South Carolina Legislature


 

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H 4606
Session 109 (1991-1992) 

H 4606 General Bill, By L.S. Whipper, H. Brown, Cobb-Hunter, J.L. Harris, 
H.H. Keyserling, D.E. McTeer, T.F. Rogers and C.Y. Waites
 A Bill to amend Chapter 13, Title 31, Code of Laws of South Carolina, 1976, by
 adding Article 4 so as to enact the Housing Trust Fund Act of 1992 and to
 provide definitions, to create the Fund and an advisory committee, to provide
 for the duties of an Executive Director; and to provide for the purpose, use,
 and operation of the fund; to amend Section 12-21-380, relating to tax on
 instruments conveying realty, so as to increase the tax from one dollar ten
 cents to one dollar sixty cents on each five hundred dollars of consideration
 paid for the property and to provide that this fifty cent increase be paid to
 the Housing Trust Fund; to redesignate Article 3, Chapter 3, Title 31 as
 Article 1, Chapter 13, Title 31; to redesignate Sections 31-3-110 through
 31-3-180 as 31-13-20 through 31-13-90, respectively; to redesignate Section
 31-13-160 as 31-13-10; and to designate Sections 31-13-170 through 31-13-340
 as Article 3, Chapter 13, Title 31.

   03/25/92  House  Introduced and read first time HJ-17
   03/25/92  House  Referred to Committee on Ways and Means HJ-17
   04/07/92  House  Committee report: Majority favorable with amend.,
                     minority unfavorable Ways and Means HJ-6



Indicates Matter Stricken
Indicates New Matter

COMMITTEE REPORT

April 7, 1992

H. 4606

Introduced by REPS. Whipper, Waites, Cobb-Hunter, Keyserling, Rogers, J. Harris, McTeer and H. Brown

S. Printed 4/7/92--H.

Read the first time March 25, 1992.

THE COMMITTEE ON WAYS AND MEANS

To whom was referred a Bill (H. 4606), to amend Chapter 13, Title 31, Code of Laws of South Carolina, 1976, by adding Article 4 so as to enact the Housing Trust Fund Act of 1992 and to provide definitions, etc., respectfully

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, Section 31-13-430(c) by adding at the end of the subsection /The advisory committee shall adopt rules concerning meeting attendance by its members./ so when amended the subsection reads:

"(C) The advisory committee shall meet at least four times a year to advise the board of particularly critical housing needs, to recommend to the board those areas of the State in which requests for proposals for developments should be published, the type of development for which proposals should be solicited, and to provide other pertinent information to the board as the members of the advisory committee consider appropriate. The advisory committee shall adopt rules concerning meeting attendance by its members."

Amend further by deleting Section 31-13-430(D) and inserting:

/(D) The members of the advisory committee are not eligible for reimbursement for travel, lodging, meals, or per diem./

Amend further, Section 12-21-380, page 9, by deleting on lines 18 and 20 /ten sixty/ and inserting /ten thirty/; by deleting on line 25 / Fifty/ and inserting /Twenty/; and on line 27 by deleting /fifty/ and inserting /twenty/. so when amended this section reads:

"Section 12-21-380. A deed, instrument, or writing whereby any lands, tenements, or other realty sold is granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person by his the purchaser's direction when the consideration or value of the interest or property conveyed exclusive of the value of any lien or encumbrance remaining thereon on the interest or property at the time of sale exceeds one hundred dollars and does not exceed five hundred dollars must be taxed one dollar and ten thirty cents and for each additional five hundred dollars, or fractional part thereof, one dollar and ten thirty cents. Ten cents of the tax on those sales over one hundred dollars but not exceeding five hundred dollars and ten cents of the tax on each additional increment of five hundred dollars must be paid to the Heritage Land Trust Fund. Twenty cents of the tax on those sales over one hundred dollars but not exceeding five hundred dollars and twenty cents of the tax on each additional increment of five hundred dollars must be paid to the South Carolina Housing Trust Fund. Any A deed, instrument, or writing whereby any lands, tenements, or other realty is granted, assigned, transferred, or otherwise conveyed to, or vested in, the State of South Carolina, or any of its political subdivisions and departments, for highway or other public purposes is exempted from the documentary tax requirements of this section, and any clerk of court or register of mesne conveyances may record these deeds or other instruments without revenue stamps affixed and without penalty."

Renumber sections to conform.

Amend totals and title to conform.

Majority favorable. Minority unfavorable.

WILLIAM D. BOAN JARVIS R.KLAPMAN

For Majority. HERBERT KIRSH

For Minority.

STATEMENT OF ESTIMATED FISCAL IMPACT

House Bill 4606 amends Chapter 13, Title 31, by adding Article 4 so as to enact the Housing Trust Fund Act of 1992 and to provide definitions, to create the fund and an advisory committee, to provide for the duties of an executive director; and to provide for the purpose, use, and operation of the fund; to amend Section 12-21-380, relating to tax on instruments conveying realty, so as to increase the tax from one dollar ten cents to one dollar sixty cents on each five hundred dollars of consideration paid for the property and to provide that this fifty cent increase be paid to the Housing Trust Fund; to redesignate Article 3, Chapter 3, Title 31 as Article 1, Chapter 13, Title 31; to redesignate Sections 31-3-110 through 31-3-180 as 31-13-20 through 31-13-90, respectively; to redesignate Section 31-13-160 as 31-13-10; and to designate Sections 31-13-170 through 31-13-340 as Article 3, Chapter 13, Title 31.

This Bill would place in the Housing Trust Fund approximately $2,400,000 per year.

Approved By:

A. Crawford Clarkson, Jr.

S.C. Tax Commission

A BILL

TO AMEND CHAPTER 13, TITLE 31, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 SO AS TO ENACT THE HOUSING TRUST FUND ACT OF 1992 AND TO PROVIDE DEFINITIONS, TO CREATE THE FUND AND AN ADVISORY COMMITTEE, TO PROVIDE FOR THE DUTIES OF AN EXECUTIVE DIRECTOR; AND TO PROVIDE FOR THE PURPOSE, USE, AND OPERATION OF THE FUND; TO AMEND SECTION 12-21-380, RELATING TO TAX ON INSTRUMENTS CONVEYING REALTY, SO AS TO INCREASE THE TAX FROM ONE DOLLAR TEN CENTS TO ONE DOLLAR SIXTY CENTS ON EACH FIVE HUNDRED DOLLARS OF CONSIDERATION PAID FOR THE PROPERTY AND TO PROVIDE THAT THIS FIFTY CENT INCREASE BE PAID TO THE HOUSING TRUST FUND; TO REDESIGNATE ARTICLE 3, CHAPTER 3, TITLE 31 AS ARTICLE 1, CHAPTER 13, TITLE 31; TO REDESIGNATE SECTIONS 31-3-110 THROUGH 31-3-180 AS 31-13-20 THROUGH 31-13-90, RESPECTIVELY; TO REDESIGNATE SECTION 31-13-160 AS 31-13-10; AND TO DESIGNATE SECTIONS 31-13-170 THROUGH 31-13-340 AS ARTICLE 3, CHAPTER 13, TITLE 31.

Whereas, the availability of affordable, safe, and sanitary housing for all citizens is essential to the social and economic well-being of the State of South Carolina; and

Whereas, there exists in the State of South Carolina a serious shortage of residential housing available at affordable sale or rental prices to persons and families of very low and lower income; and

Whereas, the Comprehensive Housing Affordability Strategy for the State of South Carolina has identified further the critical shortage of affordable housing for special needs populations such as the homeless, persons with disabilities, very low income elderly, and persons and families needing transitional housing; and

Whereas, the provision of affordable housing by innovative partnerships between government, nonprofit sponsors, and the private sector requires the dedication of state financial resources to supplement and leverage other public and private resources; and

Whereas, participation in the various programs authorized by the National Affordable Housing Act will require that the State of South Carolina make certain financial resources available to be used as matching funds; and

Whereas,the General Assembly finds that the creation of a Housing Trust Fund to provide state financial resources to assist in the provision of affordable housing affirms the commitment of state government that all citizens of South Carolina will have access to safe, decent, sanitary, and affordable housing. Now, therefore,

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

SECTION 1. Chapter 13, Title 31 of the 1976 Code is amended by adding:

"Article 4

Housing Trust Fund

Section 31-13-400. This article may be cited as the South Carolina Housing Trust Fund Act.

Section 31-13-410. As used in this article:

(1) `Affordable housing' means residential housing that, so long as the same is occupied by lower or very low income households, requires payment of monthly housing costs of no more than thirty percent of one-twelfth adjusted annual income.

(2) `Annual income' means the anticipated total income from all sources received by the family head and spouse and by each additional member of the household, including all net income derived from assets.

(3) `Authority' means the South Carolina State Housing Finance and Development Authority.

(4) `Board' means the Board of Commissioners of the South Carolina State Housing Finance and Development Authority.

(5) `Executive director' means the executive director of the authority.

(6) `Lower income household' means a single person, family, or unrelated persons living together whose annual income adjusted for household size is more than fifty percent, but less than eighty percent, of the median income of the area of residence as determined by the United States Department of Housing and Urban Development.

(7) `Substandard unit' means a housing unit which, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, unsanitary or unsafe conditions, or the existence of conditions which endanger life or property by fire and other causes, or any combination of these factors, is conducive to ill health, transmission of disease, or has an adverse effect upon the public health, safety, morals, or welfare of its inhabitants.

(8) `Trust fund' or `fund' means the South Carolina Housing Trust Fund.

(9) `Very low income household' means a household that has an annual income adjusted for household size of less than fifty percent of the median income of the area of residence as determined by the United States Department of Housing and Urban Development.

Section 31-13-420. (A) There is established the South Carolina Housing Trust Fund. The State Treasurer shall serve as trustee for the fund and shall hold the monies deposited in the fund separate and distinct from the general funds of the State. The trust fund consists of monies received under this article and any other sources of revenue, public or private, including donations, dedicated for inclusion in the trust fund. The State Treasurer shall deposit the funds in a separate account to be administered by the authority in accordance with the guidelines and purposes established by this article. Interest, repayment, or other increment resulting from investment must be deposited in the fund.

(B) The monies in the trust fund must be paid out only upon the signature of the chairman of the board or a designee of the board and the signature of the executive director, upon the written warrants of the Comptroller General drawn on the State Treasurer to the payee designated in the requisition. The authority shall maintain separate records and books of accounts for all monies deposited into the fund. The authority is entitled to reimbursement for the costs or expenses incurred in the administration and operation of the fund from monies deposited into the fund.

(C) The board shall make a separate annual report to the Governor and the General Assembly with respect to the fund pursuant to Article 11, Chapter 1 of Title 1.

Section 31-13-430. (A) An advisory committee is established consisting of nine members, three of whom must be selected by the board and must include one member of a very low income household, one member of a lower income household, a representative of a nonprofit organization which pursues housing programs, and one representative of each of the following:

(1) South Carolina Low Income Housing Coalition;

(2) South Carolina Citizens for Housing;

(3) South Carolina Association of Housing Authority Executive Directors;

(4) South Carolina Community Development Association;

(5) South Carolina Housing Partnership; and

(6) South Carolina Association of Regional Councils.

(B) On or before the first day of January of each year the presiding officer of each organization represented on the advisory committee shall notify the chairman of the authority of the name, mailing address, and telephone number of its representative on the advisory committee. It is the duty of the chairman to ensure that timely notification of each meeting of the advisory committee is provided to each of its members.

(C) The advisory committee shall meet at least four times a year to advise the board of particularly critical housing needs, to recommend to the board those areas of the State in which requests for proposals for developments should be published, the type of development for which proposals should be solicited, and to provide other pertinent information to the board as the members of the advisory committee consider appropriate.

(D) Members of the advisory committee are entitled to per diem and mileage as provided by law for members of state boards, committees, and commissions.

Section 31-13-440. (A) Pursuant to this article and in accordance with the procedures adopted by the board, the executive director is responsible for the day-to-day operations of the fund.

(B) The executive director shall:

(1) develop and implement a comprehensive program for the use of the fund, which ensures the equitable distribution of monies in the fund between urban and rural areas of South Carolina;

(2) develop and implement an application and selection system to identify housing sponsors and affordable housing developments which qualify to receive assistance from the fund;

(3) provide technical assistance to prospective applicants;

(4) monitor developments receiving assistance from the fund to ensure that the developments are operated in a manner consistent with this article and in accordance with the representations made by the sponsors of these developments to the fund; and

(5) ensure that all developments receiving assistance from the fund are operated in a manner consistent with the South Carolina Fair Housing Law.

(C) The executive director may utilize members of the authority staff as considered necessary to discharge the executive director's responsibilities under this section.

Section 31-13-450. (A) Except as otherwise provided in this section, all monies deposited in the fund must be used to increase the supply of safe, decent, and affordable housing for members of the very low or lower income households within this State. These monies must be used to:

(1) encourage affordable home ownership and rental housing opportunities for the very low and lower income individuals and households;

(2) to assist in the creation and preservation of safe, decent, affordable, and sanitary housing for very low and lower income persons through the provision of loans and grants; (3) to increase the availability of affordable rental and owner-occupied housing for special needs populations, including housing for the elderly, the handicapped, and the homeless;

(4) to promote creativity and flexibility in the design of programs at the local level to bring about the creation of safe, decent, affordable, and sanitary home ownership and rental housing in quality living environments;

(5) to maximize the utilization of federal housing assistance programs and to leverage all other public and private resources; and

(6) establish a spirit of partnership between government, nonprofit, and for-profit concerns and those in need of affordable housing.

(B) Monies deposited in the fund must be used to finance, in whole or in part, affordable housing projects and developments eligible under this section. Monies deposited in the fund may be used to make loans, grants, or provide for matching funds to secure financial assistance made available through federal funding and other programs to eligible applicants for the provision of affordable housing. Only nonprofit sponsors are eligible to receive grants for the implementation of an affordable housing proposal. Funds for resident services programs which further independence and responsibility may be included in a proposal submitted to the fund but may not exceed two percent of the total funds requested in the proposal.

(C) In evaluating proposals for the use of monies deposited in the fund, the board shall ensure, to the extent feasible, that monies are allocated to affordable housing for home ownership or rental housing developments which provide housing to members of very low income households. No project or development is eligible to receive assistance from the fund unless the housing units located in the project or development are reserved exclusively for the use of members of very low or lower income households for not less than thirty years, beginning on the date on which ten percent of the units in the development or project become occupied.

(D) The board shall ensure that monies deposited in the fund are allocated only to projects which are eligible projects. An eligible project consists of one or more residential buildings containing similarly constructed units, the site on which the building is located, and any functionally related facilities. Multiple buildings may constitute a project only if bounded together as a result of proximate location or common ownership and financing.

(E) The board may approve the withdrawal of monies deposited in the fund for the acquisition and rehabilitation of substandard housing units, new construction of housing units, to provide assistance for the construction or rehabilitation of shelters for the homeless, or for such other programs which increase the supply of safe, decent, and affordable housing for members of very low or lower income households which the board considers appropriate to meet the purposes stated in this section.

Section 31-13-460. Units of state, regional, and local governments, including municipal corporations and nonprofit and for-profit housing sponsors, are eligible to apply to receive monies from the fund for the development of affordable housing.

Section 31-13-470. (A) Monies within the fund must be allocated to eligible applicants, who have submitted proposals for eligible projects, in accordance with funding cycles established at least annually by the board.

(B) In allocating monies within the fund, priority must be given to applications which provide for one or more of the following:

(1) affordable housing proposals which serve very low income households;

(2) local government contributions to project costs, including infrastructure improvements, contributions of publicly-owned land for housing development, and the provision of funds for resident services;

(3) proposals which utilize financial assistance available through federal funding or other programs to leverage monies available from the fund;

(4) applicant contributions to project costs;

(5) proposals submitted by nonprofit sponsors for the provision of affordable housing;

(6) coordination with other housing and infrastructure investments in the community;

(7) provision of housing to persons whose current housing fails to meet basic standards of health and safety and who have little prospect of improving the condition of their housing.

SECTION 2. Section 12-21-380 of the 1976 Code is amended to read:

"Section 12-21-380. A deed, instrument, or writing whereby any lands, tenements, or other realty sold is granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person by his the purchaser's direction when the consideration or value of the interest or property conveyed exclusive of the value of any lien or encumbrance remaining thereon on the interest or property at the time of sale exceeds one hundred dollars and does not exceed five hundred dollars must be taxed one dollar and ten sixty cents and for each additional five hundred dollars, or fractional part thereof, one dollar and ten sixty cents. Ten cents of the tax on those sales over one hundred dollars but not exceeding five hundred dollars and ten cents of the tax on each additional increment of five hundred dollars must be paid to the Heritage Land Trust Fund. Fifty cents of the tax on those sales over one hundred dollars but not exceeding five hundred dollars and fifty cents of the tax on each additional increment of five hundred dollars must be paid to the South Carolina Housing Trust Fund. Any A deed, instrument, or writing whereby any lands, tenements, or other realty is granted, assigned, transferred, or otherwise conveyed to, or vested in, the State of South Carolina, or any of its political subdivisions and departments, for highway or other public purposes is exempted from the documentary tax requirements of this section, and any clerk of court or register of mesne conveyances may record these deeds or other instruments without revenue stamps affixed and without penalty."

SECTION 3. (A) Article 3 of Chapter 3, Title 31 of the 1976 Code is redesignated as Article 1 of Chapter 13, Title 31 and entitled "State Housing Finance and Development Authority" and Sections 31-3-110 through 31-3-180 are redesignated as Sections 31-13-20 through 31-13-90 respectively.

(B) Section 31-13-170 of the 1976 Code is redesignated as Section 31-13-10 and placed in Article 1 of Chapter 13, Title 31 as designated by Section 3(A) of this act.

(C) Sections 31-13-160 through 31-13-340 of the 1976 Code are designated as Article 3 of Chapter 13, Title 31 to be entitled "Issuance of Bonds and Other Obligations".

SECTION 4. This act takes effect upon approval by the Governor.

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