The Front Porch Newsletter - December 2024 / January 2025

December 2024 / January 2025

Workforce Housing Pilot Program
Going on the offensive for
affordable housing in South Carolina

At SC Housing, we recognize the urgency of addressing South Carolina’s affordable housing crisis, and we’re stepping up with bold solutions.

Our new Workforce Housing Initiative Pilot Program is a significant step forward, combining innovation and collaboration to tackle one of the state’s most pressing challenges: the lack of affordable workforce housing.

Through this initiative, we are working with builders and lenders to produce 30 homes across the state, each priced under $175,000. To make these homes attainable, we’re offering up to $25,000 in forgivable down payment assistance to qualifying homebuyers and providing up to $10,000 subsidies to builders to offset costs. These efforts ensure that more South Carolinians can achieve their dream of homeownership without being burdened by rising costs and interest rates.

We know solving the housing crisis isn’t something we can do alone. That’s why we’re bringing everyone to the table—builders, lenders, legislators, and local governments—to show what’s possible when we work together. As this pilot program takes root, we hope it will inspire similar initiatives and help expand affordable housing across the state.

At SC Housing, we’re not just addressing a problem—we’re building solutions and creating opportunities for families and communities to thrive.

FAQ: SC Housing’s Workforce Housing Pilot Program

Q: What is the purpose of the Workforce Housing Pilot Program?
The program aims to address the shortage of affordable, workforce housing in South Carolina by providing solutions that focus on affordability and accessibility for first-time homebuyers.

Q: How does the program work?
It combines down payment assistance for homebuyers with financial incentives for homebuilders to expand the inventory of smaller, affordable homes. The program is funded using agency reserves.

Q: What assistance is available for homebuyers?
Eligible buyers can receive up to $25,000 in forgivable down payment and closing cost assistance, structured as a zero-interest at closing second mortgage forgiven after five years.

Q: What are the requirements for the homes in this program?
Homes must be at least 1,000 square feet and sold at a maximum price of $175,000.

Q: Can homebuyers use other mortgage options or do they have to go through SC Housing?
Homebuyers do not have to use SC Housing’s homebuyer program, but they must use one of the agency’s many approved lending partners throughout the state. Approved lending partners can be found at http://schousing.sc.gov/homebuyers/find-lender. 

Q: What financial support is available to builders?
Builders receive up to $10,000 in subsidies per home to offset construction costs and fees at closing.

Q: Who qualifies for the program?
Buyers must have an income at or below $127,200, use the home as their primary residence, and secure a 30-year fixed mortgage through SC Housing’s participating lenders.

Q: What is the scale of the initial phase of the program?
The first phase includes 30 homes built by three builders, with each builder constructing 10 homes.

Q: What does SC Housing hope to achieve through this program?
The program seeks to demonstrate the viability of building smaller, affordable homes to increase the state’s affordable workforce housing stock and address challenges caused by rising costs and underbuilding.

Q: Who benefits from this program?
The program is designed to provide housing for individuals and families earning 150 percent of the area median income ($127,200), helping workforce families achieve homeownership.

Q: How does the program encourage collaboration?
SC Housing works with builders, lenders, local governments and others to address workforce housing needs through innovative solutions.

Q: Will the program expand in the future?
SC Housing hopes to replicate and scale the program – by way of funding by the State Legislature – statewide to address South Carolina’s ongoing housing shortage.

Q: Where can builders find more information about the program?
Interested builders can visit SC Housing’s Workforce Housing Pilot Program page for details or email SC Housing’s Director of Single Family Programs Steve Clements at steve.clements@schousing.com. 

Q: Can buyers purchase homes before they are completed?
No, homes must be finished before purchase. However, contracts can be placed while homes are under construction, similar to other new construction properties.

Q: I’m interested in buying one of the Workforce Housing Pilot Program homes with the $25,000 down payment assistance, how do I apply?
As this is a new pilot program, SC Housing has to find qualified builders interested in participating and building the homes. Once SC Housing completes the application process and find those builders, the homes will have to be built and sold. The location (in South Carolina) for the first 30 homes will be determined by where the participating builders locate the projects. We should know more about which builders plan on participating and where the homes will be built later this spring (2025).

Q: If I use SC Housing’s bond program to buy one of the Workforce Housing Pilot Program homes, can I use both the $8,000 and $25,000 (for a total of $32,000) in down payment assistance? 
No. If you purchase one of the Workforce Housing Pilot Program homes (once built), the maximum down payment assistance is $25,000.

Calling all landlords: Transform

your rental business with SC Housing

As a landlord, you know the value of reliable tenants and steady rental income. What if you could secure both while giving back to your community? SC Housing’s Housing Choice Voucher Program, commonly known as Section 8, is your answer.

Operating in seven counties — Clarendon, Colleton, Dorchester, Fairfield, Kershaw, Lee, and Lexington — the program provides rental assistance to low-income families, seniors, and individuals with disabilities. By participating, you gain five key benefits:

First, you’ll enjoy guaranteed rental income, with SC Housing paying a portion of the rent directly to you every month.

Second, the tenants are pre-screened for criminal backgrounds and eligibility, giving you peace of mind while still allowing you to choose the best fit for your property.

Third, with thousands of voucher holders actively searching for homes, you’ll see reduced vacancy rates, saving on turnover costs.

Plus, SC Housing provides support and resources, including inspections and assistance to address any concerns.

Best of all, you’ll make a real difference by providing safe, stable housing for those in need, building a stronger community while meeting your financial goals.

Ready to learn more? Visit https://schousing.sc.gov/renters/housing-choice-voucher-program or email us at victoria.booker@schousing.com.

Together, we can create brighter futures.

Homebuyers: more down payment assistance, simpler calculations

SC Housing recently introduced key updates to its homebuyer programs to make homeownership more accessible for South Carolinians.

Key Changes:

• Increased Down Payment Assistance: Up to $10,000 in zero-interest, potentially forgivable loans for down payment and closing costs.

• Simplified Income Calculations: Eligibility now focuses on the income of the loan applicant(s), not total household income.

• Competitive Interest Rates: Continued stable, affordable rates to make mortgages more accessible.

Last year, SC Housing facilitated over 1,700 home loans, generating more than $370 million in funding and helping thousands achieve homeownership. Programs like the Palmetto Heroes Program further demonstrate SC Housing’s commitment to reducing barriers and building stronger communities.

For more information, visit https://schousing.sc.gov/homebuyers/programs-homebuyers, call 803.896.2211, or email mortgage.production@schousing.com.

Affordable housing benefits everyone

Affordable housing is a net positive for everyone. It strengthens families, schools, businesses and communities as a whole. It's what we do at SC Housing and it's something you can take part in, too.

If you're a hard-working and dedicated individual who would like to help SC Housing accomplish its mission of ensuring all South Carolinians have access to safe, decent and affordable housing, check out our available opportunities below.