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.

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.

SB 4 revises South Dakota's rules for security deposits in rental housing, directly affecting landlords and tenants. It requires landlords to return full deposits within 21 days of lease end or provide a written explanation for withholding, limited to unpaid rent, damages beyond normal wear and tear, or costs to restore the property. Landlords must also give tenants an itemized accounting of withheld amounts within 45 days of request. Failure to comply results in forfeiting all rights to withhold the deposit and potential $200 punitive damages for bad-faith retention.