Agri Business LoansAvera Health and Rural Electric Economic Development Fund Announce Workforce Housing Development Financing Partnership
Category: Multi-Family Housing
SIOUX FALLS, S.D. – Avera Health and the Rural Electric Economic Development (REED) Fund Tuesday announced a new $10 million workforce housing development financing partnership. Avera has committed $2 million to the partnership and REED has committed an initial $4 million, with plans to grow the total fund to $10 million. The partnership was announced at a joint press conference on September 3.
“Avera is pleased to partner with the Rural Electric Economic Development Fund with this $2 million investment in workforce housing,” said Avera Health President and CEO Bob Sutton. “Avera is committed to our rural roots and the communities we serve. Workforce housing has become a growing concern in rural South Dakota over the past several years and we’re happy REED is addressing this issue”
The REED Fund is a nonprofit corporation created and operated by electric cooperatives that partners with commercial and other economic development lenders to provide financing and leverage private investment in more than 69 counties throughout South Dakota and Minnesota. Established in 1997, REED is governed by 26 member electric cooperatives and assists projects that promote community well-being and contribute to employment, business and wealth creation, as well as improve the infrastructure, services and economic base.
“REED’s member electric cooperatives are excited to launch this housing development partnership with Avera Health,” said REED Board President Ken Schlimgen. “We want to assist communities in developing housing that meets the needs of today’s workforce. A partnership with Avera will help this region begin to address the urgent need for quality workforce housing.”
Funds from the partnership will be used for lending in partnership with banks and other agencies to provide loans for housing development and housing infrastructure in Avera-served communities. Communities and developers can contact the REED Fund for more information on the application process.
“All business sectors including health care and electric cooperatives in rural areas are looking for highly-skilled staff,” said East River Electric Power Cooperative General Manager Tom Boyko. “It can be a real challenge to recruit workforce without quality housing options. We’re going to work on solving this critical issue.”
Avera Health Chief Human Resources Officer Kim Jensen, agreed, saying, “Recruiting and maintaining talent throughout the Avera Health organization can be a challenge at times due to the rural nature of our footprint. When we start getting into smaller, rural communities it is imperative that there is quality housing that is affordable for prospective employees.”
Since it was established, REED has invested more than $100 million dollars in the region through more than 338 loans. The REED Fund and partner lenders have combined to distribute more than $858 million dollars in economic investment, 9,400 jobs have been impacted, and 2.3 million square feet of facilities have been constructed or renovated.
Chris Studer, Chief Member and Public Relations Officer