March 8, 2022

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South Dakota Chamber Of Commerce - Capitol-ism E-Newsletter
March 8, 2022


What a mess – clean up in Aisle 1033


Last week, Capitol-ism focused on the $200 million that is or, as of this writing more accurately, “was” going to assist with the development of workforce housing.  In a basic review (that will be too basic and therefore flawed) this was what was supposed to happen last week.

$200 million was going to be invested in helping housing via grants and loans for housing infrastructure; which is a term government people use for sewer/water/power/streets/curbs and sidewalks.

Half of the funds ($100 million) were in SB 53 which involved grants from the Governor’s Office of Economic Development to be used to leverage more money from cities and developers for a total impact of $300 million.

The other half (again, $100 million) was in SB 65 and was to be put in the South Dakota Housing Development Authority and used for revolving loans for infrastructure (see explanation above) so that the funds would be available for decades into the future.  There were rules put on this money explaining which towns could use which funds but that is just clutter at this point.  Keep reading and you’ll know why.

Last week things got interesting.  The kind of interesting that isn’t good if you want these programs to work.  The House of Representatives finally voted on SB 53 (the first $100 million) and the bill failed to get the 2/3rds vote (or 47 of 70 votes) needed to pass.  It was then “reconsidered” and amended and then it did get enough votes to pass!! 

The next step for SB 53 will be for the Senate to vote on agreeing with the amendments made in the House; or deciding to not agree (not concur), in which case the bill will be sent to a conference committee where three Senators and three Representatives will try to get the bill into the same language for both the Senate and House to vote to approve and send it to the Governor.  If they can’t agree, then the bill dies an inglorious death.

That was the part that went well.

The second $100 million that was ensconced in SB 65 didn’t find the success that SB 53 found.  This was half of the $200 million that was intended for the South Dakota Housing Development Authority to be used for infrastructure revolving loans.  It should be noted here that the Housing Authority has been around for many years and has a strong record of helping low-income individuals and families find housing through several programs of the federal government and state programs like first time home buyer programs. 

SB 65, as intended, would have given this office a whopping amount of money and a new mission to develop housing for working people and families that cannot afford the market priced housing available today.

SB 65 was amended several times but failed to pass the House of Representatives on three different attempts.  Needing the same 2/3rds (47 votes) as the previous bill it could only garner 46 votes each time the roll call was taken.

By all reason and any bit of devious plotting – SB 65 is dead.  Period.

What now?

Over in the Senate was HB 1033, which had passed the House and was in the Senate for a vote.  Monday afternoon (3/07), the proponents of both SB 53 and the deceased SB 65 took the bill HB 1033 and “hog-housed” it.  A quick reminder that a bill that is hog-housed is gutted of all its language and new language is put in the bill.  It becomes an entirely new bill.  It’s sort of like telling a teenager to change their clothes or they aren’t leaving the house . . . only with HB 1033 it actually worked.

The new bill.  Now HB 1033 looks like an omnibus bill and a combination of both SB 53 and SB 65 . . . but way different. 

The new version of Workforce Housing Solution (HB 1033) puts all of the money into the South Dakota Housing Development Authority and none of the funds into the Governor’s Office of Economic Development (GOED).  HB 1033 requires $100 million dollars to be used for housing infrastructure grants and the remaining $100 million to be used for revolving loan proceeds.

The money for grants cannot be more than one third of any project but the remaining funds are not prescribed as they were under SB 53.  All of the funds will be subject to an allocation that reserves 30% of the funds ($60 million) for Rapid City and Sioux Falls and 70% ($140 million) for all other cities and towns.  In addition, it says that projects in Rapid City and Sioux Falls can use only one program.  Projects in those cities can use grants for infrastructure OR revolving loans - not both.  All other cities are allowed to combine programs.

Support Needed.

The South Dakota Chamber of Commerce and Industry strongly supports HB 1033 which passed the Senate right after it was amended.

Please send emails, call or text any member of the House of Representatives that you know, asking them to concur with the amendments to HB 1033.   

Visit https:/ or click here for a roster of the South Dakota House of Representatives.   

Thank you for your support of the South Dakota Chamber of Commerce & Industry.

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