Confronting the Housing Crisis

"You can't throw a dart at the bible and not find a passage related to caring for your neighbor". Way back in 2017, recently re-elected Rapid City Mayor Steve Allender shared this insight, while addressing area Church pastors at Black Hills Area Habitat for Humanity's gathering. He went on to call out the need to "inspire the desire" for generosity. He points out the sobering truth that Rapid City, like many cities in America, have a fragile economic base, where "for every homeless person, there may be 100 more people that are one pay check away from homelessness".

Rapid City is not waiting for the problem to get worse, and Mayor in his renewed term is planning toward new facilities and services that can help address the needs of those who are vulnerable to homelessness, but less for those who seek to be home owners. While exploring all options to help engage caring citizens of Rapid City to generously give back, Mayor believes that partnering with faith communities to confront the crisis through compassionate ministry and thoughtful investment is not only smart, but biblical.

I believe that the City budget should also directly reflect the housing crisis to which the Mayor speaks, and fund priorities that have the greatest long-term, transformational impact. The non-profit sector is very adept at serving people, but private sources of funding are tapped by a whole host of community needs and are not necessarily available to the scale needed for meaningful impact in the affordable home ownership space. Black Hills Area Habitat for Humanity has a 28 year track record of housing over 500 people with affordable mortgages in the $300-$500 range, and can build housing for 20% less on average than even the most affordable builders, due to our generous volunteer builders and in-kind suppliers.

In FY 2019 alone, we have moved nine new families into affordable homes in Rapid City that they will own over a 30 year mortgage period, with payments under 30% of their income. They will save over $1M in interest payments from traditional lending options, for which they would not qualify in the first place. Most of these new home owners are spending 30-40% less on housing per month than they did renting.

Mayor Allender is exactly correct, that freeing up cash flow for low-wage workers so that their housing expense is 30% or less of gross monthly income, is essential to stabilizing the people we seek to serve. But decreasing their housing cost through generous financing options with low or no interest, is also an excellent option. Public investment is required to provide subsidy to bring the overall housing construction and repair costs down to a level that is affordable for people that seek to grow roots in the community by purchasing a home. Funding in the form of down payment assistance, first time home buyer credit, and dedicated land set asides all can go a long way to meeting the affordable home ownership challenge.

Municipal leadership like Mayor Allender's is laudable, and he is proving to be a champion for the idea that Everyone Deserves a Decent Place to Live. If Rapid City can prioritize it's budget according to the needs of this housing crisis, Rapid City's light will not be hidden and our neighbors can have secure and affordable housing even in a strong, growing economy. It is feasible and it is the right thing to do for our future and for our hard working residents.