The "Accessory Dwelling Unit Affordable Housing Incentive Act" aims to amend South Carolina's property tax laws by providing a property tax exemption for certain accessory dwelling units (ADUs). The bill introduces new provisions under Section 12-37-220, defining an ADU as a secondary housing unit on the same lot as a primary residence. To qualify for the exemption, homeowners must earn less than 250% of their county's area median income (AMI), rent the ADU to individuals earning 80% or less of the AMI, comply with local zoning regulations, maintain the ADU as affordable housing for at least ten years, and accept Section 8 payments as part of the rent.

Additionally, the bill outlines compliance requirements, including the need for homeowners to provide annual proof of compliance, such as lease agreements and tenant income documentation. If a homeowner sells the property within ten years, the tax exemption can be transferred to the new owner if they honor the existing lease. However, if the new owner opts not to continue the lease, the value of the ADU will be added to the property's value at closing, and taxes will be due. Non-compliance within the ten-year period will result in reassessment of the property's value, retroactive tax calculations, and potential loss of incentives. The act will take effect upon the Governor's approval and will apply to property tax years beginning after 2024.

Statutes affected:
12/05/2024: 12-37-220
Latest Version: 12-37-220