Housing Authority reluctantly forecloses

A nonprofit group whose mortgage default caused the city of Charleston to spend $1.4 million to buy a historic East Bay mansion is about to see another house it was restoring with government funds sold at foreclosure auction.

Elpis, an affiliate of the Rev. Dallas Wilson's Agape Ministries, had borrowed $45,000 from the Charleston Housing Authority in 2005 to renovate a house at 23 Aiken St. for use as affordable housing. The organization had previously successfully renovated 27 Aiken St. for similar purposes.

Elpis wanted to demolish the termite-damaged house at 23 Aiken and build on the site, but Charleston's Board of Architectural Review denied permission to demolish the 19th century single home. The Housing Authority granted Elpis several extensions on the loan, but eventually Wilson and others affiliated with the organization stopped responding to phone calls, mail and faxes, according to Housing Authority Director Don Cameron.

"In 22 years, this is the first time we've ever had a loan go bad," Cameron said. "It's sad that this has happened."

He said the authority is confident the loan money was used appropriately, because Elpis submitted invoices for work such as architectural services. Little work was actually done on the house, however, short of shoring it up with braces to keep the dilapidated building from falling down.

Read more in tomorrow's editions of The Post and Courier.