H 3813 Session 112 (1997-1998)
H 3813 General Bill, By Cobb-Hunter, Bailey, Breeland, T. Brown, Canty, Cave,
Inabinett, Kennedy, Lloyd, Mack, Miller, J.H. Neal and Whipper
A BILL TO AMEND TITLE 13, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
PLANNING, RESEARCH, AND DEVELOPMENT BY ADDING CHAPTER 23 SO AS TO ENACT THE
"COMMUNITY DEVELOPMENT CORPORATION ACT OF 1997" AND TO AUTHORIZE THE
DEPARTMENT OF COMMERCE TO EXPEND FUNDS FOR GRANTS AND LOANS TO COMMUNITY
DEVELOPMENT CORPORATIONS; TO DIRECT THE DEPARTMENT TO ESTABLISH OR DESIGNATE A
COMMITTEE TO REVIEW GRANT AND LOAN APPLICATIONS; AND TO ESTABLISH ELIGIBILITY
CRITERIA.
04/02/97 House Introduced and read first time HJ-126
04/02/97 House Referred to Committee on Ways and Means HJ-127
A BILL
TO AMEND TITLE 13, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PLANNING, RESEARCH,
AND DEVELOPMENT BY ADDING CHAPTER 23 SO AS TO
ENACT THE "COMMUNITY DEVELOPMENT CORPORATION
ACT OF 1997" AND TO AUTHORIZE THE DEPARTMENT OF
COMMERCE TO EXPEND FUNDS FOR GRANTS AND LOANS
TO COMMUNITY DEVELOPMENT CORPORATIONS; TO
DIRECT THE DEPARTMENT TO ESTABLISH OR DESIGNATE
A COMMITTEE TO REVIEW GRANT AND LOAN
APPLICATIONS; AND TO ESTABLISH ELIGIBILITY
CRITERIA.
Whereas, the General Assembly finds that:
(1) Many of South Carolina's urban and rural communities
face critical social and economic problems arising in part from people
living in poverty and arising in part from the lack of economic
growth, employment, affordable housing, and small business and
other opportunities;
(2) Local communities already have many of the assets,
resources, and a vision of 'personal responsibility' necessary to
restore and maintain community and economic growth if given seed
funding, technical support, and the opportunity to implement their
vision;
(3) The restoration and maintenance of these communities
will require increased organizational capacity of local communities
and access to capital for development activities, including investment
in small businesses, housing, human and organizational development,
and other activities that promote the long-term economic and social
viability of the community;
(4) Access to credit and capital is essential to unleash the
untapped potential and entrepreneurial energy of South Carolina's
poorest communities and to empower individuals and communities
to become responsible and self sufficient;
(5) The public or private sector alone is not the answer to
addressing the long standing problems of our poorest communities,
but partnerships with community based nonprofit organizations can
revitalize and sustain community and economic development
activities. Because responsibility is given to local residents, the
chances of success are increased and the development is sustainable;
(6) Community development corporations have proven their
ability to identify and respond to community needs and manage
community assets for the purpose of community and economic
development on a local level; and
Whereas, in accordance with the findings enumerated herein, the
General Assembly finds that the provisions of this act are consistent
with many public policy objectives of this State and will further
economic growth, higher employment, and community development,
thereby benefiting all South Carolinians. Now, therefore,
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 13 of the 1976 Code is amended by adding:
"CHAPTER 23
Community Development Corporation
Grant and Loan Program
Section 13-23-10. This chapter may be cited as the 'Community
Development Corporation Act of 1997.'
Section 13-23-20. (A) The Department of Commerce may expend
funds for grants and loans to community development corporations.
These grant and loan funds must be used to support projects,
activities, and operations of community development corporations.
(B) The department shall establish a committee in
consultation with or shall designate the Executive Committee of the
South Carolina Association of Community Development to review
grant applications and to recommend grant recipients and grant
amounts to the department. The department shall establish and
implement criteria for grant awards in consultation with the executive
committee of the association. This criteria shall include a
requirement that the applicant has demonstrated a capacity to engage
in community development projects and has sufficient organizational
structure to ensure proper management of the grant. However, if the
entity applying is created after July 1, 1997, the applicant shall
submit a strategic plan for community development projects and shall
include evidence of developing an organizational structure which
ensures proper management.
(C) The department shall provide funds to the association to
capitalize a 'Community Development Fund' to leverage private
investments in order to build the organizational capacity of the
association.
(D) The department shall provide or contract with the
association for technical support to enable community development
corporations served under this section to be successful in developing
their organizational capacity and in implementing their projects.
(E) The department shall establish a revolving loan fund for the
purpose of making small loans, $100,000 and less, to community
development corporations for economic development projects and
activities. The department shall establish a committee in consultation
with or shall designate the executive committee of the association to
review these loan applications to recommend to the department
entities for loans and loan amounts. The department shall establish
and implement criteria for loans in consultation with the executive
committee of the association. This criteria shall include a
requirement that the applicant has demonstrated a capacity to engage
in community development projects and has sufficient organizational
structure to ensure proper management.
A community development corporation may use a loan made
pursuant to this section as leverage to secure matching dollars from
other available sources. The revolving loan fund also may be used
to provide loans, loan guarantees, and equity capital to eligible
individuals, community based development organizations, and
nonprofit organizations operating in economically distressed or
minority communities.
(F) For purposes of this section, the term 'community
development corporation' means a nonprofit corporation:
(1) chartered pursuant to Chapter 31, Title 33;
(2) tax-exempt pursuant to Section 501(c)(3) of the Internal
Revenue Code of 1986;
(3) whose primary mission is to develop and improve low
income communities and neighborhoods through economic and
related development;
(4) who designates a low income area as the specific
geographic community within which it will operate;
(5) whose activities and decisions are initiated, managed, and
controlled by the constituents of those local communities, and
(6) whose primary function is to develop projects and
activities designed to enhance the economic opportunities of the
people in the community served, including efforts to enable them to
become owners and managers of small businesses and producers of
affordable housing and jobs in the community served.
The term 'community development corporation' does not include
nonprofit organizations whose sole purposes is to provide housing to
neighborhoods or technical assistance to other nonprofit
organizations."
SECTION 2. This act takes effect July 1, 1997.
-----XX----- |