An Act to establish a manufactured housing downpayment assistance program.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 11-15-6 be AMENDED:

11-15-6. The authority shall promulgate rules, pursuant to chapter 1-26, specifying the criteria and process for the application, approval, and disbursement of:

(1) Loans and grants provided in accordance with §§ 11-15-1 to 11-15-5, inclusive, and § 11-15-7; and

(2) Loans provided in accordance with § 11-15-8; and

(3) Loans provided in accordance with section 2 of this Act.

Section 2. That a NEW SECTION be added to chapter 11-15:

The authority shall administer a manufactured housing downpayment assistance program, as a revolving loan fund, to assist eligible applicants with purchasing manufactured housing. Up to five million dollars from the South Dakota housing infrastructure fund may be loaned, on a revolving basis, for the purpose of this section.

The authority may provide a loan for downpayment assistance, not exceeding ten thousand dollars, to each eligible applicant. An applicant is eligible for a loan under this section if:

(1) The applicant has a household income not exceeding one hundred twenty percent of the state area median income; and

(2) The applicant uses the loan to make a downpayment on the purchase of a manufactured home, as defined in § 34-34A-1.1, which:

(a) Is located in this state;

(b) Complies with all applicable provisions of the Manufactured Home Construction and Safety Standards, 24 C.F.R. Part 3280 (January 1, 2026); and

(c) Complies with all applicable zoning requirements for a single-family residence, as provided in state and local law.

Any loan provided under this section must be secured by a second lien on the home, at an interest rate of zero percent, which is due upon the sale of the home or satisfaction of the first lien securing the home.

All moneys received by the authority in repayment of a loan issued pursuant to this section must be deposited in the South Dakota housing infrastructure fund and used for making new loans pursuant to this section.