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Everyone says my husband has to give up his parental rights in order for the state to help place her in a group home.
It sounds like you are dealing with a child who has severe mental illness, and who is far from able to care for herself in the absence of a structured environment. In some contexts it is possible to let a minor live independently, but it sounds like that would be a recipe for disaster with your stepdaughter.

There is no mechanism by which the state will allow a parent to simply give up his rights in order to walk away from any obligation to support or care for a child.

South Carolina has passed legislation that addresses when and under what circumstances a minor may be involuntarily committed for mental health treatment.

There are private "therapeutic boarding schools" that will accept a mentally ill child for residential care and treatment, but they tend to be very expensive.

Is she presently under the jurisdiction of a juvenile court?