Affordable city condos draw dozens of applicants
Additional stories
Long list: reopening waiting list for affordable housing, published 10/12/08
Condo development might be ready in March, published 08/25/08
Condos finally to go up; Long-delayed work set to begin on affordable housing, published 10/10/07
Hoping to purchase a new condominium on the Charleston peninsula for as little as $112,500, at least 60 people showed up Tuesday morning at the Galliard Auditorium to learn how to get one.
The city has 42 condos for sale in a compact new development called The Cottages at Longborough, and is offering them to middle-income, first-time home buyers. Those who have not owned a home in at least three years count as first-time buyers.
The offering attracted a wide range of applicants, from parents with young children to married couples approaching retirement age. Some came in nurse's scrubs, Sheriff's Office uniforms and the work clothes of city parking garage attendants.
"It's a great opportunity," said Trischia Khouri, a systems analyst at Medical University of South Carolina, who currently rents an apartment for herself and her 12-year-old son. "I drove by them the other day, and they're beautiful."
The condos are at 10th and Alberta streets, in a popular neighborhood a few blocks north of Hampton Park where single-family homes can sell for five times the price of the city's condos.
"You can walk right down to the Ashley River and Hampton Park," said Luther Smith, who along with his wife, Joanne, works at The Citadel and rents a home in West Ashley.
They submitted an application Tuesday, and Luther Smith was very pleased.
"Every day we'll be able to drive past our new house, while they finish it," he said.
The condos were built under a special arrangement with The Beach Company, which agreed in 2001 to build and sell to the city a certain amount of affordably-priced housing. At the time, The Beach Company was controversially demolishing the Shoreview low-income apartment complex, which it owned, in order to develop the single-family homes that are now Longborough.
Now, the city is selling the resulting condos at cost, which means the buyers will get a new 2-or 3-bedroom condo for $125 a square foot.
While there's no direct cost to the city, Charleston is using federal community development grant funds to kick in a $10,000 forgivable down payment loan for each buyer. Resale restrictions limit the possibility of windfall profits for those who later sell, to ensure that the condos remain affordable for future buyers.
With income limits generously set at 120 percent of the area median income, potential buyers can earn more than most people in the region and still qualify for the affordable housing.
For example, a family of four could earn just over $70,000. A single person could earn up to $49,000. Buyers also would have to qualify for a traditional, fixed-rate bank loan, but with the city's help they could make a down payment of just $2,500.
Sheryl Tuttle collected and later submitted a mortgage application Tuesday for her son, a Charleston police officer who was on duty.
"I'm so thrilled," she said. "I didn't have this 30 years ago when I went to buy a home."
At least eight of the condos were earmarked for pre-qualified buyers whose names were on city waiting lists for many years, but the rest are being allocated on a first-come, first-served basis.
More than 100 applications were submitted Tuesday, but Geona Shaw Johnson, director of Charleston's Department of Housing and Community Development, said that doesn't necessarily mean all the condos are spoken for. The mortgage applications still need to be reviewed and approved.
"We wouldn't discourage anyone from applying," she said.
The city and its banking partners will continue taking applications at Gaillard Auditorium, 77 Calhoun St., from 9 a.m. to 4 p.m. today and Thursday.
Turning in a completed mortgage application is the step that puts an applicant on the list.
Reach David Slade at 937-5552 or dslade@postandcourier.com.
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Comments
This article has 19 comment(s)
Posted by charleston1960 on October 15, 2008 at 7:30 a.m. (Suggest removal)
"a $10,000 forgivable down payment loan for each buyer."
LOL another government program that throws tax dollars away. What happended to the days when you worked hard to get the luxuries of life. Alas thay are gone!
Oh well, Mayor Riley, I am getting ready to buy my first home. I want 'a $10,000 forgivable down payment loan' to assist me. I am ready to procede where do I pick up my check? Also. I need the city's help to make a down payment of just $2,500.
Please do not discriminate against me because I want to live in another area. I just want the same kind of treatment you are giving to these future 'first-time buyers'
Posted by coolfreaknbeans on October 15, 2008 at 9:48 a.m. (Suggest removal)
I'm glad people have the chance to do this. On the flip side I certainly see charleston1960's point. I have a friend who wants to move here from VA. They have good credit,he is currently a police officer and they are struggling to get the loan and money to move here. I bet they sure as hell would love $10,000 to put down. Because as of now they need like $11,000 down!
Posted by downtownsurvivor on October 15, 2008 at 10:25 a.m. (Suggest removal)
People are struggling now! There is always going to be someone with their nose high who wants to make themselves feel better by saying something negative! I commend Joe Riley for this. It is about time affordable housing is being built in that community because the Beach Company are really full of it!
Posted by coolfreaknbeans on October 15, 2008 at 11:21 a.m. (Suggest removal)
I wonder how many will qualify for a home loan. I'm not trying to be a jerk but it's may harder now than ever. Innocent,hard working,bill paying people are struggling to get loans. Mostly because people making $30k a yr were getting $350,000 home loans they couldnt afford. My friends were told by one lender that they require a credit score of at least 740 and nearly debt free.(and these were just people trying for a very modest home loan!) I'm glad they built affordable housing. But look at it this way- I'd love to live on the beach,relaxing by the waves. But should someone(or the Gov't) help build me housing to fit my income? Because it's not fair and I wanna live there and don't make enough money to?
Posted by Larz13 on October 15, 2008 at 11:40 a.m. (Suggest removal)
While some good points have been made to the negative in this program, I think overall this is a good thing for our police and firefighters, nurses and others who are working hard without a large amount of financial reward.
This is much better than a place like Gadsden Green where those people pay next to nothing and stay there on the government's dime their entire lives (insert what you want while living there).
My thought would be to let the folks reap the rewards of homeownership and let them sell and keep the profit after a few years.
Posted by burton on October 15, 2008 at 11:46 a.m. (Suggest removal)
Great price for downtown but how many of the former Shoreview residents will be able to move back there? Not many as you can see by the response the housing dept has gotten. That's why the income level for the area median income was set at 120%. I know a non-profit group in Charleston that gives up to 40k in downpayment help!
Posted by coolfreaknbeans on October 15, 2008 at 11:49 a.m. (Suggest removal)
40k in downpayment help?! Holy Cow!
Posted by MR_PRETTY on October 15, 2008 at 12:01 p.m. (Suggest removal)
we have shelter, clothing, health and strength, we are blessed! we're bless, we're bless, we're bless, we are bless, yes we don't deserve it but yes we're bless!
Posted by letstakeawalk on October 15, 2008 at 1:10 p.m. (Suggest removal)
My sister and I both went down there to apply. We're both college educated, and I have almost 10 years working for myself in the tourism industry. I've rented downtown for 14 years, mostly because my job requires me to be Downtown at a moment's notice. I figure I've spent about $108,000 on rent in that time - there's no reason that that money couldn't have been applied to a mortgage (I guess it was - the landlord's!).
I was very impressed with all of the applicants that I saw; at quarter-to-nine in the morning everyone was well dressed and very polite. I actually felt underdressed because I wore a t-shirt instead of a button-down and tie!
The housing looks better than many of the condos my sister had been considering at 2x the price - specifically the new developments out past the new St. Francis Hospital in West Ashley. They're way nicer than the place my friends just bought in the development next to West Ashley High.
This is a great program, and I hope that future developments are required to set aside similar allotments. The article is in error, however. Only 34 condos are available because 8 have already been spoken for.
Posted by GG on October 15, 2008 at 1:48 p.m. (Suggest removal)
Affordable housing for the "working poor" is a farce in the Charleston and Mt. Pleasant areas.
My daughter fits the "working poor" category. She works for the city. She is in her mid-30's and is a very responsible person. She owns an older vehicle and has no credit cards. But to pay her rent and all the bills that go with a house, she practically lives month to month.
She put in an application for one of these condos, but I am afraid that since she is a single person, she will be unable to purchase one.
Charleston County needs to expand these types of housing projects and get rid of the slum lords.
Posted by Siava on October 15, 2008 at 1:49 p.m. (Suggest removal)
"Those who have not owned a home in at least three years count as first-time buyers."
This makes no sense to me. If you've owned a home, EVER, you've owned a home. Period. Allowing previous home owners to qualify as "nevers" is a slap in the face to those who have actually never gone through the home buying process.
Posted by mypointofview on October 15, 2008 at 2:03 p.m. (Suggest removal)
It is beyond my scope of thought where this entitlement mentality comes from. Yes, I would like to live on the peninsula too, particularly with a water view. BUT, I was raised in a family where it was COMMON KNOWLEDGE that one had to work for what one WANTS. If you want to live better than you presently live, you have educate yourself and find a JOB that facilitates an income sufficient to buy what you WANT. Neither the government nor society (read: taxpayer) owes you anything. This is one more example of the socialist direction in which this country is rapidly moving. This I DESERVE attitude needs to be quashed.
Posted by GreenvilleGirl on October 15, 2008 at 3:15 p.m. (Suggest removal)
Don't be too critical of this program and the available financing. It sounds like the financing provided by SC State Housing. They have great programs, if you're willing to go through some additional paperwork and be patient. The programs are geared toward low to moderate income households; there are also programs for single parents, individuals or families living with a disability and others.
There are limits to the maximum price of a house, and the max. price varies between counties.
As for the down payment grant, it's not that unusual, if you look for these funds AND you meet the requirements. As the article says, there are stipulations and conditions under which you accept the funds, and on what grounds they would have to be repaid.
www.sha.state.sc.us is the web address.
Posted by holly123 on October 15, 2008 at 3:15 p.m. (Suggest removal)
What ever happened to "highest and best use" when it comes to real estate. These lucky buyers will not have to pay taxes at the rate that we could have gotten from buyers actually paying for the location.They will use the schools, services etc. but pay much less than their n'bors.
Posted by Rebel_Yell on October 15, 2008 at 3:16 p.m. (Suggest removal)
It's an improvement to what was there but it's still quasi-socialism. Let them pay what the condos are worth and reduce my taxes with any profit made. The whole thing violates that little old saying in the constitution "equal protection under the law" since it discriminates bewteen homeowners and non-homeowners and there is no compelling interest to do so (they may both have the same income). I'm sure if a homeowner challenged it, an exception would be made for that person to avoid the City losing in Court. The tougher issue is whether discriminating based on income is a compelling interest but since the wealthier already pay a higher income tax percentage, I'm sure the hand out would still survive. Market value be dammed!
Posted by IPFreely on October 15, 2008 at 4:30 p.m. (Suggest removal)
They will become slums as they always end up
Posted by charlestongirl on October 15, 2008 at 4:48 p.m. (Suggest removal)
Doesn't Riley own The Beach Company?
Posted by gencon1 on October 15, 2008 at 5:59 p.m. (Suggest removal)
The thing these people don't realize is that they can't ever sell the condo's for a profit. it's just a glorified way to pay rent. There is no real profit alloweed when you sell.
Posted by letstakeawalk on October 15, 2008 at 10:06 p.m. (Suggest removal)
@ Holly123
I'd like to point out that living in rental property, I have paid the property taxes, which includes the assessment for schools, for the past dozen years. I'm single, and have no children. If I am fortunate enough to aquire one of these nice condos, I will be exempt from paying the school taxes, as the property will be owner-occupied. I still won't have any kids (a least not in the near future).