Press Releases
State Housing Authority Wins National Housing Award - 11/10/2008
The South Carolina State Housing Finance and Development Authority has won a national award for a program to keep 830 affordable housing units available to families and the elderly in the rural areas of South Carolina.
In a first of its kind program, the Authority bundled a number of properties into a single multi-family, tax-exempt bond deal to finance the purchase and refurbishment of the units and maintain their status as “affordable properties.” Affordability restrictions, stipulations that keep rents within the range of low and moderate income residents, typically last 30 years. Restrictions on the some of the properties included in the deal were set to expire in 2008 and the units would have been sold or demolished, effectively removing them from the existing stock of affordable housing. By issuing bonds for $27 million the Authority was able to facilitate the purchase of the units and renew the restrictions for an additional 30 years. The properties were primarily garden-style complexes that were built in the late 1970s and early 1980s. Although the developments have an average occupancy rate of 95% or higher, the buildings were approaching the “end of their lives” and were in need of rehabilitation and renovation. Ultimately, twenty-three multi-family properties in rural areas of 15 counties across South Carolina were bundled into a single bond issue and transferred to new ownership, which extended the restrictions for another 30 years. The bond issuance also allowed for the rehabilitation and modernization of these units.
The award was presented at the National Council of State Housing Agencies’ annual conference held this year in Denver, Colorado.
“It’s this kind of innovation on which we pride ourselves,” said Valarie Williams, Director of the State Housing Authority. “We hope we are able to demonstrate the effectiveness of using this type of transaction to preserve affordable housing across the state, especially in rural areas where it is already a scarce commodity.” According to Williams, the Authority is currently working on the next phase of this venture, another pooled transaction slated to purchase and preserve 45 developments with an anticipated bond issuance of $61,505,000. “We hope other states are able to use this as a template to preserve their affordable housing stock,” said Williams.
On average each unit was planned to undergo $18,000 to $20,000 in rehabilitation, resulting in dramatic improvements in aesthetics and livability within these communities. Some of the buildings have already been placed in service and the remainder are expected to be placed in service by the end of 2008. All units are anticipated to serve households earning no more than 60 percent of area median income.
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