Marsh Pointe could be vacant by end of 2009

The 26 families in Marsh Pointe affordable housing complex could be living in homes throughout Beaufort and Port Royal by the end of next year, a consultant told city officials last week in preparation for a proposed $26 million municipal building project.

Marsh Pointe, a 4-acre site owned and operated by the Beaufort Housing Authority, has been targeted for years as a potential site of a roughly 50,000-square-foot complex comprising a performing arts center and a meeting center. Before construction plans can move forward, however, the city must find new homes for Marsh Pointe's residents.

Aiken-based The Barner Group was hired in December to develop a strategy for relocating Marsh Pointe's 26 low-income families, who typically pay about 30 percent of their monthly income toward rent, according to the housing authority. Barner president and CEO Reginal Barner presented that strategy at a Thursday meeting of the city's Redevelopment Commission, which includes the five City Council members.

Barner found 11 homes in the Mossy Oaks neighborhood, six in Port Royal and one on Carteret Street that could be purchased for Marsh Pointe families. At least two residential units above businesses in Beaufort Town Center, which surrounds Marsh Pointe, are also expected to be occupied by relocated families.

The 18 houses identified by Barner range in price from $110,000 to $199,900, but he expects the city to pay far less.

"A house is a house," Barner said. "Affordable housing is not what we build. Affordable housing is what we finance."

Barner identified many potential sources of financing and constructed a hypothetical scenario in which the Federal Home Loan Bank of Atlanta would pay $20,000 toward each home and the State Housing Finance & Development Authority would pay half the city's remaining cost.

Purchasing the 18 homes identified by Barner, therefore, would cost the city less than $1.1 million.

Under Barner's plan, the city and the housing authority would create a nonprofit partnership that would be paid a developer fee for all the sites. The nonprofit would receive approximately $430,000 in developer fees for the 18 homes, and the fees could then be used to establish more homes for low-income residents.

"Those funds go back into the community to create more affordable housing," Barner said. "And at the end of 15 years, you can sell the 26 units to the families (living in them) and then put that money back into the community."

Barner suggested the nonprofit purchase a tract large enough for a 50-unit affordable housing complex, though he has not been able to locate a suitable parcel.

Barner's report provides a clear path for solving a problem that community leaders have discussed for years but have failed to properly address, City Councilman Mike Sutton said.

"Reggie's report is a true indication of an opportunity that the city, county and other municipalities that want to partner in affordable housing should take a serious look at," he said. "Affordable housing is not a city issue, it's a community issue, and it's not going to be solved by the city of Beaufort (alone)."

Thursday's meeting was attended by Beaufort Housing Authority executive director Ed Boyd and members of the housing authority's board of directors, as well as Beaufort County affordable housing coordinator Shirley Wilkins.

"I think everybody understands (Barner's) report is realistic and it's achievable, and I can't think of a single grant opportunity that gives more return on its investment to everybody involved," Sutton said.