Bill
H 3458
Religious institutions can develop affordable housing on their property without losing tax‑exempt status if they own at least 10% of the project, with 50%+ units affordable.
Note on source material
- The materials provided include two distinct bill texts in the same file: (A) a Massachusetts House bill (H.3458) concerning utility "double poles," and (B) a South Carolina draft titled the "Religious Institutions Affordable Housing Act" that would add Section 31-1-60 to the S.C. Code. This summary covers the South Carolina “Religious Institutions Affordable Housing Act” text (Section 31-1-60). Verify jurisdiction and bill tracking with the appropriate legislature before taking action.
Overview / Purpose
- The bill allows a religious institution that is a 501(c)(3) organization to use its property to build affordable housing without losing its property tax–exempt status under S.C. Code §12-37-220. It is intended to encourage faith-based organizations to add affordable housing while preserving tax-exempt treatment.
Key definitions
- “Affordable housing”: a dwelling unit with an annual rent equal to 60% or less of the median household income for the county where the unit is located.
Primary requirements for tax-exempt treatment
- Ownership and project size:
- The religious institution must retain at least 10% ownership of the affordable housing project.
- The project must include at least 10 housing units.
- Affordability set‑aside:
- At least 50% of the units must be designated and maintained as affordable housing at all times (i.e., rent ≤ 60% of county median household income).
- Unit types allowed:
- Units may be multifamily apartments, duplexes, single‑family houses, or any combination.
Reporting and compliance
- The religious institution must submit an annual report to the South Carolina Housing Authority demonstrating compliance with the section.
Grandfathering for pre‑existing property owners
- A religious institution that owned property before July 1, 2025, may use any of its property (not limited to contiguous parcels) to build affordable housing and still qualify under this section.
Effective date
- The act takes effect upon approval by the Governor.
Who would be affected
- Primary:
- Religious organizations in South Carolina recognized as 501(c)(3) entities that own property and wish to develop affordable housing.
- Secondary:
- Local governments (potentially reduced property tax revenue on exempted parcels), affordable housing tenants, and housing authorities charged with monitoring compliance.
Potential impacts and considerations
- Positive:
- May increase affordable housing supply by leveraging church/religious property and encouraging public–private faith-based development.
- Simplifies tax treatment concerns that might otherwise discourage religious institutions from housing projects.
- Fiscal and administrative:
- Could reduce local property tax revenues on parcels used for qualifying projects; the magnitude depends on scale and local tax bases.
- Requires administrative oversight (annual reports) by the South Carolina Housing Authority to verify ongoing compliance.
- Legal and program details to clarify in implementation:
- How county median household income is determined and updated for rent calculations.
- How partial ownership (minimum 10%) is documented/maintained and what governance/asset control obligations an owning religious institution must satisfy.
- Interactions with existing local zoning, building codes, and land‑use regulations.
Recommendation
- Interested stakeholders (local governments, housing advocates, religious institutions) should monitor implementing guidance and consider model compliance/reporting templates. Verify the bill’s legislative status and any amendments in the South Carolina General Assembly.
Compiled from official sources — confirm details with the bill’s official record.
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