Housing & Property

Changes the rules for getting housing loans from the state.

This bill revises the South Dakota housing infrastructure fund by: (1) expanding the definition of 'public infrastructure' to include 'necessary site work' for housing projects, (2) changing the distribution formula from 30%/70% to 50%/50% between large municipalities (50,000+ population) and other areas, (3) increasing the maximum loan amount from one-third to one-half of total project costs, and (4) prohibiting both grants and loans for the same infrastructure project in large municipalities.

Limits when local governments can require permits for home improvements.

This bill prohibits counties, municipalities, and townships from requiring building permits for: (1) repair or substantially similar replacement of exterior parts of owner-occupied residential structures including doors, downspouts, fencing, gutters, roofing materials, siding, and windows; and (2) interior alterations, improvements, or renovations that do not affect air conditioning, electric, heating, plumbing, ventilation systems requiring load-bearing modifications, foundations, load-bearing walls, roof frames, or support beams.

Restricts foreign entities from owning land in South Dakota.

This bill creates a new chapter restricting ownership of real property within 10 miles of military installations by 'prohibited entities' (as defined in section 43-2A-1). The bill establishes mandatory divestment periods (2-3 years), requires affidavits for property transfers in restricted zones, grants the attorney general enforcement authority including property forfeiture, and provides liability protections for non-prohibited entities including title insurance companies and real estate professionals who lack actual knowledge of violations.

Requires counties to notify townships about zoning permit applications and appeals.

This bill creates new mandatory notice and hearing requirements for conditional use permits that will substantially burden public infrastructure or rights-of-way. Applicants must provide 45-day advance notice by certified mail before applying. Within 30 days, authorities must schedule a public hearing to determine if haul road agreements or other conditions are necessary. Authorities must provide written decisions within 14 days after the hearing stating what conditions must be met before permit approval. The bill defines haul road agreements as contracts designating specific public roads for heavy material transport to construction or industrial sites.

Clarifies when government can inspect private property for potential public projects.

This bill amends eminent domain property examination procedures. It restricts persons with eminent domain authority to conduct only examinations (not surveys) when property owners deny permission, removes the $500 compensation payment requirement for common carriers, defines examination as minimally invasive inspection with only minor soil disturbances, and maintains requirements for 30-day written notice, damage payment/security, and allows property owners to challenge the examination in circuit court.

Creates a program to help people with down payments for manufactured homes.

This bill establishes a manufactured housing downpayment assistance program administered by the housing authority. The program provides zero-percent interest loans up to $10,000 to eligible applicants with household income not exceeding 120% of state area median income for downpayments on manufactured or mobile homes in South Dakota. Loans are secured by a second lien on the home and are due upon sale or satisfaction of the first lien. Up to $5 million from the South Dakota housing infrastructure fund may be used for this revolving loan program.

Updates building code references to the 2024 standards.

This bill updates building code references from the 2021 to 2024 editions of the International Building Code, International Property Maintenance Code, and International Residential Code. It changes the effective date for buildings that must comply with these standards from July 1, 2021 to July 1, 2026, giving more time for compliance. The bill maintains existing exemptions for residential structures, mobile/manufactured homes, farmsteads, and specialty resort establishments.

Clarifies how to appeal county commission decisions.

This bill amends the procedures for county commissioner decisions on zoning amendments, changes, modifications, repeals, or supplements. It clarifies that when commissioners adopt a requested action, they must publish notice of the decision, the decision takes effect on the twentieth day after publication unless referendum is invoked, and appeal provisions apply. When commissioners reject a requested action, different statutory appeal provisions (sections 7-8-27 to 7-8-32) apply to the rejection decision.

Clarifies paperwork needed for service animals in rentals.

This bill clarifies documentation requirements for assistance animals in rental dwelling units by: (1) expanding the definition from just 'service animal' to 'assistance animal' including emotional support, service, and therapy animals; (2) requiring documentation to be issued within one year unless the disability is permanent/ongoing; (3) mandating documentation come from licensed providers with personal knowledge through provider-patient relationships who conducted individualized assessments; (4) requiring official letterhead with contact info and license numbers; (5) allowing telehealth documentation with provider attestation; (6) permitting landlords to verify documentation authenticity; and (7) creating exemptions for owner-occupied buildings with 4 or fewer units, single-family homes (with conditions), and situations where animals pose direct threats.

Adjusts restrictions on using certain public lands.

This bill modifies procedures for dealing with restricted land grants when circumstances change. It expands court authority when land granted for religious, educational, charitable, benevolent, or public purposes becomes impossible or impractical to use for the original purpose. The bill adds a new option allowing courts to modify restrictions on the land use rather than requiring sale, and updates the language around reinvestment of sale proceeds to be more flexible.

Changes rules for how landlords handle security deposits.

This bill revises landlord-tenant security deposit procedures by: (1) extending the deadline for landlords to return deposits or provide written statements from two weeks to twenty-one days after tenancy termination, (2) reorganizing the language describing what landlords may withhold deposits for (unpaid rent and other funds due, plus restoring premises condition excluding normal wear and tear), and (3) clarifying that bad faith retention of deposits or failure to provide required written statements subjects landlords to punitive damages not exceeding $200.