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Preserve
South Dakota operates a statewide
revolving loan fund available to members prepared to undertake quality
rehabilitation work on their home or commercial building. These loans
are offered at a low interest rate in order to encourage preservation.
To date, over $500,000 has been loaned.
• HOW DO I QUALIFY FOR A REVOLVING LOAN?
First, the building that you expect to improve with the funds must
be "historically significant" (see explanation below). Second, the borrower(s) must demonstrate the financial ability to make
regular monthly loan payments. Funds are made available to individuals
regardless of race, handicap, age, religion, gender, national origin, or
familial status.
• HOW DO I KNOW IF MY PROPERTY IS HISTORICALLY SIGNIFICANT?
A property is considered historically significant if 1) it is listed
on the National Register of Historic Places, 2) it is listed on a local
register of historic or cultural resources, or 3) it is eligible for
listing in the National Register of Historic Places or a local register
after renovations. In general terms, this means that a structure,
building or site must be at least 50 years old and retain its original
architectural integrity.
• WHAT IMPROVEMENTS CAN I MAKE USING THE LOAN FUNDS?
Loan funds can be used for restoration, rehabilitation and repair,
acquisition, and project-related costs. The highest priority for funding
is placed on exterior improvements, including windows, doors,
foundations, porches, roofs, chimneys, brick, masonry, siding repair,
seismic retrofitting, and reconstructing existing additions. Secondary
priority is placed on interior systems, including the heating, plumbing,
and electrical finishes. For example, a revolving loan application will
not be approved for a kitchen or bathroom-remodeling project if the roof
and foundation need to be repaired, unless they are part of a more
comprehensive renovation plan.
All construction materials and labor costs on renovating existing
building aspects are eligible, including costs such as engineering
services, architect’s fees and permits. Loan funds may not be used for
landscaping, new construction, fences, non-historic retaining walls, and
concrete pads (patios, parking, etc.) In addition, the funds may not be
used for incompatible materials, inappropriate rehabilitation
techniques, refinancing existing mortgages or for projects that have
already been completed. Funding requests for work in progress will be
reviewed on a case-by-case basis.
• WHAT ARE THE TERMS OF THE LOAN?
Loan amounts are limited to $15,000 per project at a 4.95% interest
rate. All loans are amortized for a maximum of seven (7) years. Security
is required for collateral, usually in the form of a mortgage on the
property or other tangible property.
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