Senate Finance Committee Amendment
S 739 - Session 125 (2023-2024)
SC Housing Tax Credit

The Committee on Finance proposes the following amendment (SF-739.CH0003S):

Amend the joint resolution, as and if amended, by striking SECTION 1 and inserting:

SECTION 1.The General Assembly hereby provides a one-time authorization of South Carolina Housing Tax Credits pursuant to and for the purposes described in this Joint Resolution in an amount necessary but not exceeding $29,806,029, comprised of $12,889,152 remaining available from the one-time authorization of South Carolina Housing Tax Credits provided in Section 1.B.1 of Act 202 of 2022, and a total of $16,916,877 remaining available for allocations for the tax year ending December 31, 2023, pursuant to Section 12-6-3795. In addition to the foregoing, the General Assembly hereby authorizes pursuant to and for the purposes described in this Joint Resolution an amount necessary but not exceeding $25,000,000 from the undesignated balance  held in the South Carolina Housing Trust Fund established pursuant to Article 4 of Chapter 13, Title 31 of the South Carolina Code, as non-recurring, one-time funding, and not as South Carolina Housing Tax Credits. No later than June 30, 2023, the State Housing Finance and Development Authority must develop a plan to allocate the South Carolina Housing Tax Credits and non-recurring, one-time funding made available pursuant to this Joint Resolution as supplemental financial support to certain multi-family housing projects that had by March 31, 2023, received a tentative allocation of South Carolina Housing Tax Credits pursuant to Act 202 of 2022. The plan, and any project allocations proposed thereunder, must be submitted to the Joint Bond Review Committee for review and comment prior to awarding any South Carolina Housing Tax Credits or non-recurring, one-time funding made available pursuant to this Joint Resolution.

Amend the joint resolution further, by striking SECTIONS 3 and 4 and inserting:

SECTION 3.Any supplemental South Carolina Housing Tax Credits or non-recurring, one-time funding made available pursuant to this Joint Resolution must be limited to the amount necessary to provide supplemental financial support to projects that (1) are under construction; and (2) have demonstrated independently-verified costs exceeding original estimates as a consequence of escalations in costs of construction and materials, increases in interest rates, and such other extenuating factors as may be recommended by the State Housing Finance and Development Authority, subject to the review and comment of the Joint Bond Review Committee; provided, however, that no single project may receive an allocation of more than the lesser of (1) the actual amount of South Carolina Housing Tax Credits and non-recurring, one-time funding made available pursuant to this Joint Resolution necessary to achieve financial feasibility of the project based on the independently verified costs exceeding the original estimate for the project; or (2) twenty percent of the South Carolina Housing Tax Credit reflected on the eligibility statement, as defined in Section 12-6-3795(A)(1), previously furnished for the project by the State Housing Finance and Development Authority; further provided, however, that the State Housing Finance  and Development Authority may recommend, subject to the review of the Joint Bond Review Committee, a de minimus adjustment not exceeding five percent beyond the limitations of this SECTION to promote financial feasibility of the project in marginal circumstances. Project sponsors must have requested consideration of and provided justification for any costs in excess of original estimates to the State Housing Finance and Development Authority no later than March 31, 2023.

SECTION 4.The plan must conform with such provisions of the Qualified Allocation Plan and the State Ceiling Allocation Plan as the State Housing Finance and Development Authority may recommend to be applicable to any supplemental South Carolina Housing Tax Credits or non-recurring, one-time funding made available pursuant to this Joint Resolution; provided, however, that priority must be given to projects with highest rates of completion and earliest dates that the projects are expected to be placed in service. 

Amend the joint resolution further, by striking SECTION 6 and inserting:

SECTION 6.The State Housing Finance and Development Authority may require, as a condition of any supplemental South Carolina Housing Tax Credits or non-recurring, one-time funding made available pursuant to the plan required by SECTION 1 and this Joint Resolution, an agreement from the project sponsor that the South Carolina Housing Tax Credits and any non-recurring, one-time funding allocated to the project are deemed final, without recourse. 

Amend the joint resolution further, by adding an appropriately numbered SECTION to read:

SECTION 10. In addition to the other amounts made available by this Joint Resolution, the General Assembly hereby authorizes the State Housing Finance and Development Authority to allocate an amount necessary but not exceeding fifty percent of the federal low-income housing tax credit allocated to this state for the tax year ending December 31, 2023, as supplemental  financial support to certain multi-family housing projects utilizing federal 9% tax credits as defined in Section 12-6-3795(A)(7) that had by March 31, 2023, requested consideration of and provided justification for any costs in excess of original estimates to the State Housing Finance and Development Authority. Any allocations of federal tax credits made pursuant to this SECTION must be included and coordinated within the plan required pursuant to SECTION 1, and are subject to, without limitation, the same requirements, determinations, limitations, and other provisions as are applicable to the State Housing Tax Credits included in SECTIONS 1 through 7, of this Joint Resolution.