Bill > H3469

This bill introduces the Accessory Dwelling Unit Affordable Housing Incentive Act, which creates a property tax exemption for homeowners who add an Accessory Dwelling Unit (ADU) - a secondary housing unit on the same lot as a primary residence - and rent it affordably. To qualify, homeowners must earn less than 250% of their county's Area Median Income (AMI), rent the ADU to a tenant earning 80% or less of the county's AMI, comply with local zoning regulations, maintain the ADU as affordable housing for at least ten years, and accept Section 8 housing payments. Homeowners must provide annual documentation proving compliance, including lease agreements and tenant income verification. If the property is sold within ten years, the tax exemption can transfer to the new owner if they maintain the existing lease. Failure to comply results in the property being reassessed to include the ADU's value, with retroactive taxes potentially being due, and loss of the tax incentives. The bill will take effect upon the Governor's approval and will first apply to property tax years beginning after 2024, providing a financial incentive for creating affordable housing options in South Carolina.