By By David Slade

Copyright postandcourier

Ethridge said the fund plans to move quickly, buying apartment buildings that don’t have lots of deferred maintenance in less-expensive parts of the metro area.

He said the fund could also work to provide on-site services for residents such as mobile farmers markets, vaccination clinics and after-school tutoring, as was seen in Charlotte.

So far, $35 million has been raised toward a $50 million goal. The fund aspires to purchase 1,000 apartments in the more-affordable parts of the area: North Charleston, West Ashley, Goose Creek and Summerville.

Buying so many apartments with $50 million could be one challenge the new investment fund will face. This month, the Charleston housing authority spent $39.75 million to buy a 209-unit apartment complex in West Ashley called 1800 Ashley West.

The authority’s apartment purchase had a similar goal, that of keeping existing apartments from becoming unaffordable.

Like purchases envisioned by the new Charleston Workforce Housing Fund, the authority’s apartment complex purchase did not involve direct government subsidies.

The business publication Fast Company called the efforts in Charlotte “brilliant” and “one of the most promising models for preserving affordable housing in the United States” in 2023.

At the heart of it all the concept is fairly simple. An investment fund buys apartment buildings, makes good investment returns — but less than most for-profit apartment owners demand — keeps rents lower than they would be otherwise for 20 years, then sells the properties and returns the investors’ money.

Jordan said the CRDA’s involvement started about two years ago when top businesses in the Charleston area said a lack of affordable housing was becoming a serious problem. Rents in the area have increased by more than 30 percent since 2020.