South Carolina H 3738: South Carolina Housing Development Revenue Enhancement Act

Bill Text

2025-2026 Bill 3738 Text of Previous Version (Jan. 29, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3738

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE 
"SOUTH CAROLINA HOUSING DEVELOPMENT REVENUE ENHANCEMENT ACT" BY ADDING SECTION 
31-3-1700 SO AS TO ENABLE HOUSING AUTHORITIES TO UTILIZE TAX INCREMENT FINANCING 
(TIF) AND OTHER REVENUE MECHANISMS, TO SUPPORT THE DEVELOPMENT AND FINANCING OF 
AFFORDABLE HOUSING, TO ENCOURAGE PUBLIC-PRIVATE PARTNERSHIPS, AND TO INCLUDE 
PROJECT-GENERATED REVENUES AS A SECONDARY SOURCE OF REPAYMENT FOR BONDS ISSUED.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. This act may be cited as the "South Carolina Housing Development Revenue 
Enhancement Act."

SECTION 2. The General Assembly finds that:

 (1) Affordable 
housing is essential for economic development, workforce stability, and 
community well-being.

 (2) Current 
funding mechanisms limit the ability of housing authorities to address the 
growing demand for affordable housing.

 (3) Expanding 
revenue streams, including Tax Increment Financing (TIF), project-generated 
revenues, and public-private partnerships, will empower local communities to 
finance affordable housing while maintaining fiscal responsibility.

 (4) This act 
establishes tools for housing authorities to support housing development, 
encourage private sector investment, and ensure economic growth in underserved 
areas.

SECTION 3. Article 13, Chapter 3, Title 31 of the S.C. Code is 
amended by adding:

 Section 
31-3-1700. (A)(1) Housing authorities, in 
collaboration with municipal or county governments, are authorized to establish 
Tax Increment Financing (TIF) districts, as authorized pursuant to Chapter 6, 
Title 31, for the purpose of financing affordable housing projects.

 (2) 
Incremental tax revenues generated within a designated TIF district may be 
allocated to:

 (a) 
construction, renovation, or expansion of affordable housing projects;

 (b) 
infrastructure improvements necessary for housing development, including roads, 
utilities, and public services; and

 (c) 
acquisition of land for affordable housing development or land banking for 
future projects.

 (B) Housing 
authorities may enter into agreements with municipal or county governments to 
allocate portions of local sales tax revenues or property tax revenues 
specifically for affordable housing projects.

 (C)(1) Housing authorities may impose 
impact fees on new commercial and residential developments within a designated 
TIF district to support affordable housing development.

 (2) 
Fees must be reasonably related to the housing needs generated by the 
development and approved by the governing body of the municipality or county.

 (D) Housing 
authorities may establish local housing trust funds, financed by TIF revenues, 
impact fees, voluntary contributions, or grants, to provide ongoing support for 
affordable housing development and maintenance.

 (E)(1) In addition to incremental tax 
revenues collected from the TIF district, housing authorities may use 
project-generated revenues as a secondary source of repayment for bonds or loans 
issued under this section.

 (2) 
Eligible project-generated revenues may include:

 (a) 
rental income from housing units within the development;

 (b) 
lease payments from retail or commercial tenants; and

 (c) 
fees or service charges collected from residents or users of the property.

 (3) 
Secondary repayment sources only may be utilized if incremental tax revenues 
are insufficient to meet repayment obligations.

 (F)(1) Housing authorities are encouraged 
to form public-private partnerships to leverage private investment and 
expertise for affordable housing projects.

 (2) 
Housing authorities may:

 (a) 
enter joint ventures with private developers to create mixed-income and 
mixed-use developments;

 (b) 
establish build-to-lease agreements with private firms; and

 (c) 
offer tax incentives or other benefits to private entities contributing to 
affordable housing development within TIF districts.

 (G) 
Any TIF district or revenue-sharing agreement created under this section must:

 (1) 
be approved by the governing body of the municipality or county in which the 
housing authority operates;

 (2) 
include a detailed financial plan outlining the use of funds, projected 
revenues, and expected outcomes; and

 (3) 
require annual reporting to the State Fiscal Accountability Authority on the 
use of funds and the progress of housing projects.

 (H) The 
provisions of this section expire on January 1, 2035, unless reauthorized by 
the General Assembly.

SECTION 4. If any section, subsection, 
paragraph, subparagraph, sentence, clause, phrase, or word of this act is for 
an