S.C. Code Ann. § 31-3-530
Management and operation of housing projects; profits unlawful
Operative Text
It is hereby declared to be the policy of this State that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with providing decent, safe and sanitary dwelling accommodations and that no housing authority shall construct or operate any such project for profit or as a source of revenue to the city. To this end an authority shall fix the rentals for dwellings in its projects at no higher rate than it shall find to be necessary in order to produce revenues which, together with all other available moneys, revenues, income and receipts of the authority from whatever sources derived, will be sufficient (a) to pay, as they become due, the principal and interest on the bonds of the authority, (b) to meet the cost of, and to provide for, maintaining and operating the projects, including the cost of any insurance, and the administrative expenses of the authority and (c) to create, during not less than the six years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on such bonds in any one year thereafter and to maintain such reserve.
Under S.C. Code Ann. § 31-3-530, South Carolina housing authorities are required to manage and operate their housing projects efficiently and to set rents at the lowest rates that still allow the authority to cover its financial obligations. Those obligations include repaying bond principal and interest, covering operating and maintenance costs, and building a reserve fund during the first six years after issuing bonds. Critically, the provision prohibits housing authorities from running projects for profit or as a revenue source for the city.
Plain English — not legal advice.
Housing authorities operating under S.C. Code Ann. § 31-3-530 are expected to set dwelling rents no higher than what is necessary to meet defined financial obligations—bond repayment, operating costs, insurance, administrative expenses, and required reserves. Compliant authorities regularly review their revenue streams and expenditures to ensure rents remain at the lowest sustainable level rather than generating surplus profit. Operators document that rental rates are tied directly to these enumerated cost categories and not to any profit motive or municipal revenue goal.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
S.C. Code Ann. § 31-3-530 establishes a clear state policy that public housing rents must be kept as low as possible while still covering the authority's legitimate costs, and that authorities are expressly prohibited from charging rents designed to generate profit. Tenants in South Carolina public housing who believe their rents exceed what is necessary to meet those defined costs may raise this provision when engaging with their local housing authority or when seeking review through appropriate administrative channels. Tenant-rights organizations familiar with South Carolina housing law can help residents understand how this policy applies to their housing authority's rent-setting practices.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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