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 act will create a framework for the SCAH-REIT, which will be governed by a board comprising representatives from various sectors, including housing finance, real estate, and nonprofit organizations. The SCAH-REIT will focus on funding, developing, and managing affordable housing projects, with at least seventy percent of its assets required to be invested in projects that meet the affordability standard of sixty percent of the Area Median Income (AMI).

The bill provides significant tax exemptions for the SCAH-REIT and its investors, including exemptions from state corporate income taxes, individual income taxes on dividends, and property taxes for qualifying affordable housing projects for up to twenty-five years. Additionally, the act allocates fifty million dollars from the state housing trust fund as initial funding for the SCAH-REIT and allows for the raising of additional capital through private investments. The SCAH-REIT is required to submit annual reports to the General Assembly detailing its operations and financial performance, ensuring transparency and accountability in its mission to increase the supply of affordable housing statewide.