The over-arching impact of Heartland Heights is to improve access to affordable housing in our community. In addition, this project is the first of its kind undertaken by a non-profit in western South Dakota as a way of addressing the lack of affordable housing in our communities.
Heartland Heights consists of two buildings that offer 82 affordable rental housing units to Rapid City, with a total capacity of 370 residents. Eligibility is open to local families with incomes at 30-60% of AMI.
Heartland Heights was created through a partnership between The Club for Boys and Lloyd Companies, a developer, contractor, and property management company. Heartland Heights is located on 427 Degreest Drive, Rapid City.Heartland Heights is possible thanks to tax credits awarded by the South Dakota Housing Development Authority. The Club is critical to the partnership because, as a non-profit, the Club is able to secure tax credits which are converted to cash and used toward construction costs, that helps make the project realistic for a company such as Lloyds.
Heartland Heights was developed as a way of addressing the need for affordable Rapid City housing.The Rapid City Housing Market Study of July 2022 (published by the RC Strategic Housing Coalition) estimated that a total of 2,500 new rental units will be needed over the next 10 years for those with incomes below the AMI; 458 new rental units will be needed for those with 31-50% AMI. Therefore, the Club has partnered with Lloyd Companies on a housing project known as Heartland Heights which is near two schools served by the Club. The housing is equal opportunity and open to all in the community; Club families benefit as they are kept informed about rental opportunities at Heartland Heights.
Legally, the project belongs to Heartland Heights, LLC, which is a limited liability company with one owner, The Club for Boys. Lloyd Companies was the developer/constructor and the apartment building is managed by Lloyd Property Management. Because of their expertise, Lloyd Companies will remain involved in the project for 15 years.
Heartland Heights I, the first building in the complex, was completed in May 2022 and is occupied with a waiting list. Heartland Heights II is the second 41-unit apartment building directly across the parking lot. The apartments are 1-3 bedrooms with washing machines and dryers included in each unit. Currently, the rental prices range from $427-$795 for a 1-bedroom, $513-$950 for a 2-bedroom and $790-$1100 for a 3-bedroom. All these prices include utilities and the actual rent is based on income.
Eventually the Club will see a revenue stream from Heartland Heights but when that may begin is unknown at this point. By agreement, a certain amount is automatically set aside from the rental income for property management, insurance, mortgage payments and upkeep of the facility. After those obligations are met, an amount will be generated for the Club. In the long run, this project promotes the Club’s financial security.
The Club is the first non-profit in western South Dakota to enter an affordable housing project of this type. This experience should encourage and make it easier for other non-profits to go forward with such projects. Ultimately, our families and our community will be stronger for the effort.
320 N 4th St.Rapid City, SD 57701
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