A Senate panel is moving quickly to create a fund that will provide low-interest loans and grants for housing infrastructure projects.
Proponents hope the fund will help spur infrastructure development for workforce housing in rural parts of the state.
Lawmakers hoped to get the $200 million dollars out the door last session. $150 million comes from the state. $50 million from federal COVID relief money.
The Senate passed the bill unanimously, but it kept failing in the House. It finally made it to the governor’s desk where she signed it into law, but the money went unspent.
The money was placed into a fund that pays for low-income and affordable housing projects.
“So the question came up—when we placed all of the money in there—will all of the infrastructure projects only be used for low-income and affordable housing—this money for infrastructure?” said Representative Roger Chase.
The new bill takes the same money and places it into a different fund.
“So, the bill clarifies we’re setting up a whole new housing infrastructure fund under South Dakota Housing to where the money will be administered from that fund," Chase said.
He is the House sponsor of the bill. Fifty percent of the money will go toward housing grants, the other half into low-interest loans. A majority of the dollars will go toward housing projects in the rural part of the state.
The Republican from Huron says the change will help avoid issues down the road.
“As much as it was frustrating to see it not being utilized this last construction season, we want to make sure this is done correctly," he added.
Lawmakers hope to have the Senate bill on the governor’s desk by the end of next week. The bill has an emergency clause, which means once signed it will go into effect immediately.
