State House sends $200 million housing bill to Governor Noem’s desk
PIERRE, S.D. – The South Dakota House of Representatives voted on Monday to pass Senate Bill 41, which will release $200 million in state and federal money for housing infrastructure.
Senate Bill 41 passed 54 to 16 after several attempts to amend the bill and several days of deferrals.
$150 million would come from last year’s budget surplus, while $50 million comes from federal funding. $100 million of those state funds would be used to create a revolving housing loan fund.
The bill would give rule-making authority to the South Dakota Housing Authority, clarifying an unclear portion of a previous bill that prevented the Housing Authority from disbursing the funds in 2022.
Supporters say there is a housing crisis and that the money is needed by big and small communities, particularly for workers.
Advocates also said the bill had the support of Gov. Noem, the South Dakota Home Builders Association, the South Dakota Bankers Association, and several other lobbying groups representing counties and private businesses.
They argued the revolving loan fund and grants would boost economic development across the state.
Opponents said South Dakota already has the best housing construction record in the country, so the money is unnecessary.
They also said that all South Dakotans have paid into the fund, but only a few people or businesses–including those from out of state–would benefit.
The bill had an emergency clause and needed a two-thirds vote of the chamber.
The measure now goes to Governor Kristi Noem for her signature.