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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 22 TO TITLE 31 SO AS TO ENACT THE "SOUTH CAROLINA LOCAL HOUSING TRUST FUND ENABLING ACT", TO AUTHORIZE LOCAL GOVERNMENTS TO CREATE AND OPERATE A LOCAL OR REGIONAL HOUSING TRUST FUND FOR THE DEVELOPMENT OR REHABILITATION OF AFFORDABLE HOUSING, AND TO PROVIDE FOR SOURCES OF FINANCING OF THE TRUST FUND.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that:
(1) throughout the State, there is a shortage of adequate shelter all South Carolinians require, which includes a residence or permanent domicile with adequate privacy, space, physical accessibility, security, structural stability, and durability, and adequate electricity, plumbing, and heat;
(2) there is a dearth of sanitary, decent, and safe residential housing at prices or rentals which are affordable for persons and families with lower incomes; and
(3) it is in the public's health, safety, and economic interests to provide permanent and affordable housing for our state's citizens in order to help South Carolinians maintain employment, assist the state's children to succeed in school, and encourage the economic growth and well-being of the State.
SECTION 2. Title 31 of the 1976 is amended by adding:
Section 31-22-10. This chapter may be cited as the 'South Carolina Local Housing Trust Fund Enabling Act'.
Section 31-22-20. For purposes of this chapter:
(1) 'Affordable housing' means residential housing for rent or sale that is appropriately priced for rent or sale to a person or family whose income does not exceed eighty percent of the median income for the local area, with adjustments for household size, according to the latest figures available from the United States Department of Housing and Urban Development (HUD).
(2) 'Homeless housing' means emergency, transitional, or permanent residential housing for a family or person needing special assistance with shelter because of homelessness as defined by HUD or consistent with another definition of homelessness allowable for the receipt of federal or state financial assistance or supportive services.
(3) 'Local housing trust fund' (LHTF) means a local government fund separate from the general fund and established by the county or municipal governing authority with one or more dedicated sources of public revenue used for the purposes established in this chapter.
(4) 'Regional housing trust fund' (RHTF) means a multi-jurisdictional government fund separate from the general fund and established jointly by one or more county or municipal governing bodies, or both, with one or more dedicated sources of public revenue used for the purposes established in this chapter.
Section 31-22-30. (A) The governing body of a county or municipality, by ordinance, may create and operate one or more LHTFs or RHTFs, or partner with an existing trust fund to implement a local or regional program, or both, to establish affordable housing. A local governing body may partner with an existing trust fund if the trust fund operates pursuant to the provisions of this chapter.
(B) Notwithstanding another provision of law, a governing body of a county or municipality may appropriate funds to a LHTF or RHTF, or both, with revenues collected by the local government. Sources of revenue may include, but are not limited to, bond proceeds, donations, and private, federal, or state grants, loans, and other sources. The local governing body, by ordinance, may select one or more dedicated sources of revenue to finance a housing trust fund and may alter the source of revenue during the annual budget process if sufficient funding exists to pay for projected debt and operating expenses authorized in the housing trust fund budget.
(C) A county or municipal governing body that creates and operates a LHTF or RHTF shall maintain the funds in a separate and distinct account and require an annual audit and annual financial expense report for the trust funds.
(D) Funds in a LHTF and RHTF must be used for a program or project that results in the development or rehabilitation of affordable housing. Preference for distribution of the funds may be given to a program or project that results in the development or rehabilitation of affordable housing for an individual or a family with an annual income at or below fifty percent of the median income for the local area, with adjustments for family size, according to the latest figures available from HUD, the development or rehabilitation of special needs housing, or the development or rehabilitation of homeless housing.
(E) Funds in the LHTF and RHTF may be used to match other funds from federal, state, and private sources, including funds from the State Housing Trust Fund. A local governing body may leverage additional resources for housing programs and projects to the maximum extent practicable."
SECTION 3. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, June 22, 2009 at 2:57 P.M.