One of the main impacts of this bill is the establishment of a framework for religious institutions to engage in affordable housing projects while retaining their tax-exempt status. To qualify for this exemption, these organizations must maintain a minimum ownership stake of ten percent in the housing development, ensure their projects contain at least ten units, and dedicate a minimum of fifty percent of these units specifically for affordable housing. Overall, this legislative measure is designed to incentivize religious organizations to contribute more actively to solving housing shortages in their communities.
Summary
House Bill 3458, known as the Religious Institutions Affordable Housing Act, proposes significant amendments to the South Carolina Code of Laws by allowing religious organizations that qualify as 501(c)(3) entities to construct affordable housing on their property without forfeiting their property tax exemption. The bill specifies that these organizations could use their contiguous property for such developments, which are defined as housing units with annual rents at or below sixty percent of the median household income for the respective county. This legislative move aims to address the affordable housing crisis by leveraging the resources and land owned by religious institutions.
Contention
Notably, the bill may face contention from various stakeholders who could argue against the use of tax-exempt properties for private development purposes. Critics might express concern that allowing religious organizations such powers could lead to the commercialization of community assets while potentially undermining local governance and zoning laws that regulate land use. Others may question the effectiveness of such policies in genuinely providing affordable housing solutions instead of merely expanding the capabilities of religious institutions in property development.
Establishes an income tax credit for donations of property used for research or direct education of students to certain educational institutions (EG -$2,120,000 GF RV See Note)