“Charleston Water System to reduce impact fees for affordable housing”

FOR IMMEDIATE RELEASE CONTACT

Tuesday February 1, 2006 Colleen Troy

Tammie Hoy

843-864-9800

Charleston Water System’s Affordable Housing Incentive Program

Charleston Tri County-

The Charleston Commissioners of Public Works, recently renamed Charleston Water System, are partnering with the Lowcountry Housing Trust (LHT), a Tri-County affordable housing non-profit to reduce impact fees for developers who build affordable housing in the system’s service districts. Developers and builders could save as much as $1,000 per residential unit developed.

The intent of the program is to provide private and public sector builders and developers with regulatory relief and financial incentives to produce affordable housing in the Tri-County area; a special focus is serving low and very-low income households.

The joint effort between Charleston Water System and LHT not only reduces costs for the developers of affordable housing, it also creates units that are less expensive to the end renter or homebuyer.

“We understand that impact fees affect the cost of housing… this is our way of trying to help the growing need for a more affordable product. We want to encourage more affordable housing in our service area. It’s our way of contributing to the effort,” said John Cook, CEO of Charleston Water System.

Housing affordability continues to be a critical issue in the Tri-County community, as most of the areas that Charleston Water System serves have seen median housing prices escalate more than 35% in just the past five years. Charleston Trident Association of Realtors reported a median sale price for 2005 over $189,000.

The Lowcountry Housing Trust works to identify funding options and incentives that encourage affordable housing development throughout the Tri-County. As part of this effort, LHT has partnered with Charleston Water to develop the fee reduction program. LHT will administer this program on behalf of Charleston Water.

“Part of our mission is to help the market deliver a more affordable product. If we can create incentives that encourage the private sector to produce affordable housing, there is less need for additional subsidies. We must be creative in meeting housing needs. The partnership with Charleston Water is a unique opportunity for the public and private sector to create a market rate incentive that can make a difference and set an example for others to follow,” said Tammie Hoy, LHT’s Executive Director.

LHT’s goal is to implement this program by April 2006.