South Carolina Rent Increase Limits

South Carolina Housing announced earlier this year that rent increases in excess of 5% annually on all properties may not be approved, which may have led to some confusion.  However, after discussion with the South Carolina Housing LIHTC Compliance Department, they released further clarification that this only applies to properties awarded in 2020 or later, as it was incorporated into the fine print of the 2020 QAP, under Section 7 of the Compliance Monitoring Procedures, Paragraph B.  This is an important talking point for senior management and owners to discuss and clarify in their modeling and budgeting for new properties now coming online this year or future years in South Carolina, as it may be more important than ever to lease-up at the highest allowable rents. 

More information, including copies of the QAP may be found at https://www.schousing.com/home/HousingTaxCredits.