S.C. Code Ann. § 31-1-610
Control of rentals
Operative Text
The director shall fix the maximum rental or charges per room to be charged the tenants of the housing accommodations furnished by any limited dividend housing corporation. Such maximum rental or charges shall be determined upon the basis of the actual final cost of the project containing such rooms so as to secure, together with all other income of the corporation, a sufficient income to meet all necessary payments to be made by the corporation as herein prescribed and such room rental rates or charges shall be subject to revision by the director from time to time. Letting, subletting or assignment of leases of apartments in such housing accommodations at greater rentals than prescribed by the order of the director are prohibited and all such leases will be void for all purposes.
Under S.C. Code Ann. § 31-1-610, the director of the relevant state authority is empowered to set a ceiling on the rent or charges that a limited dividend housing corporation may collect per room in its housing accommodations. That ceiling is calculated based on the actual final construction cost of the project, calibrated so the corporation earns enough to cover its required financial obligations. Any lease, sublease, or assignment that exceeds the director-approved rental rate is explicitly prohibited and rendered void under this provision.
Plain English — not legal advice.
Operators of limited dividend housing corporations in South Carolina must ensure that all rents and charges per room remain at or below the maximum established by the director under § 31-1-610. Because the director retains authority to revise those rates over time, compliant operators generally monitor for any updated orders and adjust their rent schedules accordingly before executing new leases or renewals. Leases executed above the approved rate are void by operation of law, meaning the corporation cannot enforce them and may face the loss of rental income it was counting on.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 31-1-610 gives tenants in limited dividend housing corporation properties a meaningful protection: any lease or sublease charging more than the director-approved maximum is legally void. Tenants who believe they are being charged above the approved rate may consider raising that violation as a defense in any eviction or collection proceeding, or contacting a tenant-rights organization familiar with South Carolina housing law for guidance on available options. Because the director's orders are subject to periodic revision, tenants can also inquire with the relevant state authority to confirm what the current approved rental rate is for their specific housing project.
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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