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establish a manufactured housing downpayment assistance program.

South Dakota will create a new manufactured housing down payment assistance program that provides loans up to $10,000 to help eligible buyers purchase manufactured homes in the state. The program will use up to $5 million from the state housing infrastructure fund as a revolving loan fund, and applicants must have household income at or below 120% of the state area median income. The bill also updates state rules to include this new loan program alongside existing housing assistance programs.

establish provisions for homeownership through shared equity agreements.

South Dakota homebuyers will be able to enter into "shared equity agreements" where an investor contributes money toward their down payment and mortgage in exchange for a share of the home's ownership. The bill defines the rules for these arrangements, including that they only apply to single-family primary residences and require a written agreement recorded with the county. This creates a new legal framework in state law for this form of shared homeownership that didn't previously exist.

revise certain criteria for loans from the South Dakota housing infrastructure fund.

SB 204 expands the types of infrastructure projects eligible for loans from South Dakota's housing infrastructure fund to include land acquisition and site preparation work needed to support new housing developments. The bill also allows the Housing Development Authority to use up to one percent of loan amounts to cover its administrative costs for managing these loans.

authorize the creation of land banks.

South Dakota will allow local governments—counties, cities, school districts, and other tax-levying entities—to create nonprofit organizations called land banks to buy, manage, and rehabilitate abandoned, blighted, vacant, or tax-delinquent properties in their areas. Each land bank will be governed by a board of 5-11 members appointed through a process set by the local government that creates it. This is a new tool to help communities revitalize neglected properties and return them to productive use.

authorize loans from the South Dakota housing infrastructure fund for airport infrastructure.

South Dakota's housing infrastructure fund can now make loans to airports in cities with populations of at least 125,000 to improve or maintain airport facilities, with each loan capped at $15 million and charged at 2% annual interest. Repayments go back into the housing fund to support additional airport loans. This expands the fund's purpose beyond housing to include airport infrastructure development.

modify the blight requirements for purposes of creating a tax increment financing district.

This bill lowers the threshold for creating a tax increment financing district by reducing the required blighted area from 25% to 50% of the district's real property. Additionally, it allows districts to qualify if 50% of the property will stimulate economic development, even if less of the district is currently blighted. These changes make it easier for counties and municipalities to establish these special financing districts to fund local improvements.