SD HB1178

Establishes a legal framework for shared equity agreements where an investor-owner contributes up to 30% toward an occupant-owner's down payment and monthly mortgage payments in exchange for an equity stake in the home

Eligible homes must be single-family residences used as primary residences that comply with building codes; manufactured and mobile homes are excluded

Agreement terms cannot exceed 15 years but may be renewed for successive 15-year periods; occupant-owners retain title, exclusive possession, and responsibility for all taxes, insurance, maintenance, and repairs

Upon termination, the investor-owner receives the greater of their contribution percentage multiplied by appraised value, or their original contribution plus interest at 1% above the mortgage rate; investors bear no loss if home value declines

Agreements must be recorded with the county register of deeds, cannot contain prepayment penalties, and participating occupant-owners are prohibited from using public housing funds to finance the eligible home