City unveils surplus-property policy to speed affordable-housing projects; council discusses 36-month delivery window

City of North Charleston staff outlined a new policy to inventory and dispose of surplus city-owned parcels to promote affordable housing and other public-benefit projects.

Adam, the presenting staff member, described an initial inventory and said, "I think there's about 12 to 16 that may be viable for donation for affordable housing," explaining that each parcel would be vetted through public works, planning and code enforcement before any transfer. The policy would require prospective developers to provide a project overview, project budget and schedule, and would allow deed restrictions and a "right to repurchase" (a repurchase/reverter mechanism) if projects are not delivered within an agreed period.

Staff recommended a default 36-month delivery window with an ability to establish project-specific milestones in the purchase-and-sale agreement. Council members raised concerns that an unconditional reverter clause can make financing difficult for small nonprofit or mom-and-pop developers; they recommended including phased milestones and negotiating timelines case by case. Staff said milestone schedules and contract terms would be set in the purchase-and-sale agreement so council can vet and authorize exceptions.

Councilmembers generally supported having a written policy to replace ad hoc transfers. Supporters said the policy gives staff and council better tools to hold developers accountable and preserve affordability—staff noted deed restrictions could protect affordable units "in perpetuity or at least for a period of 20 to 30 years," consistent with industry practice.

Next steps: Staff will incorporate council feedback about phased milestones, financing impacts and exceptions for larger economic-development projects and return the policy for formal consideration and potential adoption.