Tax Credits Bring $90 Million Investment in Affordable Housing

Two new housing developments will add nearly 200 affordable rental units and a third project will preserve 101 apartments in Greenville; the majority are earmarked for low-income seniors.

Greenville Housing Fund (GHF) CEO Bryan Brown presented the news at a City Council work session on Monday, Nov. 11. Brown highlighted the two new projects - Southernside Senior I and the Alliance - as "fully funded," thanks to Low-Income Housing Tax Credits (LIHTC) awarded to developers in exchange for building affordable rental housing. A third LIHTC award funded renovation of Summit House, a downtown senior housing complex in need of updating.

"It's really important that we work with our partners," Brown said, "to compete for these scarce resources so we can deliver this type of housing affordability option for our community."

Projects details:

• Southernside Senior I/East -Located at West Washington and South Hudson streets, this project creates 93 units specifically for seniors, serving those in the 20- to 60-percent Area Median Income (AMI) range. This was the highest-rated project in the state. Construction will begin in January 2025.

• The Alliance -Located at the corner of Laurens Road and Ackley Drive, this development will feature 100 units, also serving residents within the 20- to 60-percent AMI. Commercial space will be included along the Laurens Road frontage. The Alliance ranked third on the state's LIHTC funding list. The permitting process on the project is anticipated in the spring of 2025.

"It will make it financially feasible to develop the project into 100 affordable units," said developer Taylor Davis, CEO of NHE Inc., said of The Alliance. "It will be the first new construction project of this size on the Laurens Road corridor." City Councilor Dorothy Dowe called the project catalytic. "Having a local developer take this on is a source of pride," Dowe said.

• The Summit - Owners of the downtown senior housing complex will use tax credits to preserve 101 apartments for seniors. All of the Summit apartments will undergo a complete renovation, starting in 2025.

Created in 1986, the federal LIHTC program partially finances 90 percent of all new affordable developments in the United States, averaging 100,000 new units annually. South Carolina started a ⁠LIHTC state program in 2020 and administers both the federal and state awards. To qualify, renters must earn no more than 60% of Area Median Income (AMI). In turn, rent cannot exceed 30 percent of a resident's income. Developers use the tax credits - $2.5 million annually for 10 years - to raise equity capital from investors.

Looking ahead to 2025, the Greenville Housing Fund will apply for LIHTC funding for Southernside Senior II/West, which is planned to include 57 senior units.

View Presentation on LIHTC Funding (PDF)

Construction on Southernside Senior East, at South Hudson and West Washington streets, will begin in early 2025.

The Alliance will be the first major development along the Laurens Road corridor, providing 100 affordable rental units.

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