This bill establishes provisions for homeownership through shared equity agreements in South Dakota. It defines key terms such as "contribution," "eligible home," "investor-owner," "occupant-owner," and "shared equity agreement." The bill outlines the requirements for entering into a shared equity agreement, including the necessity for both parties to execute and record the agreement with the county register of deeds. The agreement must specify details such as the contribution amount, the term of the agreement, and the responsibilities of the occupant-owner regarding the home.

Additionally, the bill stipulates that a shared equity agreement cannot run with the land, impose prepayment penalties, or restrict the occupant-owner's use of the home. It mandates that the occupant-owner must secure a traditional mortgage for the eligible home and outlines the conditions under which the agreement may terminate. Upon termination, the home must be appraised, and the investor-owner is entitled to payment based on either the appraised value or the actual contribution made, plus interest. The bill also clarifies that the shared equity agreement creates a private co-ownership arrangement, preventing the occupant-owner from using public housing funds for the purchase.