Housing (Mortgages)

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.