Equitable Development and Affordable Housing Act
The bill reflects a growing concern over the imbalance between job growth and housing availability in South Carolina. Lawmakers emphasize that inadequate housing options can exacerbate economic inequality and hinder overall community development. The act aims to ensure that as the state attracts new businesses, it simultaneously addresses the corresponding need for affordable housing, promoting a healthier jobs-to-housing ratio. This ratio is to be monitored by the Department of Commerce in collaboration with local planning authorities, with oversight to ensure that it does not exceed 1.5 jobs per housing permit.
House Bill 3750, titled the 'Equitable Development and Affordable Housing Act,' seeks to amend the South Carolina Code of Laws by requiring that certain parcels of land designated for economic development must include a mandatory set-aside for affordable housing. As outlined in the bill, when land is provided, discounted, or subsidized as part of an economic development agreement with a business, a minimum of fifteen percent of the land must be allocated specifically for the development of affordable housing.
While supporters of the bill argue that it is a necessary step to create sustainable communities and maintain economic equilibrium, there may be pushback from business interests concerned about land use requirements. Critics may argue that mandating land set-asides could deter new businesses or hinder economic incentives intended to create jobs. Additionally, the bill includes penalties for noncompliance, such as delayed future incentives for businesses that do not adhere to these requirements, which may raise concerns about governmental overreach and its impact on economic growth.
The act is slated to take effect on July 1, 2025, and will apply to all economic development agreements executed from that date onwards. This timeline allows both businesses and government agencies to prepare for and adapt to the new requirements, ensuring that affordable housing remains a priority in the planning and execution of economic development initiatives.