Press Releases
State Housing Authority Awards $250,000 to City of Anderson - 9/22/1998
The Board of Commissioners of the State Housing Authority approved a request for $250,000 from its Community Homeownership Opportunity Partnership (CHOP) Program to provide permanent financing for scattered site homes in Anderson. The award was made to the City of Anderson's Department of Economic and Community Development to continue its successful Joint Venture for Affordable Housing (JVAH).
The Authority's CHOP Program assists local communities with providing homeownership opportunities to lower income residents by entering into a "partnership" with a city, county, or a municipal nonprofit organization. CHOP provides funds for below market interest rate mortgage financing in return for the municipality's contribution to the program. Municipal contributions may be in the form of land donations, infrastructure financing, and even support services such as homebuyer classes and credit counseling. According to the Anderson proposal, the City's contribution will include down payment assistance, payment of legal fees and closing costs associated with each loan, conveyance of land for construction of homes, the necessary infrastructure and utility connections, and the waiver of sewer tap and other permit and administrative fees.
The State Housing Authority is able to make awards through its CHOP Program by using recycled funds - earnings derived from loan prepayments and mortgage interest.
It's the way the agency likes to use its money, said Gene Spivey, chairman of the Authority's Board of Commissioners. "We have a responsibility to the economic well-being of this state," Spivey said. "What better way to show our commitment than by reinvesting our earnings into something that stimulates the economy? By recycling our own profits right back into affordable housing opportunities for South Carolinians, we're making a substantial contribution." Spivey also said that the CHOP Program is a good example of how a state agency is working to help local governments. "All we need are good, workable proposals from motivated communities to make the CHOP Program work." The City of Anderson is just such a community, having had a good track record with CHOP funds in the past.
Anderson's prospective homebuyers will benefit from four and six percent interest mortgage loans, to be originated by First Citizens Bank. Eligible homebuyers must meet strict income requirements and home purchase prices will not exceed $76,000, consistent with all State Housing mortgage programs. Additionally, persons wanting to buy a home under this program must attend the City's Home Counseling course.
For information on Anderson's Joint Venture for Affordable Housing, call the City's Department of Economic and Community Development, (864) 231-2223. For more information on CHOP or other State Housing Authority mortgage loan programs, call (803) 734-2069. Persons with speech or hearing impairments may use the Authority's TTY line, (803) 734-2369.
The South Carolina State Housing Finance and Development Authority is a financially self-sufficient agency of state government.
Equal Housing Opportunity