Press Releases
1998 Housing Program Will Produce 1,140 Affordable Apartments Statewide - 9/8/1998
South Carolina will gain 1,140 affordable rental apartments as the result of federal housing tax credits that have been reserved this year. The State Housing Finance and Development Authority has received notification and fees from 20 development owners in 17 counties throughout the state that were offered reservations of credit. This year the Authority received 39 applications and allocated all of its tax credit funds that were available. The Reservation Certificate reserves housing tax credit dollars from the State Housing Tax Credit ceiling of $4.7 million.
"Since its beginning 11 years ago, this program has made housing available to more than 10,000 families throughout the state," said Authority chairman, Gene Spivey. "Since 1987, tax credits have produced more than 14,293 affordable apartments in South Carolina," he added
Under the federal Internal Revenue Service program each state is awarded tax credits equal to $1.25 per capita. Through this program, administered by the Authority, developers are entitled to an annual income tax credit for 10 years, based on the type of investment used. In return, the developers agree to rent a minimum of 20 percent of the units to families with incomes at or below 50 percent of the county's median income, or 40 percent of the units to families with incomes at 60 percent or less of the county's median income. Median incomes vary by county and are set by the U.S. Department of Housing and Urban Development.
Developers set rents according to federal guidelines. The Tax Credit Program is designed to compensate the property owner for charging rents that are lower than what would be considered feasible without credits.
Federal tax credits are reserved for developers based on recommendations of the South Carolina State Housing Finance and Development Authority. Proposed developments are evaluated using a competitive rating system that includes set-asides to ensure equitable distribution in rural and urban areas.
For more information on the Tax Credit Program or other Authority administered programs, call the State Housing Authority in Columbia, (803) 734-2150. Hearing and speech impaired persons may use the Authority's TDD number (803) 734-2369. The Authority's Web address is www.sha.state.sc.us for those interested in contacting the Authority through the Internet. The South Carolina State Housing Finance and Development Authority is a self-sufficient agency of state government.
Equal Housing Opportunity