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 focus on projects that meet the affordability standard of housing units for individuals earning no more than sixty percent of the Area Median Income (AMI).

The bill outlines specific provisions for the SCAH-REIT, 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 at least seventy percent of the REIT's assets be invested in affordable housing, while allowing some investment in mixed-income developments. Additionally, the act requires the SCAH-REIT to submit annual reports to the General Assembly and undergo audits by the State Fiscal Accountability Authority. Initial funding of fifty million dollars will be allocated from the state housing trust fund, with the SCAH-REIT authorized to raise further capital through private investments. The act is set to take effect upon the Governor's approval.