Abbott House

A regional foster care provider plans to build two new youth group homes in Rapid City pending receipt of approximately $140,000 in Community Development Block Grant funding.

The Abbott House is one of three entities that have been tentatively awarded a combined $336,575 in CDBG monies. Several projects recommended for funding by the City's Investment Committee were unanimously approved Wednesday during a Legal and Finance Committee meeting.

The Rapid City Council will hold a final vote on the recommendation on Aug. 19 following a 30-day public comment period.

“It’s good to hear all of these good things that are starting to take place throughout the city,” Councilman Ritchie Nordstrom said before the measure passed out of the committee.

A total of 14 local entities applied for the funding reallocation, which city CDBG Division Manager Michelle Schuelke said was left over from older projects that never came to fruition. Funds are administered annually through a long-standing U.S. Department of Housing and Urban Development program for local governments to disburse.

Money is then given to nonprofits or private entities that plan on developing affordable housing units.

JB Holdings LLC, which according to state records is based in Rapid City, stands to receive approximately $136,000, the second highest allocation approved Wednesday. The company plans to bring a triplex at 614 E. Watertown St. up to code and replace several modular homes at that same address, according to city documents.

Also bundled in the recommendation that the committee approved was a request from Feeding South Dakota, a statewide food assistance organization, for $58,700 to purchase and install a backup generator at its North Creek Drive location in Rapid City.

If awarded its allocation, Abbott House will have raised approximately $1.95 million of the $3 million needed to build and furnish the new group homes, Assistant Development Director Helen Usera said. The group operates two "therapy homes" in Rapid City for children and young adults ages seven to 23 who come from abusive situations.

Specific addresses cannot be released as many of the youth under Abbott House's care are in the custody of the state Department of Social Services, although Usera said one of the new homes will be located by East Middle School and the other by Rural America Initiative's Child Development Center.

Each will have up to six youths living in a family setting and up to four young adults in adjoining apartments, city documents say. Usera said that construction on both projects is expected to begin in September.

Applications for the next round of general CDBG allocations open Oct.1, Schuelke said. She said that Rapid City's apportionment could total $470,000, roughly $20,000 more than last year's.

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This story has been updated to correct the date of the Rapid City Council meeting.

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