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Cosmological analyses with type Ia supernovae (SNe Ia) often assume a single empirical relation between color and luminosity ($\beta$) and do not account for varying host-galaxy dust properties. However, from studies of dust in large samples of galaxies, it is known that dust attenuation can vary significantly. Here we take advantage of state-of-the-art modeling of galaxy properties to characterize dust parameters (dust attenuation $A_V$, and a parameter describing the dust law slope $R_V$) for the Dark Energy Survey (DES) SN Ia host galaxies using the publicly available \texttt{BAGPIPES} code. Utilizing optical and infrared data of the hosts alone, we find three key aspects of host dust that impact SN Ia cosmology: 1) there exists a large range ($\sim1-6$) of host $R_V$ 2) high stellar mass hosts have $R_V$ on average $\sim0.7$ lower than that of low-mass hosts 3) there is a significant ($>3\sigma$) correlation between the Hubble diagram residuals of red SNe Ia that when corrected for reduces scatter by $\sim13\%$ and the significance of the ``mass step'' to $\sim1\sigma$. These represent independent confirmations of recent predictions based on dust that attempted to explain the puzzling ``mass step'' and intrinsic scatter ($\sigma_{\rm int}$) in SN Ia analyses. We also find that red-sequence galaxies have both lower and more peaked dust law slope distributions on average in comparison to non red-sequence galaxies. We find that the SN Ia $\beta$ and $\sigma_{\rm int}$ both differ by $>3\sigma$ when determined separately for red-sequence galaxy and all other galaxy hosts. The agreement between fitted host-$R_V$ and SN Ia $\beta$ \& $\sigma_{\rm int}$ suggests that host dust properties play a major role in SN Ia color-luminosity standardization and supports the claim that SN Ia intrinsic scatter is driven by $R_V$ variation., Comment: 22 pages. Submitted to MNRAS

As we observe a rapidly growing number of astrophysical transients, we learn more about the diverse host galaxy environments in which they occur. Host galaxy information can be used to purify samples of cosmological Type Ia supernovae, uncover the progenitor systems of individual classes, and facilitate low-latency follow-up of rare and peculiar explosions. In this work, we develop a novel data-driven methodology to simulate the time-domain sky that includes detailed modeling of the probability density function for multiple transient classes conditioned on host galaxy magnitudes, colours, star formation rates, and masses. We have designed these simulations to optimize photometric classification and analysis in upcoming large synoptic surveys. We integrate host galaxy information into the SNANA simulation framework to construct the Simulated Catalogue of Optical Transients and Correlated Hosts (SCOTCH), a publicly-available catalogue of 5 million idealized transient light curves in LSST passbands and their host galaxy properties over the redshift range $0