City officials and Bloomberg Associates outline plan to create 3,500 affordable homes, seek $800 million in catalyzing funds

Charleston City Council heard a presentation Feb. 25 from Bloomberg Associates and city staff that set a goal of creating 3,500 additional affordable or attainable homes and identified roughly $800 million in catalytic funding the city would need to assemble from public, quasi‑public and private partners.

The pro bono consulting team from Bloomberg Associates, represented by Naaman Freeman, told council the region’s population growth has been driven by smaller, higher‑income households that are displacing larger, lower‑income households and tightening the rental market. “The area median income for a household of four is now well above $100,000,” Freeman said, adding that the city lacks enough units affordable to households at 50% of area median income (AMI) and below.

The presentation said the city must both increase overall supply and create more long‑term income‑restricted units so lower‑income households are not “cannibalized” by higher‑income renters. Freeman said the city should target income‑restricted affordability, with long affordability terms, and added that the mayor asked the team to include an additional goal: speeding development review and permitting.

“We must make development review and permitting much more expedient,” Freeman said. City staff and councilmembers emphasized the point: a faster review process reduces carrying costs and helps keep the cost of new affordable units lower.

Amy Wharton, the city’s chief financial officer, summarized funding options discussed by staff: general fund contributions (the city currently contributes $300,000 annually from franchise fees), potential general obligation (G.O.) or special bonds, use or extension of existing tax increment financing (TIF) districts (she cited about $30 million currently available in the Cooper River TIF), disposition of city‑owned land, density bonuses, tax abatements and pursuing revenue from a regional transportation sales tax (TST) if the state allows sales tax proceeds to be used for housing capital costs.

“Those are ideas,” Wharton said. “It’s fine to have ideas and dreams and goals, but how we’re going to pay for it, we need to start penciling out.” Mayor William S. Cogswell and several councilmembers urged pursuing a repeatable revenue stream rather than one‑time bonds.

City staff presented an inventory of publicly owned sites across the tri‑county region and said 29 city‑owned parcels, totaling about 74 acres and an estimated value of over $100 million, could support affordable housing and might yield up to 4,000 units under some development scenarios. The Charleston Housing Authority, the staff noted, currently has about 2,600 units and plans and sites that could permit 2,000–2,500 additional units as part of redevelopment.

Staff and Bloomberg Associates estimated the per‑unit subsidy for new construction at deeper affordability levels can be high—roughly $300,000 per unit at 50% AMI and higher (up to $450,000) for the lowest AMI bands—hence the need to pool public, philanthropic and private resources.

Next steps listed in the presentation included continued exploration of revenue and financing options, incorporating development feasibility into zoning updates, implementing program changes and leveraging public and institutional assets (for example, university and hospital land) for public‑private partnerships.

Councilmembers asked about secondary effects of speeding permitting, the potential for induced development, and tools to activate underused privately owned land. Freeman and staff said speeding permitting does not mean reducing standards but removing unnecessary delays that add cost; they suggested tools such as land tax reform, incentives and targeted use of publicly owned land to encourage development in corridors where infrastructure exists.

“No single lever will do this by itself,” Gianna Shaw Johnson, a member of city staff who led portions of the nine‑month effort, told council. She said resident stabilization, homeownership support and preservation of existing affordable units will be part of the package if the city can secure more resources.

Councilmembers and the mayor praised the study as a deep dive that turns long‑standing needs into an actionable menu of options. Mayor Cogswell and councilmembers said further work is required on legal change at the state level to allow sales tax capital use for housing, and staff will return with more detailed cost and program proposals for committee review.

Ending: City staff said they will bring follow‑up information to community development and ways‑and‑means committees and continue discussions with regional partners, the Housing Authority and philanthropic partners. No funding commitments were made at the Feb. 25 meeting; the presentation laid out options and next steps for further council consideration.