PIERRE, S.D. (KELO) — Governor Kristi Noem on Friday said she has signed the $200 million bill for housing infrastructure subsidies into law but also sent state legislators a letter suggesting some revisions.
That could be two pieces of new legislation for lawmakers to work on Monday when they return to the South Dakota Capitol for the last scheduled day of their 2022 regular session.
The Joint Committee on Appropriations already had planned to address some additional federal funding for nursing homes that legislators learned was available after they wrapped up the main run two weeks ago.
Lawmakers also will have three more vetoes to either sustain or attempt to override. And a House committee will meet afterward Monday to decide whether to recommend impeachment of state Attorney General Jason Ravnsborg.
Noem said the housing infrastructure legislation, HB 1033, put $100 million for grants and $100 million for low-interest loans into the housing opportunity fund operated by the South Dakota Housing Development Authority. She said that fund is available however only to households making no more than 115% of the local community’s median income.
“Housing infrastructure as described in section 5 of House Bill 1033 is not targeted to a family or individual, so this apparent defect in the bill creates uncertainty because of the statutorily required ‘targeting’ under current South Dakota law. That uncertainty creates risk for the SDHDA and those seeking grants or loans to consider, and that risk may result in red tape or delays,” her letter said.
Noem also pointed out that the bill is designed to subsidize housing infrastructure but a corresponding change wasn’t made in current state law. And, she said, the housing authority will have to access the $50 million of federal ARPA funds as a sub-recipient.
The legislation takes effect on June 27, 2022.
“The Legislature may correct these drafting oversights, and I am hopeful that the Legislature will be able to deliver the needed statutory clarification before grants and loans will be made,” Noem’s letter said.