A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "EQUITABLE DEVELOPMENT AND AFFORDABLE HOUSING ACT" by ADDING SECTION 11-1-130 SO AS TO PROVIDE THAT CERTAIN LAND MUST BE DESIGNATED FOR THE DEVELOPMENT OF AFFORDABLE HOUSING.

 

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

 

SECTION 1.  This act may be cited as the "Equitable Development and Affordable Housing Act."

 

SECTION 2.  The General Assembly finds:

       (1) Economic development incentives, such as discounted or donated land, are critical tools for attracting businesses and creating jobs in South Carolina.

       (2) The rapid growth in jobs in certain regions has outpaced housing development, leading to housing shortages and increased housing costs for residents.

       (3) Setting aside land for affordable housing as part of these incentives will help maintain a healthy ratio of jobs to housing permits, ensuring that economic growth benefits all residents.

 

SECTION 3.  Chapter 1, Title 11 of the S.C. Code is amended by adding:

 

    Section 11-1-130.  (A) For the purposes of this section:

       (1) "Affordable housing" means residential housing where monthly costs, including rent or mortgage, do not exceed thirty percent of a household's gross income for families earning up to eighty percent of the area median income (AMI).

       (2) "Land incentive" means land provided, discounted, or otherwise subsidized by state or local governments as part of an economic development agreement.

       (3) "Jobs-to-housing ratio" means a measurement comparing the number of jobs created to the number of housing permits issued within a specified area.

    (B) Whenever land is provided, discounted, or subsidized as part of an economic development agreement with a new or expanding business, a minimum of fifteen percent of the land must be designated for the development of affordable housing.

(C)(1) The affordable housing set-aside must be:

(a) developed through a partnership with a housing developer; and

(b) completed within five years of the execution of the economic development agreement.

(2) If the designated percentage of land is not suitable for residential development, an equivalent value in funding must be contributed to an affordable housing trust fund managed by the South Carolina Housing Finance and Development Authority.

    (D)(1) The Department of Commerce, in collaboration with local planning authorities, shall:

           (a) calculate annually the jobs-to-housing ratio in regions where economic incentives are provided; and

           (b) ensure the ratio does not exceed one-and-one-half jobs for each housing permit.

       (2) If the ratio exceeds this threshold, the state or local government must prioritize affordable housing development in future incentive agreements.

    (E)(1) The South Carolina Department of Commerce shall oversee compliance with this section, including:

           (a) reviewing economic development agreements to ensure land use compliance; and

           (b) publishing an annual report detailing the use of land incentives and affordable housing development outcomes.

       (2) Violations of this section result in:

           (a) suspension of future incentives for noncompliant businesses; and

           (b) a mandatory remediation plan to address housing shortages caused by noncompliance.

 

SECTION 4.  This act shall take effect on July 1, 2025, and applies to all economic development agreements executed on or after this date.

----XX----