South Carolina continues to experience rapid growth, ranking as the fastest-growing state in the US in 2023 and reporting $8 billion in economic investment in 2024. Consequently, some local governments are struggling to accommodate that growth and are turning to measures such as development moratoriums. In other areas, lawmakers are witnessing their communities transform almost overnight and, as we discussed several weeks ago, they are calling for additional tools local governments can employ to balance that growth.
Transferrable Development Rights Bill gains support in House
Last week, Representative Mark Smith (Berkeley) filed H. 4146 — a bill that would authorize and encourage local governments to voluntarily adopt Transferable Development Rights (TDR) programs. This is a bill we discussed in depth last year as another tool to help local governments accommodate growth in accordance with their Comprehensive Plan.
This bill encourages local governments to voluntarily adopt Transferable Development Rights (TDR) programs that could be customized to fit local needs, such as protecting farmland and other environmentally sensitive areas, while guiding development where infrastructure already exists and where density is best absorbed. You can read about how these programs work here.
A companion bill has already been introduced in the Senate by Senators Michael Johnson (York) and Ross Turner (Greenville).
Concurrency Bill (S.227) receives hearing
Last Wednesday, March 5th, the Senate Labor, Commerce, and Industry Subcommittee took up the Concurrency bill (S.227), which empowers local governments to adopt ordinances that ensure infrastructure keeps pace with new development. The strictly permissive nature of this bill captured the attention of committee members such as Senator Josh Kimbrell (Spartanburg), who touted this bill as a means to helping manage explosive growth in Boiling Springs. While the subcommittee did not take action on the bill, we expect them to meet again and continue the conversation.
If you want to listen to great dialogue about how our state can manage growth, I encourage you to watch the hearing by visiting the Video Archives page of the Statehouse website.
Other land use bills on the move
The Low-Income Housing Property Tax Exemption bill (S.125), which adjusts tax credits for properties owned by nonprofit housing entities based on percent ownership in the property, has passed the Senate, was introduced in the House, and has been assigned to the House Ways and Means Committee.
The Farm Annexation bill (S.264), which prevents annexation of farm properties without consent from the property owner, followed suit and passed the Senate as well. It has also been assigned to Ways and Means, which we expect to start taking up bills again after getting the budget out of committee and through the floor voting process.
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