Chapter 60

(Senate Bill 61)

An Act to revise a cross reference regarding the South Dakota Housing Development Authority's investment agreement.

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

Section 1. That § 11-11-179 be AMENDED.

11-11-179. Retirement and redemption of investments in sponsor of multifamily units and day‑care facilities.

The authority shall have the power, in the supervision of housing sponsors of multifamily residential housing units and day‑care facilities and their real and personal property, to regulate the retirement of any capital investment or the redemption of stock where any such retirement or redemption when added to any dividend or other distribution shall exceed in any one fiscal year such percentage as may be determined by rules and regulations of the authority or as may be specified in the agreement required by § 11-11-156 between the authority and the housing sponsor of the original face amount of any investment or equity in any housing sponsor. Projects whose rents or income limits applicable to project residents are established, subsidized or regulated by federal law, or whose loans are insured or guaranteed by the federal government shall be subject to an agreement between the authority and the housing sponsor which will subject said sponsor and its principals or stockholders, if any, to those limitations established by federal law, or such lower limitation as shall be prescribed by the authority, in regulating the retirement of any capital investment or the redemption of stock of the original face amount of any investment or equity in any housing sponsor.

Signed February 22, 2021