South Dakota Code § 54-12-22

Reverse mortgage loan payment--Undisbursed reverse mortgage funds
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A reverse mortgage loan payment made to a borrower is treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under means
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tested programs of aid to individuals. Undisbursed reverse mortgage funds shall be treated as equity in a borrower's home and not as proceeds from a loan, resources, or assets for the purpose of determining eligibility and benefits under means
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tested programs of aid to individuals. This section applies to any law or program relating to payments, allowances, benefits, or services provided on a means
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tested basis by this state, including supplemental security income, low
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income energy assistance, property tax relief, medical assistance, and general assistance.

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