The bill H. 4008 aims to amend the South Carolina Code of Laws by introducing a one-time impact fee of at least six percent on private developers for each new residential and commercial unit constructed within a county or municipality. The funds collected from this fee will be directed to the newly established South Carolina Gentrification Trust Fund, which is designated to provide financial assistance for relocation to low-income and fixed-income individuals, churches, and groups adversely affected by gentrification. Notably, developers who allocate at least fifteen percent of their housing development to low-income housing will be exempt from this impact fee, with the stipulation that the low-income status must be maintained for one hundred years.

Additionally, the bill establishes the South Carolina Gentrification Trust Fund, which will receive an annual appropriation of five million dollars from the General Assembly starting in Fiscal Year 2025-2026. The fund will also accept donations and grants, as well as contributions made through state income tax returns. The South Carolina State Housing Finance and Development Authority will manage the fund and create regulations for grant eligibility and distribution. The bill also amends existing tax code provisions to include the South Carolina Gentrification Trust Fund as an option for voluntary contributions on individual income tax returns.

Statutes affected:
02/13/2025: 6-1-175, 11-11-250, 12-6-5060
Latest Version: 6-1-175, 11-11-250, 12-6-5060