The Impact of Affordable Housing on South Carolina’s Economy: How Developers and Contractors Can Collaborate With MHTF to Promote Growth

Affordable housing isn’t just a social imperative — it’s an economic powerhouse. In South Carolina, the ripple effects of affordable housing initiatives have been felt across various sectors, from job creation to community revitalization. For developers and contractors, the potential for growth is immense, especially when collaborating with organizations like Midlands Housing Trust Fund (MHTF). This article delves into the economic benefits of affordable housing in South Carolina and how B2B collaborations can drive growth and prosperity.

1. The Economic Powerhouse: Affordable Housing in South Carolina

Job Creation

For every 100 affordable single-family homes built, 394 local jobs are created within the first year. These aren’t just temporary construction jobs. The employment opportunities span various sectors:
•    Local Businesses: Retail, healthcare, and education sectors often see a rise in employment to cater to the new residents.
•    Public Services: More residents mean a greater need for public service employees, such as firefighters and police officers.
•    Construction: Skilled and unskilled labor, project management, engineering, architecture, and building management.

Local Economic Boost

Affordable housing projects often lead to increased local spending, bringing in around $28.7 million on average in local income and $3.6 million in taxes and other revenue for local governments. Here’s how:
•    Consumer Spending: New residents require goods and services, from groceries to healthcare, which boosts local businesses.
•    Sales Tax Revenue: Increased spending also means increased sales tax, which can be reinvested in the community for public services and infrastructure.
•    Local Business Growth: With a stable customer base, local businesses can expand, further contributing to the economy.

Discover how affordable housing is funded in South Carolina.

Community Revitalization

Affordable housing can be a catalyst for community transformation:
•    Increased Property Values: Well-executed affordable housing projects can uplift an area, increasing property values and attracting investment.
•    Business Attraction: As communities grow and prosper, they become more attractive for new businesses, creating a virtuous cycle of economic growth.
•    Social Cohesion: Affordable housing fosters diverse, vibrant communities, which can lead to increased social capital and community participation.

2. The Role of Developers and Contractors

Diverse Portfolio

Engaging in affordable housing projects offers a chance to diversify:
•    Risk Mitigation: Affordable housing is often less susceptible to market fluctuations, providing a stable investment.
•    Social Impact: These projects offer the added benefit of social impact, enhancing a company’s reputation and brand value.

Tax Incentives

South Carolina offers various tax incentives for affordable housing developers:
•    Tax Credits: Developers can take advantage of Low-Income Housing Tax Credits (LIHTC) to offset costs.
•    Property Tax Abatements: Some areas may offer property tax incentives for affordable housing projects.

Learn why investing in affordable housing is a smart business move.

Long-Term Growth

The demand for affordable housing is not a passing trend:
•    Steady Demand: With the increasing population and housing shortages, the need for affordable housing is likely to remain high.
•    Repeat Business: Successful projects often lead to more opportunities, both in affordable housing and other sectors.

3. Collaborating With Midlands Housing Trust Fund (MHTF)

Access to Funding

MHTF provides loans to qualified developers and contractors:
•    Flexible Terms: MHTF often offers more flexible loan terms than traditional financial institutions.
•    Grants and Subsidies: In some cases, additional funding in the form of grants or subsidies may be available. Oftentimes, developers and contractors that work with Community Development Financial Institutions like MHTF can secure grants or cost offsets from local and county governments.

Expertise and Guidance

MHTF’s experience is invaluable:
•    Capital Integration: MHTF can utilize innovative programs that invest federal dollars alongside private capital dollars.
•    Community Investment: MHTF can play an important role in generating economic growth and opportunity in distressed communities throughout South Carolina.

Here’s how South Carolina developers can combat the affordable housing crisis with MHTF.

Networking Opportunities

Collaborating with MHTF can generate capacity-building opportunities. Community Development Financial Institutions (CDFIs), like the Midlands Housing Trust Fund, invest in and build the capacity of communities, empowering growth, sustainability, and revitalization.

By understanding and leveraging these economic and collaborative benefits, developers and contractors in South Carolina can play a pivotal role in shaping not just the affordable housing landscape but also the broader economic fabric of the state.

The economic impact of affordable housing on South Carolina’s economy is undeniable. For developers and contractors, the opportunities are vast, especially when collaborating with organizations like MHTF. By focusing on the broader economic benefits and tapping into the expertise and resources of nonprofits, developers and contractors can drive growth, profitability, and societal well-being.

Interested in learning more about the benefits of investing in affordable housing? Midlands Housing Trust Fund can help! MHTF is dedicated to improving South Carolina communities by expanding access to quality affordable housing. We provide a variety of loan products to housing developers and contractors for the purpose of creating, rehabilitating, and maintaining affordable housing for households earning less than 80% of the Area Median Income.

Thanks to flexible lending limits and competitive loan rates, MHTF’s business model presents an attractive alternative to conventional retail banking for housing developers. Since 2012, we are proud to have provided more than $3 million in affordable housing financing, thereby creating or preserving 512 housing units and improving the lives of over 1,200 individuals.

Contact us today for more information about how MHTF can serve your community, or consider investing in our work.