For Immediate Release November 29, 2006
Media Contact: Tammie C. Hoy, Executive Director tammie@lowcountryhousingtrust.org 843-973-7285 office 843-864-9800 cellular
$54,000 AND COUNTING: SAVINGS DIRECTLY IMPACT HOUSING COST
CHARLESTON WATER AFFORDABLE HOUSING INCENTIVE PROGRAM CHARLESTON, SC – In March 2006, Charleston Water System and the Lowcountry Housing Trust announced a first-of-its-kind program to encourage developers to build housing that more Lowcountry residents could afford. The Affordable Housing Incentive Program reduces and delays impact fees for developers who build lower-priced housing in Charleston Water’s service districts in Charleston, Berkeley and Dorchester counties. Developers and builders can save as much as $1,000 per residential unit and delay the payment of impact fees which can soar into the hundreds of thousands of dollars for one development. To date the Affordable Housing Incentive Program, which is administered by the Lowcountry Housing Trust, has reduced impact fees for area developers by a total of more than $54,000. Housing affordability continues to be a critical issue in our community, as most of the areas that Charleston Water System serves have seen median housing prices escalate more than 35 percent in just the past five years. Charleston Trident Association of Realtors reported a 2005 median home sales price was over $214,000. This joint effort between Charleston Water and LHT not only reduces costs for the developers of affordable housing, but it also creates units that are less expensive to the renter or homebuyer. Ivy Ridge Apartments, a housing development in the works by The Humanities Foundation, will be one of the first projects in line to take advantage of this program. The 72-unit development’s impact fees will be reduced by approximately $35,500 and the impact fees will not have to be paid until the development is ready to connect to Charleston Water’s water and wastewater system. The one-, two-, and three-bedroom apartments will range in price from $452 to $624 per month. The average monthly rent in the Lowcountry for a two-bedroom, two-bathroom, unfurnished apartment, excluding all utilities except water, is approximately $746. “Part of our mission is to help the market deliver a more affordable product. If we can create incentives that encourage the private sector to produce affordable housing, there is less need for additional subsidies. We must be creative in meeting housing needs. The partnership with Charleston Water is a unique opportunity for the public and private sector to create a market rate incentive that can make a difference and set an example for others to follow. We applaud Charleston Water for its efforts on behalf of the hardworking Lowcountry residents,” said Tammie Hoy, LHT’s Executive Director. “We’re glad for the opportunity to work with the Lowcountry Housing Trust to encourage affordable housing development in the Lowcountry,” said Charleston Water System CEO Kin Hill, P.E. “This program is a great example of the difference we can make in our community by working together.”
The Lowcountry Housing Trust is a regional non-profit organization that provides a dedicated source of funding to stimulate the creation, rehabilitation and preservation of affordably-priced housing in the Tri-county area. The Trust works with each area municipality and local government agencies to identify funding sources. More than 300 housing trust funds operate nationwide. To learn more about the Trust visit www.lowcountryhousingtrust.org More information about Charleston Water System is available at www.charlestonwater.com.