The "South Carolina Affordable Housing Tax-Exempt REIT Act" aims to address the critical shortage of affordable housing in South Carolina by establishing a tax-exempt Real Estate Investment Trust (REIT) known as the South Carolina Affordable Housing REIT (SCAH-REIT). This legislation, introduced by Rep. Jones, seeks to encourage private investment in affordable housing projects by providing tax exemptions for investors, thereby reducing reliance on government subsidies. The SCAH-REIT will be governed by a board comprising representatives from various sectors, including housing finance, real estate, banking, and nonprofit organizations, and will be required to invest at least seventy percent of its assets in affordable housing projects that meet specific income criteria.

The bill outlines several key provisions, including tax exemptions from corporate income taxes, state income taxes on dividends, and property taxes for qualifying affordable housing projects for up to twenty-five years. It mandates that the SCAH-REIT distribute at least ninety percent of its annual net income as dividends to investors and requires annual reporting to the General Assembly on its operations and financial performance. Additionally, the state will allocate fifty million dollars from the housing trust fund as initial funding for the SCAH-REIT, which is expected to be established by July 1, 2026.