Reprinted from The Post & Courier
Charleston County has set aside more than $8 million of its tourism taxes to create a loan fund to bring more affordable housing to the area.
The Local Housing Trust Fund, announced March 27 by county leaders and its partner, South Carolina Community Loan Fund, will provide below-market loans to developers and organizations that build affordable housing. These projects are costly and won't happen without subsidies like this, according to Christine Durant, deputy county administrator for community services.
A change in state law made the fund possible. Until 2023, state and local tourism taxes could only be used to advertise or support local venues, events or projects that attract overnight visitors. Now, local governments can use taxes collected on hotel or short-term rental stays toward housing that individuals who work at hotels, restaurants and other tourism-centered jobs can afford.
The bipartisan legislation does not provide any new funding, but rather allows localities to earmark up to 15 percent of their accommodations tax revenue for housing.