Aberdeen City Council approves TIF 44 for affordable housing development and budget supplements

The Aberdeen City Council convened on April 21, 2025, to address several key financial and developmental issues impacting the community. The meeting highlighted the council's ongoing efforts to manage city funds effectively and promote affordable housing initiatives.

One of the primary discussions centered around the transfer of funds within the city's debt service fund for Tax Increment Financing (TIF) 39. The council approved a motion to move cash from the project fund to the debt service fund, ensuring that the necessary funds are available to cover incurred debts. This financial maneuver reflects the city's commitment to maintaining fiscal responsibility while managing its various funds.

Additionally, the council conducted a first reading of an ordinance to supplement the 2025 budget specifically for parks, recreation, and forestry activities. This ordinance aims to account for donations and grants received for these activities, further emphasizing the importance of community engagement and support for local recreational initiatives.

A significant topic of discussion was the approval of a resolution to create an affordable housing TIF, designated as TIF 44. This initiative, proposed by Homes Are Possible, Inc., aims to finance approximately $544,883 in public infrastructure improvements for an affordable housing development consisting of 11 homes. The project is designed to ensure that the selling price of each new home remains within the limits set by the South Dakota Housing Development Authority, thereby addressing the pressing need for affordable housing in the area. The council's support for this TIF reflects a broader strategy to combat housing shortages and promote sustainable community growth.

The council also addressed a property tax abatement due to an error in property valuation, which was unanimously approved. This action demonstrates the council's responsiveness to administrative errors and its commitment to fair taxation practices.

In addition to these financial matters, the council discussed a proposed rezone of several properties from agricultural to medium-density residential. This change is expected to facilitate the development of new housing, further contributing to the city's growth and addressing housing demands.

Overall, the April 21 meeting underscored the Aberdeen City Council's proactive approach to managing city finances and promoting affordable housing. As the council moves forward with these initiatives, the community can anticipate positive developments that aim to enhance the quality of life for its residents.