Nonprofit in arrears on loan

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 a house it was restoring 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 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."

Around the time the Housing Authority loan fell into arrears, Elpis was defaulting on its mortgage on an East Bay Street mansion known as the Josiah Smith Tennent house.

Charleston had given the property to Elpis, back when the house was just a vacant shell, and the organization received around $1 million in government funds to restore the house as a community service center.

The city bought the restored property for $1.4 million in March as it was headed for foreclosure auction, and hopes to use it for its intended purposes.

At the time of the Tennent house loan default, repeated attempts by The Post and Courier to interview Wilson about the situation were unsuccessful.

Reached Wednesday by phone, Wilson spoke very briefly about Elpis' financial troubles.

"It's fallen on tough times, as an organization," Wilson said.

"We write grants and raise funds. Just not being able to raise funds is what it's all about."

The Housing Authority has foreclosed on 23 Aiken but was the only bidder when the property went through a first round of foreclosure sale bidding.

The property is scheduled for auction today, with a minimum bid of $55,944.39, representing the principal and interest owed to the Housing Authority.

"If we end up being the proud owner, we will have to think of something constructive to do," Cameron said.

Eddie Bello, urban design and preservation architect for the city, said that since the BAR denied permission to demolish 23 Aiken, city code inspectors have declared it a threat to human safety.

"If they still own it, they could tear it down," he said.

Reach David Slade at 937-5552 or dslade@postandcourier.com.