PEDCO Housing Acquisition and Rehabilitation Loan Program


  • Short-term, zero interest equity financing for the acquisition and rehabilitation of existing single-family homes in Pierre to be sold or rented
  • PEDCO funds are provided through the SDHDA Housing Opportunity Fund and include requirements and restrictions consistent with HOF/HUD terms

Eligible Borrowers

  • Developers and individuals with a proven development history seeking to purchase homes for rehabilitation and subsequent resale or rent within 12 months of acquisition

Eligible Uses of Funds

  • Up to 20% of total purchase price


  • PEDCO may fund up to 20% of the home purchase cost
  • 0% interest loan for up to 12 months but no longer than 6 months after rehab completion
  • A moderate to substantial rehabilitation plan, schedule and cost estimates are required before financing
  • Bank or credit union must participate in a project with a minimum of 80%


  • Developer Fee limited to 10% of total project and paying labor
  • Builder’s Profit is limited to 6 % of total project
  • Qualified buyers/renters – households with a maximum income at or below 115% of Hughes County Area Median Income
  • Rental rate restrictions must remain in place must be maintained for maximum of 5 years
  • Typical federal housing discrimination rules apply

The Process

  • Developer applies to local lender for project approval. Lenders will contact PEDCO to participate and provide approval from bank to PEDCO


  • Second on assets that bank or credit union take as collateral


  • One percent of PEDCO loan amount, $150 documentation fee and any other 3rd party fees associated with acquisition, construction and rehabilitation

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