Monthly Archives: February 2012

February 22, 2012 Tags: , ,

LHT Helping to Create Jobs in the Lowcountry

Beaufort affordable housingLowcountry Housing Trust is excited to announce we have been tapped to receive a national grant to help create jobs in the region.

We have received a $20,000 capital grant from the Create Jobs for USA Fund, a collaboration between Starbucks and Opportunity Finance Network (OFN). The money will help Lowcountry Housing Trust create and sustain jobs in the area as part of a national campaign to support community businesses in underserved communities.

Lowcountry Housing Trust is a community development financial institution (CDFI) and the first CDFI in South Carolina to be awarded a grant from the fund since the program began allocating awards in November of 2011. The Create Jobs for USA Fund pools donations from Starbucks customers, partners/employees, and concerned citizens into a nationwide fund, held and managed by OFN, for community business lending. Donors who contribute $5 or more will receive a red, white and blue wristband with the message “Indivisible.” The wristbands are individually handmade in the U.S.A. and all component materials are manufactured by U.S. suppliers, so the effort is also helping support American manufacturing jobs.

Since November 1, the Create Jobs for USA Fund has been collecting donations at www.CreateJobsforUSA.org and at nearly 7,000 company-operated Starbucks across the country. 100% of the donations will support organizations like Lowcountry Housing Trust for job creation and retention across the U.S.

How many of you out there have picked up a wristband from Starbucks? Let us know on our Facebook page!

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February 15, 2012 Tags: ,

The Impact of Foreclosure on Health

Charleston affordable housingIt’s obvious that when a home goes into foreclosure, the homeowner will experience emotional stress on top of financial strain. But what impact does this stress have on the health of a homeowner? Two economists conducted a study last year to find out and discovered there’s a direct correlation between foreclosure rates and the health of residents.

In their study, Janet Currie of Princeton University and Erdal Tekin of Georgia State University centered on some of the hardest-hit areas of the U.S.: Arizona, California, Florida and New Jersey. The results, published by the National Bureau of Economic Research, revealed that an increase of 100 foreclosures corresponded to a 7.2% increase in emergency room visits and hospitalizations for hypertension, and an 8.1% increase in diabetes, among people aged 20-49.

The study also revealed that for each increase in 100 foreclosures, there was a 12% increase in visits related to anxiety in adults aged 20-49, as well as 39% more suicide attempts.

The bottom line is that financial duress, among other issues, could lead to health problems, which can only exacerbate financial problems. For many, it’s a vicious cycle.

Prior to Currie and Tekin’s study, the Leonard Davis Institute of Health Economics issued a brief on the impact foreclosures have on health. Similarly, it found that foreclosure is associated with high rates of major depression, hypertension and heart disease.

RealtyTrac’s January 2012 statistics show 1,343,002 homes were in foreclosure nationwide, which in the Palmetto State translated to 1 in every 651 homes.

Lowcountry Housing Trust is dedicated to providing affordable options for owning a home, because we all benefit from creating safe, decent places to live. From decreased traffic congestion to lower levels of crime, to open green spaces, to greater quality of life, communities thrive when housing is affordable.

Lowcountry Housing Trust recognizes the impact foreclosures have on homeowners and the local community, and has worked diligently to eradicate the issue on a local level. In 2009, LHT received $7.4 million in Neighborhood Stabilization Program funding to purchase and rehabilitate 63 foreclosed properties. LHT will continue to transform abandoned, dilapidated housing units into rental and homeownership opportunities for families at or below 120% AMI through financing the rehabilitation of foreclosed properties.

To learn more about the services LHT offers, including a homebuyer assistance plan, please visit lowcountryhousingtrust.org.

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February 8, 2012 Tags: , ,

LHT Loans Improve Energy Efficiency of Rental Properties, Saving Renters Money

 

charleston affordable housing

The middle of winter is certainly a time when we all tend to cringe when opening the electric/gas bill. And when you are responsible for paying those bills, you can see the logic behind putting on a sweater instead of turning up the thermostat.

In addition to adding layers, there are other ways to improve the energy efficiency of a living space, which can add up to big savings. This is especially important for low-income families who may spend more than 15% of their income on energy, according to the S.C. Energy Office. The Energy Office also says that simple energy efficiency improvements can cut energy costs by more than 40% in most affordable housing properties. The money that families save on energy can help them pay for food, clothing and other essentials.

Lowcountry Housing Trust also thinks it’s important to take measures to build energy-efficient properties and renovate existing properties. That’s why, for the last year, we’ve been offering an Energy-Efficient Rehab Loan Program for rental properties.

Our program makes loans to owners of multi-family and single-family rental properties that they can use to make changes that improve the energy efficiency of the property by a minimum of 20%. Tenancy is limited to households with incomes at or below 120% of the area’s median income. An LHT loan can only be used for items directly related to improving energy efficiency, including hot water heaters, heating/AC systems, insulation, windows, doors, programmable thermostats, lighting and appliances.

Through the program, a property owner applies for an LHT Energy-Efficient Rehab Loan, which is offered at an interest rate between prime and 4 points over prime. The applicant then contracts with an LHT-approved representative to conduct a Home Energy Rating System (HERS) inspection and initial energy rating. The HERS rater makes it simple for property owners by outlining various improvements that can be made that will have a maximum impact at a minimal cost.

Once the recommendations are made, the applicant consults with an architect or contractor and then submits the scope of work to LHT for approval. Once the loan is approved and improvements have been applied to the property, a post HERS test will be conducted on the rehabilitated property to measure the energy efficiency.

Interested in applying for an energy efficient rehab loan or know someone who is? Click here for more information, or contact us at 843-973-7285 or info@lowcountryhousingtrust.org.

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February 1, 2012 Tags: , , ,

Sales of Foreclosed Homes Decreases Across U.S

Charleston affordable housingSales of foreclosed homes across the U.S. fell from 30% of all residential sales in the third quarter of 2010 to 20% of all sales in the same period for 2011, according to RealtyTrac, a national foreclosure tracking firm.

In South Carolina, sales of foreclosed homes accounted for 10.25% of all residential sales for the third quarter of 2011. That’s way down from 29.8% for the same period in 2010.

This rate is pretty low, when you consider Nevada, California and Arizona had the highest percentage of foreclosure sales for the third quarter at 57%, 44% and 43% respectively, RealtyTrac said.

So what are people paying for a foreclosed home? The U.S. average price for a foreclosed home is $165,322. In South Carolina, it’s $136,021.

In data recently posted by the Charleston Regional Business Journal, foreclosed homes in the Lowcountry (within Berkeley, Charleston and Dorchester counties) could be purchased at a discounted rate of 27.95-29% of homes not in foreclosure. Foreclosed homes with the steepest discounted rates – up to 37.2% — could be found in the Midlands.

Would you ever consider purchasing a foreclosed home for the savings? Why or why not?
Neighborhoods across the region negatively impacted by foreclosed properties have begun to see stabilization of home values through a $7.4 million dollar infusion from the U.S. Housing and Urban Development’s Neighborhood Stabilization Program (NSP).

The Lowcountry Housing Trust has been acting as a lead entity with the U.S. Housing and Urban Development’s Neighborhood Stabilization Program (NSP) for the tri-county. We have helped administer funds for this program in partnership with the S.C. State Housing Finance and Development Authority.  NSP funding is provided through HUD’s Community Development Block Grant Program under President George Bush’s Housing and Economic Recovery Act of 2008. A total of $3.92 billion was distributed to state and local governments across the country.

The tri-county’s NSP award was the result of a regional collaboration. To date, LHT and its 10 partners have purchased and rehabilitated or redeveloped 62 properties since implementation of the program began in September 2009. Fifty of the units have been rented, four have been sold and eight are currently available for sale.

For more information about Lowcountry Housing Trust, please visit www.lowcountryhousingtrust.org.

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