New housing trust fund gets big boost from Elevate Rapid City A standard household dedicates 30% of solve the pressing need of affordable housing in the their household income on housing. That is the area,” said Alan Solano. Solano chairs the advisory threshold used by experts to determine what is group that will make recommendations for the “affordable” housing. But in Rapid City, that is the release of funds in the form of grants and lowexception far more than it is the rule. In fact, more interest loans. “Using a collective impact approach than half of Rapid City households earning less brings a broad array of stakeholders together under than $20,000 per year were spending more than 50 a shared vision. Part of that vision was the creation percent of their income on housing. of a local housing trust fund.” This is a problem. The disparity creates a ripple While the trust fund is still in the start-up phase, effect across the economy. Money spent on housing, Solano says the initial response from the local means less money spent in other areas. “We know philanthropic community and Elevate Rapid City that if people and families have to spend more than has been very strong. Tom Johnson of Elevate says 30 percent of their incomes on the cost of housing affordable housing is a quality of life, workforce, each month, it’s too much, and prosperity goes business development, and infrastructure issue all down, not up,” said Tom Johnson, President and CEO wrapped into one. of Elevate Rapid City. “We simply can’t have this.” “It’s as critical to the future of the area as Some of this gap is caused anything we do,” Johnson by a limited market. The said. “Without a quality and Rapid City area is short affordable place to live, you nearly 3,500 units costing can’t keep a workforce, and less than $900 per month. you can’t raise incomes.” Rates continue to climb, To address short-term while incomes do not. needs, the Rapid City In a community already Strategic Housing Trust struggling with affordable Fund is being used to assist housing, what happens in a residents with rental and crisis? utility assistance in response April saw unemployment to the COVID-19 pandemic. rates in Rapid City skyrocket. Half of Elevate Rapid City’s Tom Johnson, People were without jobs. $150,000 contribution to the President and CEO of Elevate Rapid City Bills were not slowing down. Rapid City Strategic Housing Something needed to be Trust Fund is designated for done. With people concerned about work, health immediate housing-related needs resulting from the and safety, they should not also have to worry about COVID-19 pandemic. facing eviction. Short-term uses of the trust fund, which is housed This is why Elevate Rapid City made a major at the Black Hills Area Community Foundation, contribution to the Affording Housing Initiative by include rental retention and economic assistance. committing $150,000 to the Rapid City Strategic “Short-term, this Strategic Housing Trust Fund can Housing Trust Fund at the Black Hills Area help alleviate some of the challenges homeowners Community Foundation. and renters are facing with the COVID-19 crisis,” “The Strategic Housing Trust Fund is the result Elevate Rapid City President and CEO Tom Johnson of the collective impact work that has been ongoing said. “Rent and homelessness mitigation is a critical over the past few years in Rapid City, working to first step.”
Without a quality and affordable place to live, you can’t keep a workforce, and you can’t raise incomes.”
8
E L E VAT E R A P I D C IT Y AUGUST 2020
