Michaels JV to Build $44M Affordable Charleston Project
Units will be reserved for individuals earning at or below 50 percent of the AMI.
A joint venture of The Michaels Organization, Spandrel Development and One80 Place will build a $44 million, 87-unit, permanent affordable housing project in Charleston, S.C., set to serve exclusively homeless families and individuals.
The development crew consists of general contractor Choate Construction and designer LS3P. According to prepared remarks by Spandrel Development Co-Founder Emanuel Neuman, the project has been in the planning stages for seven years.
Rising six stories, the community will comprise 70 studio, one- and two-bedroom units, as well as 17 transitional housing apartments for women and children. The first floor will provide amenities and office space for non-profit entities, while the second floor will contain the transitional units. Levels three through six are slated to comprise the remaining apartments, which will also benefit from Section 8 Vouchers.
READ ALSO: Turning Vacant Properties Into Affordable Housing
One80 Place will provide supportive services to future residents, including healthcare, legal services, tenancy support and case management. The non-transitional units will be reserved for residents earning up to 50 percent of HUD Area Median Income and spend no more than 30 percent of income on rent.
The project will take root on a vacant lot at 573 Meeting St. in downtown Charleston. Within 1 mile, future residents will have access to a park and two transit stops. Additionally, One80 Place operates a shelter adjacent to the project.
According to Yardi Matrix data, financing for the project included $17 million in tax-exempt bonds issued by the South Carolina State Housing Finance and Development Authority with U.S. Bank as trustee, a $3 million construction note issued by the Charleston Redevelopment Corp. and a $1.6 million construction loan originated by SCSHFDA.
Additional funding consisted of $2.3 million from the 4 percent LIHTC program, as well as a total of $33 million for the duration of the 20-year Housing Assistance Payment contract. Further financial partners comprise Berkadia, Monarch, CLIMB Fund, TD Bank and Freddie Mac.
Addressing homelessness through affordable housing
Cities such as Charleston spend up to $57,828 annually per homeless family, according to One80 Place. The non-profit organization’s average one-time cost to rehouse a family is $1,500—substantially below the annual community average in legal and healthcare-related costs.
The fight against homelessness is taking place across various states in the country. Earlier this year, a joint venture of Chelsea Investment Corp., Richman Group and Weingart Center Associated opened Weingart Tower 1, a 278-unit affordable community in Los Angeles. The tower represents the largest homeless housing project in the city’s history.
Metro Charleston’s affordable housing pipeline
As of October, metro Charleston’s affordable pipeline consisted of more than 150 units under construction across two fully affordable developments bearing 50 or more units, according to Yardi Matrix data. The figure amounted to 1.3 percent of the total multifamily pipeline.
Efforts are being made to expand the metro’s affordable stock as developers had more than 1,410 units in the planning and permitting stages throughout 17 fully affordable communities, the same source shows.
Should market conditions hold, Yardi Matrix forecasts a total of 225 affordable units to debut in 2024 across metro Charleston. Last year, developers brought online more than 140 units throughout fully affordable communities.
