Housing

SB 76 transfers unobligated funds from South Dakota's housing infrastructure fund to the revolving economic development fund. It authorizes the Board of Economic Development to provide up to $15 million in 0% interest loans to airports with scheduled air service located in metro areas with 125,000-275,000 residents (or over 275,000) as of the 2024 Census. Loans must be repaid over 20 years with the first payment due one year after funding, and must be fully funded by June 2030. The bill directly affects airports in designated metro areas seeking infrastructure improvements.

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 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.

This bill proposes a constitutional amendment that would prohibit South Dakota governments from using eminent domain to transfer private property to private companies or non-governmental entities solely for economic development or increased tax revenue. It would require any property transfer to serve a clear public purpose, such as infrastructure or public services, rather than benefiting private interests. The amendment would apply to all state and local government actions involving property takings and must be approved by voters at the next general election. If adopted, it would change how governments can acquire property for development projects.

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.