Bill
SD 2410
Summary of SD 2410: An Act Reforming the Housing Development Incentive Program OverviewThis proposed bill, SD 2410, aims to reform the existing housing development incentive progra
This proposed bill, SD 2410, aims to reform the existing housing development incentive program in order to spur more affordable housing construction across the state. The bill was introduced on February 27, 2025 and has since been passed by the state legislature, with the House concurring on the final version.
The main elements of the bill include:
Expanding Eligibility: The bill broadens the types of housing developments that can qualify for incentives, now including both rental units and owner-occupied homes. Previously, the program was limited to rental properties only.
Increasing Incentive Amounts: The legislation increases the maximum tax credits and other financial incentives available to housing developers, providing up to $20,000 per new unit created. The prior cap was $15,000 per unit.
Targeting Lower-Income Households: At least 40% of the incentivized units must be made affordable to households earning 80% or less of the area median income. This is an increase from the previous 30% requirement.
Streamlining Application Process: The bill directs the state housing agency to simplify the application and approval process for the incentive program, reducing red tape and processing times.
If enacted, SD 2410 is expected to significantly boost housing construction, especially for more affordable units. State officials estimate the reforms could lead to 5,000 additional affordable homes being built over the next 5 years.
The new provisions are set to take effect on January 1, 2026, giving developers time to prepare for the changes. The housing agency has 6 months from the bill's passage to update the program guidelines and application procedures.
In summary, this legislation aims to spur more affordable housing development by expanding the eligibility, increasing financial incentives, and streamlining the process for housing developers to access the state's housing incentive program. If successful, it could meaningfully increase the supply of affordable homes across the state in the coming years.
Compiled from official sources — confirm details with the bill’s official record.
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