The bill establishes a manufactured housing downpayment assistance program in South Dakota, which will be administered by the authority as a revolving loan fund. It allows for the loaning of up to five million dollars from the South Dakota housing infrastructure fund to assist eligible applicants in purchasing manufactured housing. Each eligible applicant can receive a loan for downpayment assistance, not exceeding ten thousand dollars, provided they meet specific criteria, including having a household income not exceeding one hundred twenty percent of the state area median income and using the loan for a compliant manufactured or mobile home located in the state.

The bill amends existing law by adding new provisions regarding the application and approval process for loans and grants, specifically including loans for downpayment assistance as a new category. It also specifies that any loan provided under this program must be secured by a second lien on the home at a zero percent interest rate, with repayment due upon the sale of the home or satisfaction of the first lien. Additionally, all repayments from these loans will be deposited back into the South Dakota housing infrastructure fund to support future loans under this program.

Statutes affected:
Introduced, 01/22/2026: 11-15-6