HB 1289 modifies South Dakota's rules for creating tax increment financing (TIF) districts, which local governments use to fund development projects by capturing future tax growth in designated areas. The bill changes the requirement that a district's assessed value plus existing TIF districts cannot exceed 10.5% (previously 50%) of a political subdivision's total taxable property value. It also revises the criteria for designating a TIF district, requiring that either 25% of the district's area be blighted or 50% must stimulate economic development, and adds new consent rules: counties need municipal approval to create a TIF within city limits, and cities need county approval for TIFs spanning county areas. These changes directly affect counties and municipalities seeking to establish TIF districts for economic development projects.
SB 209 authorizes local governments in South Dakota (like counties or municipalities) to create nonprofit "land banks" to address abandoned, blighted, or vacant properties. These land banks, established through a local ordinance, can acquire, manage, and develop such properties to return them to productive use - such as through redevelopment, sale, or lease. Key mechanisms include allowing land banks to sue, borrow funds, handle foreclosures, collect rent, and partner with other entities. The bill provides a clear legal framework for creating these entities but does not mandate their use or specify which properties qualify beyond the defined categories.
HB 1261 provides a property tax credit for homeowners of single-family residences in South Dakota, reducing their 2027 property tax bills by up to $500 or the full tax amount owed, whichever is lower. The credit applies automatically to tax bills sent by county treasurers for owner-occupied homes. To fund the credit, $120 million is reallocated from the housing infrastructure fund ($60 million) and the general fund/budget reserve ($60 million each), with the state treasurer transferring funds to cover the revenue loss. This policy directly affects single-family homeowners paying property taxes in 2027, while the funding mechanism ensures no new state revenue is required.
HB 1319 updates tax rules for new or renovated properties in designated areas. It allows county commissioners to use a special formula for up to five years after construction to partially or fully exclude new property value from taxes, but this applies only to specific qualifying properties like new industrial buildings ($30k+ value), affordable housing (meeting income rent limits), or commercial renovations ($30k+ value). The law explicitly excludes properties within tax increment financing districts from this tax relief. After five years, these properties must be taxed at standard rates like other properties. This directly affects developers and property owners building qualifying structures in eligible zones.
HB 1186 requires South Dakota municipalities to obtain written approval from county commissioners before creating a tax increment financing district. This directly affects municipalities seeking to establish such districts and the counties where those districts would be located. The key provision mandates that county boards of commissioners must approve the district's creation through a formal resolution, either for the entire county or the portion within the county. The bill changes the process by adding county consent as a mandatory step, ensuring local county input before municipal tax district development begins.
HB 1231 clarifies documentation requirements for renters with disabilities who need assistance animals (including emotional support, service, or therapy animals) in rental housing. Landlords may only request documentation confirming the tenant’s disability and need for the animal, issued by a licensed health provider within the past year (unless the disability is obvious or permanent). The documentation must include the provider’s license details, be based on a personal assessment, and cannot be required if the disability or need is already apparent. This bill directly affects renters with disabilities and landlords, while exempting small owner-occupied buildings (4 units or fewer) and single-family homes sold without agents. Violating these rules by providing false documentation may lead to eviction or a $1,000 fee.
SB 204 revises loan criteria for the South Dakota Housing Infrastructure Fund. It changes the fund's distribution to allocate 50% of monies to housing infrastructure in municipalities with populations over 50,000 (previously 30%) and 50% to other areas (previously 70%). The bill also increases the maximum loan amount from one-third to one-half of a housing infrastructure project's total cost and allows up to 1% of the loan principal to cover administrative expenses. This directly affects municipalities, housing developers, and projects seeking infrastructure loans under the fund.
HB 1014 modifies a $25 surcharge that typically applies when a defendant responds to a landlord-tenant lawsuit (forcible entry and detainer action) in South Dakota circuit court. The bill specifically removes this fee requirement for cases involving: (1) government entities (state, county, city, school district), or (2) defendants receiving assistance benefits under Title 28. This change ensures these groups and individuals are exempt from the surcharge, streamlining access to court for vulnerable populations and public entities in housing disputes. The bill does not alter the underlying legal process but adjusts fee collection rules for specific parties.
HB 1178 establishes a legal framework for shared equity homeownership in South Dakota. It allows investors to contribute up to 30% of a home's purchase price toward a buyer's down payment and mortgage, in exchange for a shared ownership interest recorded with the county. The agreement requires the homebuyer (occupant-owner) to maintain a fixed-rate mortgage, cover all maintenance/taxes, and retain full title during the agreement's term (up to 15 years), with the option to buy out the investor early. Upon termination (e.g., mortgage maturity, home sale, or buyer buyout), the home is appraised to determine repayment to the investor based on current market value. This directly affects homebuyers seeking financial assistance and investors providing capital for eligible single-family residences.
HB 1113 establishes a downpayment assistance program for manufactured or mobile home buyers in South Dakota. The program provides zero-interest loans of up to $10,000 per applicant from a $5 million revolving fund in the South Dakota housing infrastructure fund. Eligibility requires household income below 120% of the state median income and purchasing a home meeting federal safety standards and local zoning requirements for single-family residences. Repayments return to the fund to support new loans, with loans secured by a second lien due upon home sale or repayment of the primary mortgage. This directly assists low-to-moderate income residents seeking to purchase qualifying manufactured or mobile homes.
