Housing

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 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 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.

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.