Housing (Affordable Housing)

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 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.