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.

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.

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.