Senate advances bill increasing housing‑infrastructure loan participation for rural projects

Pierre — The Senate Commerce and Energy Committee voted to advance Senate Bill 204, a measure that increases certain loan participation limits in the South Dakota Housing Infrastructure Fund to make infrastructure financing more usable for municipalities and smaller developers.

Sponsor Senator Casey Crabtree said the bill raises the allowable share from 30% to 50% in targeted circumstances, reducing private financing hurdles in rural settings and driving down per‑lot infrastructure costs. Proponents including municipal leaders, housing coalitions, the Home Builders Association and economic development groups told the committee the tweak will unlock more single‑family lots and make projects viable for smaller communities.

Julie Johnson (Homes for South Dakota) and other witnesses emphasized the housing fund’s success in creating lots and units across the state, and they asked the Senate to preserve the fund’s corpus while increasing usability. Committee members asked technical questions about administrative capacity and existing underwriting standards; proponents said the housing authority is prepared to manage expanded use.

The committee adopted a due‑pass recommendation (7 yeas, 1 nay). The bill will go to the Senate floor for further consideration.