This bill authorizes the South Dakota housing authority to provide loans from the housing infrastructure fund specifically to school districts that are adjacent to federal military installations. The loans are intended for the construction or expansion of school buildings and will be offered at a zero percent interest rate without requiring collateral. The maximum loan amount is capped at fifteen million dollars, with repayment structured over twenty years through annual payments, starting one year after the loan is funded. Additionally, the bill stipulates that thirty percent of the loan funds must come from resources allocated for municipalities with populations over fifty thousand, while the remaining seventy percent will be sourced from funds available in other areas of the state.

The bill also amends existing law by adding a new section that outlines the criteria and process for loan applications and approvals, as well as specifying that any loans issued under this new provision are exempt from certain existing regulations. Furthermore, it mandates that all repayments from these loans be reinvested into the housing infrastructure fund for future lending purposes. The authority is required to approve these loans during public meetings and must ensure that they are issued before June 30, 2029.

Statutes affected:
House Engrossed, 03/06/2025: 11-15-6
Enrolled, 03/12/2025: 11-15-6