Housing (Homeownership)

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 1178 establishes a legal framework for shared equity homeownership in South Dakota. It allows investors to contribute up to 30% of a home's purchase price toward a buyer's down payment and mortgage, in exchange for a shared ownership interest recorded with the county. The agreement requires the homebuyer (occupant-owner) to maintain a fixed-rate mortgage, cover all maintenance/taxes, and retain full title during the agreement's term (up to 15 years), with the option to buy out the investor early. Upon termination (e.g., mortgage maturity, home sale, or buyer buyout), the home is appraised to determine repayment to the investor based on current market value. This directly affects homebuyers seeking financial assistance and investors providing capital for eligible single-family residences.

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.

HB 1036 would limit annual property tax increases for South Dakota homeowners of single-family residences and nonagricultural property to a maximum of 3% per year. This affects most residential homeowners and nonfarm property owners by capping how much their assessed tax value can rise annually, unless specific exceptions apply. The cap does not apply if ownership changes, the property's use changes, or major additions (increasing value over 40%) are made, but minor renovations or expansions under 40% value increase are excluded. This policy aims to provide stability in property tax assessments for qualifying properties.