GROW South Dakota Statewide Dakota Dream Savings Fund
Tuesday, December 09, 2014
With new federal funding from Assets for Independence, South Dakota’s Dakota Dream Savings Fund, a matched savings program is revived across the state. Administered by GROW South Dakota, in partnership with Interlakes Community Action Partnership, Rural Office of Community Services, and Western South Dakota Community Action Partnership, the statewide Dakota Dream Savings Fund matches individual savings to create an opportunity for low- to moderate-income individuals to build wealth through home ownership.
Assets for Independence, a division of the U.S. Administration for Children and Families, awarded federal funds to South Dakota’s statewide program in the amount of $66,189. These federal funds will be matched by the South Dakota Housing Opportunity Fund. “Each participant has the opportunity to receive a $3:$1 match of their savings. The Housing Opportunity Fund will match the savings with $2 and $1 will be matched from Assets for Independence,” said Maureen Nelson, South Dakota’s Statewide Program Coordinator. “The South Dakota Housing Opportunity Fund’s non-federal matching funds were crucial in leveraging the federal funds for our state.”
Ultimately, the Dakota Dream Savings Fund enables participants to acquire their first home after saving for an extended period of time and receiving financial education and homebuyer counseling. Participants are required to save for at least six months, although most save money over the course of a few years. At the end of the program, every dollar deposited into the savings account by the participant is matched by a combination of federal and nonfederal funds at a rate of 3:1. Dakota Dream Savings Fund participants are able to save up to $2,000 for a match of $6,000. This means if the maximum amount is saved, the participant has $8,000 to use toward the down payment of their first home.
“The Dakota Dream Savings Fund program has notable successes since its inception in 2008,” said Marcia Erickson, GROW South Dakota CEO. “We are confident this new federal funding matched by the South Dakota Housing Opportunity Fund will allow many hard working South Dakotans an opportunity to create lasting assets through homeownership.”
For more information about GROW South Dakota’s housing and business development programs and services, please visit our website at www.growsd.org or call (605) 698-7654. GROW SOUTH DAKOTA is an Equal Opportunity Lender, Provider, and Employer.