This text of South Carolina § 48-62-340 (Issuance of loans; criteria and conditions; qualification.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(A)In the issuing of loans, the authority must:
(1)prioritize the buyout of blocks or groups of homes rather than individual homes so that no more than fifteen percent of funds disbursed in a fiscal year go toward individual home buyouts;
(2)prioritize buyouts of single-family primary residences and multifamily residences;
(3)consider the availability of additional funding sources leveraged by a project;
(4)prevent the use of the fund for homes built after July 1, 2020;
(5)prevent the use of the fund for proposed projects that involve the use of eminent domain; and (6) prioritize the use of the fund for low- and moderate-income households making less than one hundred twenty-five percent of the median household income in the jurisdiction of the eligible fund recipient.
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(A) In the issuing of loans, the authority must: (1) prioritize the buyout of blocks or groups of homes rather than individual homes so that no more than fifteen percent of funds disbursed in a fiscal year go toward individual home buyouts; (2) prioritize buyouts of single-family primary residences and multifamily residences; (3) consider the availability of additional funding sources leveraged by a project; (4) prevent the use of the fund for homes built after July 1, 2020; (5) prevent the use of the fund for proposed projects that involve the use of eminent domain; and (6) prioritize the use of the fund for low- and moderate-income households making less than one hundred twenty-five percent of the median household income in the jurisdiction of the eligible fund recipient. (B) The authority must issue loans using the following criteria and conditions: (1) offer a funding package of grants and loans for a particular project that carries an overall effective interest rate equivalent to no higher than forty percent of the market interest rate as defined by the ten-year United States Treasury Yield Curve; (2) make a portion of each loan available as a grant not requiring payment as a financial incentive to reduce the loan amount, that portion being no greater than twenty-five percent and no less than five percent of the total project disbursement, to incrementally reward those eligible fund recipients that execute beneficial flood mitigation practices. To qualify for a grant, eligible fund recipients must execute one or more of the following beneficial flood mitigation practices: (a) ensuring residents relocate outside of the floodplain; (b) aiding residents in relocating outside of the floodplain and within the tax base; (c) aiding residents in relocating outside of the floodplain within an area designated as an opportunity zone; (d) conducting floodplain restoration after the property is converted to open space to reestablish the full water storing benefits of the floodplain; (e) completing a buyout of an area larger than ten acres; and (f) other activities as deemed appropriate by the authority so long as they contribute to flood resilience in the community of the buyout; (3) require that acquired properties are returned to open space and that all future development on the parcel is prohibited in perpetuity through easement or restrictive covenant; and (4) prohibit the use of more than five hundred thousand dollars for each housing unit receiving loan funds. (C) Eligible fund recipients may apply for loans from the fund to complete: (1) buyouts of repetitive loss properties; (2) buyouts of repetitive loss properties with land intended for floodplain restoration; and (3) floodplain restoration in connection with buyouts funded through other mechanisms. (D) In order to qualify for a loan, eligible fund recipients must apply to the authority and, at a minimum, meet the following criteria: (1) for buyouts of repetitive loss properties: (a) identify specific properties included in the proposed project; (b) demonstrate how the properties qualify as repetitive loss properties; (c) identify a plan and timeline for returning the property to open space within six months following the completion of the buyout and holding an easement or restrictive covenant on the land in perpetuity; (d) complete an economic assessment to show the costs and benefits of the project; and (e) identify any beneficial flood mitigation practices planned for the project; (2) for buyouts of repetitive loss properties with land intended for floodplain restoration: (a) identify specific properties included in the proposed project; (b) demonstrate how the properties qualify as repetitive loss properties; (c) identify a plan and timeline for returning the property to open space within six months following the completion of the buyout and holding an easement or restrictive covenant on the land in perpetuity; (d) complete an economic assessment to show the costs and benefits of the project; (e) submit a plan for conducting floodplain restoration; and (f) identify any additional beneficial flood mitigation practices planned for the project; (3) for other floodplain restoration: (a) submit a plan and timeline for conducting floodplain restoration; (b) identify a plan and timeline for holding an easement or restrictive covenant on the land in perpetuity; (c) complete an economic assessment to show the costs and benefits of the project; and (d) identify any additional beneficial flood mitigation practices planned for the project; and (4) any additional criteria required by external grants contributing to the fund. (E) Financial criteria also must be met pursuant to the standards set by the authority. The authority may require additional criteria and exercise discretion in issuing loans.