Legislative Update |
as of June 15, 2006 |
The regular legislative session ended on June 1st. There
will be a special session beginning June 14th for the purposes
of overriding vetoes, dealing with conference reports and other
administrative functions. Any legislation pending and not
passed as of June 1st will no longer be considered. The
legislation will have to be re-introduced in January 2007.
Tax Credits
House Bill 4737 passed the House on April 26th and the Senate on
June 1st. The bill was ratified on June 7th when the Speaker
of the House and the President Pro-Tempore. The Bill became law
on June 14, 2006 without the governor’s signature.
The legislation clarifies that counties cannot treat affordable
housing tax credits as income. It appears that some counties
add the value of the tax credit onto the assessment to increase
the amount the counties can receive in property taxes. This
proposal is a joint partnership of the Affordable Housing Coalition,
the Homebuilders Association with assistance from the Appleseed
Legal Justice Center.
Affordable Housing Commission
House Bill 4723 by Representative Mitchell was amended to provide
for an Affordable Housing Study Committee in the Lt. Governor’s
Office. The bill passed the House on April 26th and the
Senate on May 31st. This bill was ratified on June 7th
and vetoed by the Governor on June 13th. On June 14th,
the House and Senate both voted to override the veto and the
bill became law without the Governors signature.
Budget Items
The Governor’s executive budget and the House and Senate
passed versions include a provision to reinstate $6.5 million to
the Housing Trust Fund. This would replace the funds that
were used three years ago to assist the state in balancing the
budget. The budget also includes a proviso to allow for mileage
reimbursement for the South Carolina Housing Trust Fund Advisory
Committee. The entire
Budget was vetoed by the Governor on June 13th and the veto was
overridden by the General Assembly on June 14th.
Dead Bills
Affordable Housing
House Bill 3718 passed the House on April 26th with our proposed
recommendation adopting the language to amend Section 12-37-220
of the Code to add the word non-profit to clarify that the tax
incentives for affordable housing under this section are available
only to non-profit corporations. AHCofSC had expressed
concerns about this bill when it was introduced in 2005. Along
with the SC Appleseed Legal Justice Center, we presented testimony
at the April 4th Ways and Means subcommittee meeting to outline
these concerns and propose an alternative. The Senate Finance
Committee took no action on the bill.
House Bill 4512 was introduced on January 25th and amends Section
12-37-220 of the Code to add the word non-profit to clarify that
the tax incentives for affordable housing under this section are
available only to non-profit corporations. No action was
taken this bill.
House Bill 3474 would require nonprofit housing corporations who
own property within a county to pay fees for services rendered
by local governments and school districts at a rate of up to 50%
of the ad valorem taxes that would have otherwise been charged. No
action was taken on this bill.
Senate Bill 1332 was introduced on April 11th and referred to
the Senate Judiciary Committee where no action was taken. The
bill would allow for special property tax exemptions for the rehabilitation
of historic property to be used as low to moderate-income housing.
Charitable Exemptions
House Bill 3019 would require that at least 80% of all gross revenue
be used for charitable purposes for an entity to qualify as a
charity. Under the proposal charitable purpose includes,
without limitation, the gathering and communication of information,
the dissemination and propagation of views and ideas, and the
advocacy of causes relative to the stated organizational purpose. No
action was taken on the bill.
Priority Investment Act
House Bill 3881 passed the House on February 16th and died on the
Senate Contested Calendar with an objection from Senator Dick
Elliott of Horry County. The Senate Judiciary Committee
studied the bill and sent it to the Senate floor on March 15th. The
legislation would encourage private development in traditional
neighborhood design and addresses affordable housing. The
AHCofSC Public Policy Committee discussed this bill and took
no position.
Inclusionary Zoning Act
House Bill 4228 was introduced in March of 2005 and was carried
over to this legislative session. The bill is in the House
Judiciary Committee where no action was taken. The bill
would provide authority for counties and municipalities to use
Inclusionary-zoning strategies to promote the development of
affordable housing for low and moderate-income families. |
