Could SC bring back program to build more affordable housing? What to know
The South Carolina legislature is one step closer to reviving a tax break intended to bring more affordable housing to the state.
The statewide housing tax credit program was put on hold in January after overwhelming demand caused South Carolina to lose more money than expected.
On Wednesday the House and Senate passed separate bills aimed at addressing the high costs of the tax credit. The House version passed 95-5 and the Senate version passed 37-2.
The first iteration of the program matched incentives that developers received through the federal Low Income Housing Tax Credit program with few restrictions. This meant that most developers who qualified for the federal program automatically qualified for the state program.
The state initially predicted the program would cost $16 million over the first ten years, but South Carolina ended up spending more than $25 million in the past fiscal year alone.
Both bills that passed Wednesday would cap the amount of money the state can spend on the tax credit program each year. Both bills would require the state to develop new criteria for applicants, leading to a more “competitive process that promotes highest value and greatest public benefit.”
Before these changes can become law, both chambers must hash out any differences in the two bills. It is unclear how long that might take.
This story was originally published April 7, 2022 at 9:56 AM.
