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) specifically focused on affordable housing projects. The act introduces a new chapter to the South Carolina Code of Laws, which outlines the creation of the South Carolina Affordable Housing Real Estate Investment Trust (SCAH-REIT). This REIT will be governed by a board comprising representatives from various sectors, including housing finance, real estate, banking, and nonprofit organizations. The SCAH-REIT will be a public-private partnership that allows investments from individuals, corporations, and housing authorities, with a mandate to invest at least seventy percent of its assets in affordable housing projects.

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 SCAH-REIT is required to distribute at least ninety percent of its annual net income as dividends to investors. The act also allocates fifty million dollars from the state housing trust fund as initial funding for the SCAH-REIT and mandates the establishment of the REIT by July 1, 2026, with board appointments to be made by January 1, 2026.