Black Hills Area Community Foundation

Report date
November 2021

What has been most instrumental to your progress?

A strengthened partnership with Elevate Rapid City.
On July 23rd, David Lust passed away unexpectedly. This was a heartbreaking loss in so many ways. David was our lead consultant in our housing work addressing development, finance, and policy. Through David, we developed a strong relationship with Elevate Rapid City, our local economic development entity whose mission is to 'elevate the region for all'. With leadership at Elevate Rapid City and the stakeholders for our Strategic Housing Trust fund, we have rebounded and rebuilt our housing initiative. We will be providing funding to Elevate Rapid City to house a new position that will focus on our area's housing needs. This Housing Coordinator will case manage new projects, connecting state and local resources as well as serving as a liaison to address policy issues. We continue to focus on our population whose earnings are less that our Area Median Income. This position will also interface with the Black Hills Regional Homeless Coalition and its members to help move people into stable housing.
Expanding our voice throughout the State
In the Black Hills, our housing costs have skyrocketed growing by 9% since the beginning of the year. This is three times the rate of increase in previous years. During the past legislative session, our efforts to address the housing needs in Rapid City gained attention through our Strategic Housing Trust Fund, an innovative new tool in our toolkit. We have been educating local policy makers through the Legislative Summer Study on Housing and other meetings. We know that our state will have a significant budget surplus and it is our hope that these dollars will be designated to address housing throughout our state. We have continued to build on this with our policy makers and are sharing our Housing Trust Fund model with others in the state.
Request for City Vision Funds and our October Housing Summit.
In August, we submitted a request to the Rapid City Vision Fund Committee for a $7 million investment in our Strategic Housing Trust fund. This fund will primarily be used for PRI investments in for profit and nonprofit development of rental housing that addresses our workforce and lower income needs. We met with the Vision Fund advisory committee in late September, they will present their recommendations to the City Council on December 13th. On October 20th, we hosted a multi-stakeholder housing summit with 125 participants including local nonprofits, state and policy makers including legislators and representatives from the Governor's office, employers and developers. There were three facilitated discussion panels - Policy and Development, Thriving Communities, and Innovations in Housing. The summit allowed us to share progress made to date as well as provide an opportunity for all of us to learn more about our needs and possible solutions.

Key lessons learned

We have had our share of 'stumbles' with this work. In 2020 and into 2021, the pandemic has slowed our progress. This summer we lost David Lust. We have had to regroup and refocus regularly. Addressing housing is long, slow work and although progress can be made, the work will not end. This is an intractable issue that must be addressed continually and be an area of local focus.
We have learned and have worked to increase the voice of philanthropy in public policy, both at the local and state level. This advocacy is more about educating leadership and keeping the issue and possible solutions in front of everyone. Our hope is that philanthropy can be a powerful catalyst in addressing the intractable issue of housing people.

Reflections on inclusive, collaborative or resourceful problem-solving

Resourceful. We have had to make significant adjustments for the past two years in order to keep our efforts moving forward. In 2020 and into 2021, we were focused more on keeping people housed during the pandemic. This need dramatically increased due to lost jobs and reduced hours. With the loss of our key consultant, we have realigned our work and adjusted positions. It is my hope that with new working structure in place, our first PRI in place, and the ability to engage more face - to - face conversations, we will continue our forward momentum. We are working to develop resources through philanthropy, as well as state and local public funding. We now have a $5 million matching fund commitment from the John T Vucurevich Foundation and a $1 million matching commitment from the Dakota Charitable Foundation.

Other key elements of Community Innovation

Advocacy and public policy.
In order for our community to make significant progress, we need to engage a larger conversation with other communities and with our state government. Housing is an expensive problem. We estimate that for every million dollars deployed through our Strategic Housing Trust Fund, approximately 40 new housing units can be supported with income indexed rents over 30 years. We know our need for affordable rental units has increased from 3500 in the 2018 study to an estimated 5000 units. Significant state funds, city funds, and philanthropic funds will be necessary to make progress. Philanthropy has challenged our city and our state to invest significantly in affordable housing. The Dakota Charitable Foundation has offered $1 million for the Strategic Housing Trust Fund if the City awards $5 million; the John T Vucurevich Foundation is offering up to $5 million in matching funds for donations - public, private or philanthropic - to the Strategic Housing Trust Fund. Our original goal for this fund is $30 million with State Funds matching the dollars we gather locally.

Understanding the problem

We have learned so much about the onerous process for developers to work with the City of Rapid City. There are new, young, brilliant people working in the department and it is our hope that our work can help our City's policies and procedures to change for the better. Our Strategic Housing Trust Fund committee is encouraging a 'red tape review' effort - analyzing the City's planning, zoning, and process and identifying opportunities to encourage development - particularly for infill property, either new or rehabilitated structures. We are also encouraging a review of city fees and county taxes that impede development of housing that serves those making less than 80% of AMI.

If you could do it all over again...

Affordable Housing is everybody's problem. Significant work needs to happen continually to address public policy and public funding, at both the state and local levels. Beyond funding, the system of housing needs consistent attention, addressing policies related to development as well as connections to organizations who work to move people out of shelter and into more stable housing. With many elected positions affecting progress, work that addresses housing and affordability is a moving target that requires consistent attention.

One last thought

We are at an exciting juncture and our work is receiving a lot of attention. We are hopeful that this translates into additional funding and changes in policy that help to promote development and affordability.