmental assessment $30,000 $308,000 $305,000 $3,000Pre Engineering Report $145,000 $0Master Planning $50,000 $0Surveying/Platting $21,000 $0Other $0 $0Architect $112,000 $0
$246,000 $3,000 $130Land
Land Cost $10,200 $10,200 $10,200 $0 $0
Infrastructure ConstructionWater $339,425 $576,165 $576,165 $0Wastewater $236,740 $0Stormwater $466,162 $466,162 $209,773 $256,389Roads $438,661 $488,661 0 $488,661Electrical $50,000 $0(Engineering, Admin and Legal Fees included) $1,530,988 $745,050 $32,393
Home Construction (TV Building for Homeowner Investor)7 Year 1 $980,000 $980,000 $980,000 $07 Year 2 $980,000 $980,000 $980,000 $00 Year 3 $0 $0
67% 14 $1,960,000 $0
Home Construction (TV as Developer)2 Year 1 $280,000 $280,000 $0 $280,0002 Year 2 $280,000 $280,000 $0 $280,0003 Year 3 $420,000 $420,000 $0 $420,000
33% 7 $980,000 $980,00021
Soft Costs for ConstructionConsultants $15,000 $280,931 $280,000 $931
3% Developer Fee (after all subsidies) $122,976 $0Inspections $10,500 $0
0.50% Insurance Risk and Building $17,455 $0Insurance Liability $75,000 $0Financing $35,000 $0Marketing $5,000 $0
$280,931 $931 $40
Total Soft $392,931 $3,341,138 $32,564
3 Annual soft cost over 3 years $130,977
Interest PaymentsYear 1 Int Only $10,017 $30,050 $30,000 $50Year 2 Int Only $10,017 $0Year 3 Int Only $10,017 $0
$30,050 OK $50 $2
67%Phase 1 Subs Housing - Hard and Soft Cost Expenditure $1,453,413 Dev CostsYear 1 Expenditures $1,278,777 $1,307,934Year 2 Expenditures $87,318 $108,476Year 3 Expenditures $87,318 $108,476
$1,453,413
33%Phase 1 Market Housing - Hard and Soft Cost Expenditu $1,706,706 Dev CostsYear 1 Expenditures $919,388 $933,967Year 2 Expenditures $323,659 $334,238Year 3 Expenditures $463,659 $474,238
$1,706,706
100%Phase 1 Total - Hard and Soft Cost Expenditures $3,160,119 Dev Costs Dev - PreSale $s Dev - PostSale $sYear 1 Expenditures $2,198,165 $2,241,902 ($367,375) $6,378Year 2 Expenditures $410,977 $442,714 ($342,714) $249,948Year 3 Expenditures $550,977 $582,714 ($482,713) $245,606
$3,160,119 $3,267,329 $447,048$948,979
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
45
Interest Period Loan PaymentYear 1 SD Housing Opportunity Fund 0.00% 36 $345,000 $0 Interest Only
5% 36 $0 $0 Interest Only7% 36 $0 $0 Interest Only
USDA RD Community Facilities (Road and Ele 3.75% 240 $62,000 $2,325 Interest OnlyUSDA RD 1780 (55% of Stormwater) 3.00% 480 $256,389 $7,692 Interest Only
$10,017
Year 2 SD Housing Opportunity Fund 0.00% 36 $345,000 $0 Interest Only5% 36 $0 $0 Interest Only7% 36 $0 $0 Interest Only
USDA RD Community Facilities (Road and Ele 3.75% 240 $62,000 $2,325 Interest OnlyUSDA RD 1780 (55% of Stormwater) 3.00% 480 $256,389 $7,692 Interest OnlyConventional Construction Loan 7.00% 36 $0 $0 Interest Only
$10,017
Year 3 SD Housing Opportunity Fund 0.00% 36 $345,000 $0 Interest Only5% 36 $0 $0 Interest Only7% 36 $0 $0 Interest Only
USDA RD Community Facilities (Road and Ele 3.75% 240 $62,000 $2,325 Interest OnlyUSDA RD 1780 (55% of Stormwater) 3.00% 480 $256,389 $7,692 Interest OnlyConventional Construction Loan 7.00% 36 $0 $0 Interest Only
$10,017
Total Interest $30,050Per unit Interest $1,307
Housing Assistance Council
Minnesota Housing PartnershipHousing Assistance Council
Minnesota Housing PartnershipHousing Assistance Council
Minnesota Housing Partnership
Annual Water Costs (Year 1) $12,000Annual Wastewater Costs $6,000Annual Stormwater Costs $620Annual Roads Costs $15,100Year 1 O&M Costs $33,720
* application will be made after year 1 for OST Rural Water to take over O&M of Water. If accepted, O&M costs would be reduced for future years
Annual Wastewater Costs $6,000Annual Stormwater Costs $620Annual Roads Costs $15,100Year 2 annual O&M Costs $21,720
Year 3 annual O&M Costs $21,720
Total 3-year O&M costs $77,160Developer equity for 3-year operating expenses (balance after HOA fees) $14,328
FINANCE COSTS/LOAN REPAYMENT
OPERATION AND MAINTENANCE
TOTAL PAYMENTS (LOANS AND COSTS)Year 1 $43,737Year 2 $31,737Year 3 $31,737
$107,210
SUM OF DEVELOPMENT COSTS AND O&M (NOT INCLUDING LONG TERM LOAN PRINCIPAL PAYMENTS)
Year 1 $2,241,902Year 2 $442,714Year 3 $582,714
$3,267,329
Cash available after completion to pay down debt $948,979
Long Term Loans Repayment - End of Year 3 Outstanding Principal Prior Debt RepaymtUSDA RD Community Facilities (Road and Elec) $62,000 $886,979USDA RD 1780 (55% of Stormwater) $256,389 $630,590Minnesota Housing Partnership $0 $630,590SD Housing Opportunity Fund $345,000 $285,590Housing Assistance Council $0 $285,590Conventional Construction Loan (drawdown of $470K year 2) $0 $285,590
TOTAL DEBT $663,389
TOTAL DEVELOPMENT COST $3,930,718 IFF LOC$190,000
IFF LOC CFAD: $95,590
46
Marketing Feasibility
As described in the Market Analysis, Proposed Project section (see pages 22-23) this project is designed to achieve affordable homeownership opportunities for the demographic of the community defined by the regional boundaries of the Pine Ridge Indian Reservation. This project description outlines the subsidies and lending products available.
The sales strategies of Thunder Valley CDC have created a pipeline of eligible and interested community members and the Home Keeper database maintained by Thunder Valley’s full time Home Ownership Coordinator creates a method to match families with the right subsidy and lending package for them, and create a mortgage- readiness pathway.
Through partnership with the Oglala Sioux (Lakota) Housing Authority, and reservation-based nonprofits such as Mazaska, and Oglala Sioux Tribe Partnership 4 Housing, the families on the mortgage-readiness pathway will have access to financial literacy and homeownership literacy classes to prepare them for the new responsibilities they are embracing.
Families interested in purchasing a home in Thunder Valley Regenerative Development are invited to participate in the design process of the homes. Several types of home design that integrate the principles of energy efficiency, healthy materials, and ease of maintenance will be developed with community input in the Spring of 2015.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
47
Management Feasibility
MANAGEMENT POSITIONSExecutive DirectorThe person who holds the Executive Director position will have overall strategic and operational responsibility for the Organization’s staff, programs, expansion and execution of its mission. This position requires constant contact, collaboration and supervision of the Organizations departments, programs and directors. The Executive Director will report to the Board of Directors of the Organization and will directly supervise the Deputy Director and the Development Director. The Executive Director will have primary responsibility for assuring the Organization has an appropriate budget and for the fundraising activities.
Responsibilities: • Actively engage the Organization’s Board,
employees and volunteers to ensure the Organization’s mission is being accomplished.
• Ensure the Organization has effective systems to track scaling progress and regularly evaluate program components, to measure successes in order to appropriately communicate such successes to the Board of Directors and other stakeholders.
• Expand revenue generating and fundraising activities to support existing program operations and regional expansion while simultaneously retiring the Organization’s debt.
• Develop new opportunities through the growth of external prominence and presence.
• Speak on behalf of the Organization and represent the Organization at major functions and public venues.
Development Director The person who holds the Development Director position will be responsible for the overall strategy and implementation of the Organizations efforts to develop a fully integrated fundraising effort. The Development Director will focus on creating and finding new opportunities for the Organization to obtain grant funding from public and private grant makers and foundations, as well as build relationships with individual donors to ensure the funding of the Organization. The Development Director will also have primary responsibility for ensuring that all grants in progress are being executed properly by managing all reporting requirements. The Development Director reports to the Executive Director.
Responsibilities: • Develop and implement the Organizations
annual fundraising strategy. • Seek out and obtain appropriate grant
opportunities. • Implement and manage the Organization’s
donor and foundation management system and oversee staff responsible for the data entry and gift entry in such system.
• Drafting and tracking proposals and reports for all foundation and corporate fundraising.
• Draft letters of inquiry and letters of intent for fundraising opportunities.
• Research federal, state and local funding opportunities.
• Prepare case statements for the Organization’s projects, programs and initiatives.
• Track new trends in philanthropy and align the Organization’s messaging, where appropriate, with such changing philanthropic trends.
• Leads coordination efforts on drafting and preparing the Organizations annual report.
The resumes for individuals in the management and staff positions described below may be found in the Appendix A.
48
Deputy Director The person who holds the Deputy Director position will be responsible for managing the operations of the Organization and reports to the Executive Director. The Deputy Director will ensure policy and procedures for all organizational functions are developed and appropriate for each department, program and activity of the Organization. The Deputy Director will work closely with the Development Director and the Executive Director to create and update the Organization’s strategic goals and implement those goals. The Deputy Director will perform duties as required where the Executive Director is not available.
Responsibilities: • Manage day to day operations of the
Organization. • Work with the leaders and managers of the
Organization to ensure operations of the Organization are running efficiently and effectively.
• Fulfill duties of the Executive Director where necessary and appropriate.
• Manage relationships with leadership of external organizations.
• Ensure all programs are operating effectively and in a way that meets the standards of any grants or funding related to such program.
• Oversee policies and procedures• Contract negotiation, sub grant agreement
negotiation
Director of FinanceThe person who holds the Director of Finance position will be responsible for the operations and functions of the office and accounting procedures of the Organization. The Director of Finance will manage all the administrative functions required to keep the office running in an efficient manner. The Director of Finance will be responsible for ensuring payroll, bookkeeping and other administrative functions are being performed.
Responsibilities: • Prepare necessary payroll information for
salaries and wages to be paid out, including preparing all necessary new hire paperwork.
• Manage the day to day accounts receivable and accounts payable functions of the Organization.
• Report to the Deputy Director and Executive Director as to the status of the financial condition of the Organization.
• Ensure line item reporting required by grants made to the Organization is being completed in a timely and diligent manner.
• Manage the Organization’s Quickbooks functions.
• Budget forecasting• Maintain budgets for programs and
organization• Fund allocation• Audit preparation
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
49
STAFF POSITIONSCommunity Engagement CoordinatorThe person who holds the Community Engagement Coordinator position will be responsible for the administration of all activities related to community engagement and the assistance in the development strategy surrounding community engagement. This position requires the planning and facilitation of various community engagement activities, as well as providing assistance in the creation and implementation of a community engagement strategy. This position will report to the Deputy Director, regarding completion of projects and tasks and will work in conjunction with the Development Director on the preparation of a strategic plan for Community Engagement. The responsibilities of the person who holds this position include:
Responsibilities: • Assist in the creation of a community
engagement strategy. • Assist in creating a plan for implementation of
the community engagement strategy. • Review and evaluate engagement systems
and activities and enhance systems where appropriate to improve effectiveness.
• Identify potential community partners and build lasting and reciprocal relationships with those partners.
• Provide opportunities for early involvement and meaningful voice in identifying community needs and shaping solutions in partnership in support of other organizations.
• Ensure the needs of culturally and economically diverse communities are met and identify and remove barriers to participation by the communities.
• Make use of training, one-on-one interviews, and small group meetings and other techniques to facilitate engagement of residents in taking initiative to solve community problems.
• Maintain accurate records and prepare reports related to program activities.
• Take pictures and other media for use on the organizations website, for use in media and public relations.
Home Ownership CoordinatorThe person who holds the position of Homeownership Coordinator will perform administrative and counseling work that includes various complex calculations in order to provide information and assistance to participants in the Homeownership Programs. The Homeownership Coordinator will conduct various outreach programs in order to recruit interested participants and increase the visibility of the Homeownership Program. The Homeownership Coordinator will also manage the relationships with the Sustainable Homeownership Program partners and is responsible for all deliverables of the Organization under that program.
Responsibilities: • Responsible for taking, documenting and
following up with in-coming communications from individuals interested in participating in the Homeownership Program.
• Maintain up to date waiting list for the Homeownership Program and manages all communications with individuals regarding updates in their status.
• Processes all applications, calculation documents, communicates with and forwards application to the chosen lenders and follows up with any documents needed by the lenders.
• Conducts orientation briefings for all Homeownership Programs to provide potential participants with any information necessary. Ensure follow up with potential participants takes place.
• Provides potential homebuyers with counseling services, including debt management, homebuyers and foreclosure counseling.
• Create, compile, and mail out informational packets to potential homeowners.
• Maintains communication with any participants during the homeownership application process and assists with preparing any additional information required by a lender.
• Prepares closing and funding instructions to be sent to the Title Company prior to closing.
• Schedules follow up counseling sessions for participants after the closing of their financing.
• Prepares reports as to the Homeownership Program progress and evaluates the effectiveness of the procedures and makes recommendations as to procedures that may need to be altered.
• Conducts various outreach activities to increase awareness of the Homeownership Program.
• Maintains the marketing supplies, including banners, for sale signs, brochures and all other marketing collateral.
50
Program Manager - Workforce Development ProgramThis person who holds the position of Program Manager of the Workforce Development Program will be responsible for the operations of the Workforce Development Program and will supervise all other Workforce Development Program team members, including the Education Coordinator and the Construction Manager. The Program Manager will report to the Deputy Director and will work closely with the Deputy Director and Development Director to ensure the operations of the Workforce Development Program meet the guidelines and requirements of grant funding being applied to the program.
Responsibilities: • Develop, organize and manage internal
Workforce Development Program operations, including day to day functions and overall strategic plan components.
• Manage the provisions of the relationships between the program’s participants and the Organization, through supervision and regular meetings with the Education Coordinator and the participants.
• Supervise teaching and counseling staff. • Assist in planning and organizing special
events, recognition and award ceremonies for the program participants.
• Report to the Deputy Director and Development Director on the progress of the program.
• Ensure program policies, goals and mission are being carried out by all staff and team members participating in the operations of the program.
Construction ManagerThe person who fills the Construction Manager position will be responsible for the overall development and implementation of the construction training curriculum, both in classroom and in field. The Construction Manager will oversee the operations of all construction related activities and manage any training assistants. The Construction Manager will work closely with the Education Coordinator and Program Manager to ensure all program participants are receiving the necessary instruction and skills and will evaluate their progress through the program.
Responsibilities: • Develop a detailed construction plan and
schedule for the participants and the development components.
• Assess the potential construction sites. • Develop construction budgets, including
materials and equipment costs. • Coordinate and manage the in field progress
and monitor construction costs. • Manage any bid process for subcontractors
and coordinate all subcontractor work. • Define the work assignments and priorities for
program participants and assign appropriate trainers to each.
• Teach construction related skills through close collaborative work with other team members to ensure participants are receiving in class and in field education and acquiring all necessary skills.
• Participate in leadership discussions and decision-making processes to determine the most effective methods of operation for program success.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
51
Financial Feasibility
PROJECT DEVELOPMENT COSTSThe total project cost to construct sustainable water, wastewater, storm drain and roadway infrastructure is below. Also included below are non-construction costs such as engineering, staking, contingencies, legal and administration by the development.
CONSTRUCTION COSTS $237,360
NON-CONSTRUCTION COSTS $102,065
$339,425
CONSTRUCTION COSTS $178,000
NON-CONSTRUCTION COSTS $58,740
$236,740
CONSTRUCTION COSTS $350,497
NON-CONSTRUCTION COSTS $115,665
$466,162
CONSTRUCTION COSTS $329,820
NON-CONSTRUCTION COSTS $108,841
$438,661
CONSTRUCTION COST SUBTOTAL $1,095,677
NON-CONSTRUCTION COST SUBTOTAL $385,311
$1,480,988
$64,391
PROJECT TOTAL
TOTAL
STORMWATER
TOTAL
ROADS
TOTAL
TOTAL LOT COST (23)
PROJECT COSTS
WATER
TOTAL
WASTEWATER
TVCDC is applying for grant funded water supply and wastewater systems through the USDA RD 306C program and 1780 funding for the stormwater system, which can be 45% grant and 55% low interestLoan of total project. Roads and electrical (site electrical = $50,000) are the only systems in the low interest loan category at a total cost of $745,050 and a resulting infrastructure-related lot cost of $32,393.
OPERATING COSTS INCLUDING MAINTENANCEOnce construction of the proposed Thunder Valley Community water, wastewater, storm drain and roadways are complete, property owners of the Thunder Valley Community will be charged a fee to live within the planned community similar to a Home Owner’s Association fee. The fee will be used to operate and maintain the proposed systems.
Thunder Valley will complete a maintenance/operations agreement with OST Rural Water or a third partycontractor to maintain the water supply system. OST Rural Water staff is certified and best equipped tomaintain and monitor the proposed improvements. Since the site will be newly constructed there shouldbe little to no water loss within the system. If the Bureau of Reclamation allows OST Rural Water to takeover the potable water system for this development through the creation of a water utility district, thenOST Rural Water will take on all associated operation and maintenance costs of water supply at that time.
52
FIXED COSTS AND THREE-YEAR PROJECTIONSSee the proforma in the Feasibility Analysis section, pages 42-45.
Income will be generated by implementing a monthly fee to the property owners that will fund operations and maintenance of the recommended alternatives for water, wastewater, stormwater and roads. The recommended alternative for each component takes into account the burden that will be placed on the individual property owner and recommends components that are sustainable, modest in cost and provide low operations and maintenance cost.
ANNUAL O&M
SYSTEM ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL
Testing, Monitoring, Flushing 1 $6,000.00
Emergency Repairs 1 $6,000.00
$12,000.00
Electricity for 4 systems 12 Yearly $200 $2,400
Septic Tank Maintenance/Pumping 1 Yearly $3,000 $3,000
Inspections/Repair 2 Yearly $300 $600
$6,000
Curb and Gutter Maintenance 1 10 years $1,200 $120
Storm Drain Cleaning 1 Yearly $500 $500
$620
Seal Coat 1 4 Years $12,000 $3,000
Patching 1 Yearly $4,100 $4,100
Process in Place, Add Aggregate and Reblot
1 10 Years $80,000 $8,000
$15,100
$33,720$1,466
$122
Roads Annual O&M Costs
ANNUAL OPERATIONS & MAINTENANCE COSTS
TOTAL Annual O&M Costs Annual O&M Per Lot (23)
Monthly O&M Fee Per Lot (23)
WATER
WASTEWATER
STORMWATER
ROADS
Yearly
Water Annual O&M Costs
Yearly
Wastewater Annual O&M Costs
Stormwater Annual O&M Costs
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
53
INCOME STATEMENT AND CASH FLOW STATEMENT
Jan 1 - Mar 3, 15
198,551.1270,000.00
4,759.932,500.002,066.61
277,877.66277,877.66
13,359.39
6010 · Salaries and Wages 126,580.026020 · Payroll Taxes 19,426.326030 · Health, Dental, Life 13,017.316040 · Simple IRA 1,520.236060 · Workers Comp 576.25
161,120.13
6110 · Accounting 12,848.006120 · Consulting 24,732.01
37,580.011,250.95
6440 · Research and survey incentives 1,687.006430 · Program Supplies -5,980.45
-4,293.451,823.05
108.997,657.072,142.44
876.71573.09
59.95
6630 · Office Supplies 3,085.406640 · License & Fees 2376600 · Office Expenses - Other 1,677.98
5,000.385,369.60
2752,953.952,492.25
26.970
6940 · Radio - Newspaper 1,713.006910 · Printing 1,970.006900 · Marketing & Outreach - Other 250
3,933.00242,309.48
35,568.18
5,241.475,241.47
-5,241.4730,326.71
6000 · Salaries & Benefits
Ordinary Income/ExpenseIncome
4000 · Grant Revenue - Federal4010 · Grant Revenue - Foundation4100 · Contributions / Donations4200 · Sponsorship Income4600 · Program Income
Total IncomeGross Profit
Expense6830 · Stipends
6570 · Meetings
Total 6000 · Salaries & Benefits6100 · Professional Fees
Total 6100 · Professional Fees6160 · Nonstaff Travel6400 · Program expenses
Total 6400 · Program expenses6450 · Telephone6460 · Postage6500 · Staff Travel6550 · Training/Conference6560 · Local Mileage
Total Expense
6580 · Fundraising expense6600 · Office Expenses
Total 6600 · Office Expenses6720 · Utilities6725 · Equipment Rental6730 · Repairs & Maintenance6740 · Business Insurance6745 · Real Estate Tax6800 · Miscellaneous6900 · Marketing & Outreach
Total 6900 · Marketing & Outreach
Net Income
Net Ordinary IncomeOther Income/Expense
Other Expense8000 · Capital Expenditures
Total Other ExpenseNet Other Income
54
BALANCE SHEET4-Mar-15
100343,322.09343,422.09
142,500.007,837.80
999.65151,337.45
494,759.54
99,138.00123,520.8840,385.4810,314.398,931.475,526.775,769.00
-27,080.70266,505.29761,264.83
18,412.7218,412.72
4,300.001,763.00
100
2210 · Federal Withholding 622215 · FICA Payable 141.62220 · SUTA Payable 9,529.332225 · Simple IRA 5,556.682230 · Payroll Deductions -5002200 · Payroll Liabilities - Other 736.49
15,526.10
2310 · Accrued Payroll 12,379.9512,379.95
34,069.0552,481.77
2,899.002,899.00
55,380.77
260,549.53264,476.00
150,531.8230,326.71
705,884.06761,264.83
Total Checking/Savings
ASSETSCurrent Assets
Checking/Savings1000 · Petty Cash1020 · Checking - Security First Nat'l
1720 · Vehicles
Other Current Assets1260 · Unsecured Note Receivable1250 · Prepaid Insurance1350 · Grant Receivable
Total Other Current AssetsTotal Current AssetsFixed Assets
1750 · Predevelopment Costs1700 · Buildings1710 · Building Improvements1715 · Land
Other Current Liabilities
1730 · Computer Equipment1740 · Furniture & Fixtures1799 · Accumulated Depreciation
Total Fixed AssetsTOTAL ASSETSLIABILITIES & EQUITY
LiabilitiesCurrent Liabilities
Accounts Payable2000 · Accounts Payable
Total Accounts Payable
Total Long Term Liabilities
2415 · Unearned Revenues2420 · Current Portion - Capital Lease2110 · Direct Deposit Liabilities2200 · Payroll Liabilities
Total 2200 · Payroll Liabilities2300 · Accrued Liabilities
Total 2300 · Accrued LiabilitiesTotal Other Current Liabilities
Total Current LiabilitiesLong Term Liabilities
2425 · Capital Lease Payable
Total EquityTOTAL LIABILITIES & EQUITY
Total LiabilitiesEquity
3100 · Unrestricted Net Assets3200 · Temporarily Restricted3900 · Retained EarningsNet Income
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
55
SOURCES AND USES OF FUNDSSee the proforma in the Feasibility Analysis section, pages 42-45.
REVIEW OF THIRD PARTY FUNDING COMMITMENTSee Appendix B for documents supporting third party funding commitment including:
Audit performed by Casey Peterson & Associates, December 2013Letter of Commitment from Oglala Sioux (Lakota) Housing AuthorityAward letters from: Enterprise Community Partners, Inc., $50,000, August 22, 2013 Northwest Area Foundation, $500,000, March 25, 2014 Bush Foundation, $200,000, August 7, 2014 Surdna Foundation, $25,000, November 19, 2014:
56
Technical Feasibility
See the Thunder Valley Regenerative Development Preliminary Engineering Report, submitted April 2, 2015 for complete analysis of alternatives and recommended approach to Phase 1 infrastructure:
• Potable Water Supply• Wastewater Treatment• Stormwater • Roads
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
57
58
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
59
Conclusions and Summary
60
The Thunder Valley Regenerative Development is a project of the non-profit organization, Thunder Valley Community Development Corporation (TVCDC). The mission of this Lakota nonprofit organization is:
Empowering Lakota youth & families to improve the health, culture and environment of our communities, through the healing and strengthening of cultural identity.
The Executive Director, Nick Tilsen, and the Board of TVCDC will be the responsible parties to steward the financial resources of the non-profit and its projects. Phase 1 of the Thunder Valley Regenerative Development is focused on providing affordable home ownership opportunities to Lakota families in need.
Because of the mission and structure of this organization, the development proforma and funding streams are not typical. At the forefront of the layered strategic process to combine funding sources, subsidies, and programs, is the thought that each layer reduces the cost of a healthy, stable home, and makes self-sufficiency attainable for another Lakota family. The Thunder Valley Workforce Program and the concept of homeowner sweat equity are at the heart of this solution to build 21 single family homes, during Phase 1 of development.
The USDA Rural Development 502 Direct Loan will be the primary lending project used for eligible low-income families. This lending product provides for both construction drawdowns and permanent
lending. During the construction process of Phase 1 homes, the families qualifying for the loan and Thunder Valley CDC will share access to custodial accounts for the materials and labor of building 12 homes under the Self Help sweat equity program, six each year for two years.
At the homeowner’s closing the lending institution creates an account for the full construction cost (currently estimated at $140,000). Thunder Valley does not take on the financial risk for construction costs for the 12 homes developed. Thunder Valley receives the cost of the lot (infrastructure costs) from the families as well as a 3% developer fee, after all subsidies are paid out. This fee supports operations and management of construction processes. The monthly homeowners association fee (currently estimated at $132) pays for the estimated Operations & Maintenance costs of Water Supply, Wastewater management, Stormwater safety, and Roads. It is the goal of TVCDC to make sure homeowners are paying the smallest mortgage and HOA fee possible, not to profit from sales or construction processes.
The other nine homes developed during Phase 1 will be funded and executed differently. The Workforce Development Through Sustainable Construction Program run by Thunder Valley CDC will build one house per year over the three years of Phase 1. Funding for construction materials for this program are committed by the South Dakota Opportunity Fund with a zero interest three year loan. Part of this loan will also pay for some of the Road infrastructure costs.
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
61
Six of the 21 homes in Phase 1 will be commercially constructed and sold at market rate. Two market rate homes will be built per year and each tiospaye of seven homes will have two market rate, one Workforce, and four Self Help homes.
Phase 1 is a three-year process with all debt paid off in the same time frame. Since the construction loans for 12 homes are taken on by the families and not Thunder Valley, three are constructed through the Workforce Program.
The planned schedule is to begin construction of first homes and infrastructure (water supply, waste water, stormwater, and roads) in the summer of 2015, with infrastructure and exterior home construction complete before the winter of 2015. It is planned that all 21 homes will be complete and occupied by winter of 2018.
This complex process required to build affordable, high-quality homes on Pine Ridge Indian Reservation is not easily reflected in a typical proforma. However, the sources and uses are coded to show the flow of the transactions between grants or loans, and homeowners or Thunder Valley. In every case possible, Thunder Valley will defer to the homeowner as developer, and simply act as facilitator of a construction process so as to reduce risk to Thunder Valley and cost to the homeowner.
The mission of Thunder Valley CDC is truly the driving force behind the proposed development process and business plan explained in this document.
62
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
63
AppendicesAPPENDIX A: RESUMES, P. 64APPENDIX B: DOCUMENTS SUPPORTING THIRD PARTY FUNDING COMMITMENT, P. 82
64
Appendix A: Resumes
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
65
Resumes are arranged in the following order:
MANAGEMENT POSITIONSExecutive Director: Nick TilsenDevelopment Director: Liz WelchDeputy Director: Sharice DavidsDirector of Finance: Barbara LeBeau
STAFF POSITIONSCommunity Engagement Coordinator: Andrew IronshellHome Ownership Coordinator: Star MeansProgram Manager - Workforce Development Program: Beau White
66
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
67
68
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
69
70
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
71
72
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
73
74
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
75
76
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
77
78
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
79
80
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
81
82
Appendix B: Documents Supporting Third Party Funding Commitment
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
83
Documents supporting third party funding commitment are arranged in the following order:
Audit performed by Casey Peterson & Associates, December 2013Letter of Commitment from Oglala Sioux (Lakota) Housing AuthorityAward letters from: Enterprise Community Partners, Inc., $50,000, August 22, 2013 Northwest Area Foundation, $500,000, March 25, 2014 Bush Foundation, $200,000, August 7, 2014 Surdna Foundation, $25,000, November 19, 2014
84
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
85
86
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
87
88
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
89
90
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
91
92
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
93
94
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
95
96
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
97
98
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
99
January 16, 2015
Nick Tilsen, Executive Director
Thunder Valley Community Development Corporation
PO Box 290
Porcupine, South Dakota 57772
LETTER OF COMMITMENT
Dear Mr. Tilsen,
Oglala Sioux Lakota Housing Authority recognizes and supports Thunder Valley CDC’s commitment to the development of affordable housing in its Regenerative Development north of Sharps. Thunder Valley CDC has been working diligently identifying resources, submitting funding applications and securing financial commitments for the development of affordable housing units for the people of Pine Ridge. Phase 1 of the Thunder Valley Regenerative Development includes 14 single‐family home ownership units. The Oglala Sioux Lakota Housing Authority will commit to $5,000 a unit for 14 Units, for a total of $70,00 over a two‐ year period. These 14 Units will be included into to the Oglala Sioux Lakota Housing Authority’s NAHASDA Housing Plan. 100% of the subsidy will be used to lower the cost of the lot and house to help leverage additional subsidy for the sole purpose of making the project financially feasible and help Native American Individuals achieve the dream of homeownership.
The Oglala Sioux Lakota Housing Authority is pleased to lends it support and commitment to Thunder Valley CDC for Phase 1 of the project. Upon completion and success of Phase 1 the Oglala Sioux Lakota Housing Authority will potentially explore additional partnerships with Thunder Valley CDC in future Phases of the project. The Oglala Sioux Lakota Housing Authority is deeply committed to providing housing for Native American Families on the Pine Ridge Indian Reservation.
Sincerely,
Paul Iron Cloud, Executive Director
Oglala Housing Authority
1 Highway 18
Pine Ridge, South Dakota
100
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
101
102
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
103
104
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
105
106
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
107
108
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
109
110
HO
USI
NG
PLA
N
TH
UN
DE
R V
ALL
EY
RE
GE
NE
RA
TIV
E D
EV
ELO
PM
EN
T
111
