Greenville leaders will consider changes to affordable housing policies

On November 27, 2024By Pranco

GREENVILLE, SC (FOX Carolina) – Greenville County’s affordable housing policy is almost two years old. The policy is intended to incentivize developers to create more affordable housing by offering tax breaks.

Now that leaders have seen how it works, some say it needs to change to work better.

“The counties have never dealt with this before, but as things stand right now, I don’t think we have a choice,” said Councilman Butch Kirven, District 27.

The housing crisis continues to deepen as advocates, nonprofits and organizations work to find solutions. Greenville County is also trying to provide a little help.

The affordable housing policy was adopted in 2022. With today’s policy, the more affordable units a developer includes, the higher the tax benefit he or she can receive.

Some leaders, however, were concerned about developers abusing the policy– they use it to get a tax break, while they have already received federal or state funding to make the units affordable.

“I think the province needs to be more judicious and measured in supporting a solution to the problem and take responsibility for its financial resources,” Kirven said.

The new proposed plan is to split the policy in two. One policy focused on housing for workers, the other on affordable housing for lower incomes. Overall, the idea is the same, but how developers earn a tax break and how much of a tax break would change.

“The goal is to fill that gap in the market for families who are working, but as inflation and housing costs rise, they are missing out on the opportunity to afford a basic place to live. and this will help bridge that gap,” he explained.

Under the proposed changes, on the affordable side of things, each unit would be priced at rates affordable to families earning between 30 and 70 percent of the area median income – which is around $72,000. Because it caters to lower incomes, developers can also take advantage of state or federal incentives.

but for human resources purposes, the tax credit is limited to a maximum of 50 percent for reserving units between 60 and 120 percent of the AMI. And they can’t already have other stimuli.

“Well, I think it exports flexibility and streamlines a process, not just for the county council but for applicants as well,” Kirven said.

The provincial council will vote on whether to change the policy at next Tuesday’s meeting.