The Homeownership Initiative

The Homeownership Initiative is an exciting program designed to ensure that residents from diverse economic backgrounds share in the American dream of homeownership.

The Department of Housing and Community Development works closely with non-profit developers to implement the Homeownership Initiative (HI).

Introduction
The Homeownership Initiative, as currently designed, will provide a combination of 133 newly constructed and rehabilitated homes for sale to low- and moderate-income families in five neighborhoods of the City. This effort is designed to achieve three primary goals:

1. to provide affordable homeownership opportunities to low, moderate and middle income families


2. to increase homeownership and stimulate revitalization in the targeted areas


3. increase the capacity of nonprofit community development organizations to develop and market for-sale housing

In addition, the Initiative aims to preserve the affordability of housing and character of these diverse neighborhoods on Charleston's peninsula that are being revitalized but under increasing pressure of gentrification.

Redevelopment Plan Overview
To address the blighted conditions that exist and to facilitate the purchase of homes by low- and moderate-income families in the targeted neighborhoods, the City is implementing the Homeownership Initiative. The plan:

1. acquire properties through direct purchase and eminent domain pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA)


2. transfer the properties to nonprofit housing development organizations that will develop and sell the units to eligible low- and moderate-income homebuyers

Funding for the Homeownership Initiative is provided by a variety of local, state, federal and private sources. These funds make the aquisition and development of property possible.

Targeted Area
The Homeownership Initiative will be carried out in five peninsular neighborhoods:

1. Cannonborough
2. Elliottborough
3. the West Side
4. H, F and I Streets
5. the East Side

All five neighborhoods are also part of the City’s HUD-designated Renewal Community and Neighborhood Revitalization Strategy Area.

Area Description
The five targeted areas are located in the middle portion of Charleston’s peninsula. The general boundaries of the Homeownership Initiative area are Bee, Morris and Mary Streets to the south; Congress Street (west of Meeting Street) and the Crosstown Expressway (east of Meeting Street) to the north; Hagood Avenue to the west; and East Bay Street, Jackson Street and Meeting Street to the east.

Area Demographics
Basic data from the 1990 Census provides a picture of the Homeownership Initiative area.

• population is 15,905
• comprised of 3,292 families
• 45% of residents live in poverty
• 52% of female-headed households live in poverty
• median income is $11,769, compared to $14,572 for the peninsula as a whole.

The Challenge
The Homeownership Initiative target area presents 3 unique problems and opportunities in terms of housing redevelopment.

1. The area contains a high percentage of vacant, dilapidated units. Approximately 18% or 1,323 of the houses in the Homeownership Initiative target area are vacant compared to 4.4% throughout the City.
2. There is a very low homeownership rate in the area.Only 29% of households own their homes, compared to 48% for the City of Charleston, 58% for Charleston County and 70% statewide.
3. The area is experiencing rapidly increasing housing costs. The 1990 Census showed that the median value of a home on the peninsula was $119,560, a price that is almost double that of the state median of $61,100. MLS data for February 2000 shows an average sales price of a home on the peninsula at $481,793, well above the means of low- to moderate-income families. In addition, the 1999 fair market rent for a three-bedroom unit was $710, comparable to the mortgage for a similarly sized single family home.

Development
The Homeownership Initiative entails five basic development types that will result in affordable homeownership opportunities in the targeted areas. The chart below lists the five development types and the number of units currently proposed to be developed under each development type. (Note that the current number is less than 200 given market conditions; however, the total may go up or down as these market conditions change.)

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