The South Dakota House on Tuesday (Feb. 24, 2026) rejected a proposal to create a state-backed, zero-interest downpayment loan program for manufactured homes — then rejected it again hours later after bringing it back on reconsideration.
House Bill 1113 failed earlier in the day, then returned to the floor later after Rep. Will Mortenson, R-Ft. Pierre, moved to reconsider the vote.
The House took up the bill again for renewed debate and a second final-passage vote. HB 1113 failed again, 45-21, with four excused, short of the two-thirds margin required because the bill included an appropriation.
Supporters said the proposal would help working families who can make monthly payments but cannot clear a downpayment hurdle. They argued the fund would recycle money as loans are repaid. Opponents said buyers should save for downpayments without taxpayer help and questioned whether the state should subsidize purchases.
During the reconsidered debate, Rep. Mike Weisgram, R-Fort Pierre, urged lawmakers to pass the bill, arguing it would help people move from renting into homeownership.
“I think this program will give people a leg up. And if you’re so inclined, I would sure encourage a green vote to help people’s American dream come true.”
Rep. Tina Mulally, R-Rapid City, said she opposed the bill and argued buyers can save for a down payment by cutting other expenses.
“If you didn’t have a car payment, you could set aside a little bit of money,” she said. “If you didn’t have a $1,000 phone, you could set aside a little bit of money.”
As of Tuesday afternoon’s reconsidered vote, HB 1113 failed again on the House floor, 45-21, short of the two-thirds vote required.
Any further attempt would require additional House action.
By Todd Epp | South Dakota Broadcasters Association.
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