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Comment

The FHLB AHP has been key to addressing the unique home improvement needs of rural and financially vulnerable homeowners through GROW South Dakota’s work in eastern South Dakota. As a result of our partnership with the FHLB Des Moines, IA, over $7.37 million has been invested in local South Dakota communities assisting over 1,100 homeowners. Currently, GROW South Dakota has more than 160 requests on a waiting list pending home rehabilitation.

By law, each FHLB must establish an AHP and contribute 10 percent of its earnings to its AHP. However, with the dire need for home preservation due to aging housing stock, more funding should be allocated to this program beyond the 10% threshold. Continued access to AHP is critical as it is an invaluable resource to the homeowners that need it most. Home is the foundation for vulnerable households. The AHP helps low-income individuals stay in their homes as is demonstrated in the following life-changing event from a homeowner who did not have an adequate heating system or plumbing.

GROW South Dakota received a call from a senior resident in need of assistance with heating her house. When the weatherization team went to her home, they discovered energy inefficiencies as well as safety concerns. The heating unit was not adequately ventilated, which could cause carbon monoxide poisoning. The windows were leaking, creating drafting in the house, and there was no insulation in the attic, walls, or under the floor making the house very cold. Most significantly, there was no indoor bathroom. The homeowner had been using an outhouse as a restroom and would go to friends and neighbors when she needed to shower.

GROW South Dakota insulated the house and provided new storm windows. Our organization also replaced the old unvented space heater with a vented space heater and installed an exhaust fan above the stove. Besides the lifesaving installment of a new heating unit, the most significant improvement, with assistance from the FHLB AHP funding, was an addition to the house. This senior citizen now has an indoor bathroom with a shower, sink, toilet, and water hookups for a washing machine.

She stated, “Because of this program, I no longer have to worry about C02 poisoning. I have adequate heat and no wind blowing through the windows and doors. For the first time, I don’t have to walk to the outhouse and worry about falling. I’m able to take a shower without going to someone else’s house. To say what I have received from the program has been life-changing would be a complete understatement.”

The FHLB has made a significant difference in GROW South Dakota’s work with home repairs, but there are many more needs in our communities. We recommend the 10 percent AHP contribution earnings be increased. This funding helps secure needed affordable and safe housing while creating and supporting healthy communities.