Affordable housing TIF... and Hows it not legal in South DAkota

The City of Sioux Falls is actively working to use a property tax reduction method originally created in the 1970's to help clean up blighted areas such as Falls Park to subsidize the building and ownership of 65 residential homes in northeast Sioux Falls. 
Mind you that this practice is explicitly prohibited by the below statue. 

In short, their goal is to write a check to the contactor preparing the soil and infrastructure for this housing site, sell this debt to bond holders who collect interest on this debt, sell the finished houses below market value and then divert future property tax dollars that these new houses would produce for up to 20 years. 
Mind you that this would mean that these dollars would not be available to pay for services such as Fire Service, Police, and Street Maintenance. 
While these houses will equally consume these services, they do not pay for them. These costs are paid for by their neighbors outside of the TIF District. 

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