HOME Program Key to Rehab of Local Historic Landmark

Rose Hotel in York, SC renovated to provide affordable housing

The nationwide shortage of affordable housing options affects urban and rural communities alike. Finding the land and capital resources necessary to successfully complete an affordable housing project often calls for creative thinking in terms of the sites selected and the funds raised for development. To this end, the city of York, South Carolina (population 6,985) recently rescued a local historic landmark and converted it into 15 affordable rental units.

The Rose Hotel Prior to HUD The Rose Hotel renovated and ready to do business

Built in 1852, the Rose Hotel was originally owned and managed by William E. Rose. Since then, the building served as a hotel, a barracks for Confederate troops during the Civil War as well as for Union troops during Reconstruction, and a carpet factory. The past decade, however, saw the Rose Hotel fall into decay and disrepair, a dilapidated eyesore. During this period, the building was close to being condemned and demolished by the city. This was averted as the result of a public hearing held on October 6, 1998 to solicit citizen input concerning York’s community development needs and priorities.

Addressing York’s lack of decent affordable housing emerged as the community’s top priority. Simultaneously, developer DeWayne Anderson began to express an interest in restoring the Rose, which he purchased in 1999. This confluence of events helped lay the groundwork for the project that finally materialized: the restoration of the Rose and the conversion of its rooms into affordable rental units. Renovation is part of the city’s development plan, which focuses on revitalizing its downtown and encouraging businesses and homeowners to relocate there. Development of rental housing, pedestrian marketplaces and building renovations are parts of the city’s comprehensive development plan, a strategy developed in consultation with the Catawba Regional Council of Governments (COG). An Economic Development Administration funded district, the Catawba Regional COG serves the residents of a four-county region in northwestern South Carolina. The South Carolina Housing Finance and Development Authority also provided technical assistance, as well as financing in the form of state US Department of Housing and Urban Development (HUD) funds.

The task of renovating the local landmark proved to be more daunting than anticipated. A city project committee comprised of city officials and historic preservationists was confronted with a dearth of information about the hotel’s original appearance. Research by architect Martin Meek provided the contractor with enough information to make the Rose’s restoration as authentic as possible. The careful attention to detail has resulted in the transformation of the Rose into a vibrant landmark and city centerpiece. According to Margie Miller, great-granddaughter of William Edward Rose, “I know he [Rose] would be proud to see this hotel. I think it is the prettiest building in York.”

This project is also an example of how affordable housing goals can be successfully achieved when local government and regional councils commit to a comprehensive planning process. By renovating an existing building, the city of York, South Carolina has preserved a link to its past while ensuring the availability of affordable housing for its residents now and in the future.

Once the renovation details had been determined, the task fell to the project committee to raise funds and hire a contractor to complete the work. Landmark Asset Services of Winston-Salem, North Carolina was hired to complete the work, while the city applied for funding from a number of different sources. HUD Community Planning and Development funds were crucial in making the project financially viable. Home Investment Partnerships Program (HOME) funds were the main source of HUD funding, while Community Development Block Grant (CDBG) funds, Historic Tax Credits, developer equity and in-kind contributions from the city rounded out the development budget.

The renovation of the Rose Hotel was completed in the fall of 2000 and it was renamed The Rose. This handsome historic landmark houses 15 affordable rental units: the majority are leased at the HOME program rents. Opened in January 2001, the units were filled immediately, and a waiting list is maintained. The Rose demonstrates the level of success that can result from the prudent stewardship of public resources. This project is also an example of how affordable housing goals can be successfully achieved when local government and regional councils commit to a comprehensive planning process. By renovating an existing building, the city of York, South Carolina has preserved a link to its past while ensuring the availability of affordable housing for its residents now and in the future.l

Editor’s Note: This article was written by Doug Lynott, Affordable Housing Specialist at HUD’s Office of Affordable Housing Programs. Contact Doug Lynott at (202) 708-2470 or by email at Douglas_B._Lynott@hud.gov. For more information about the HOME Investment Partnerships Program, please contact HUD’s Office of Affordable Housing Programs, Office of Community Planning and Development at (202) 708-2470 or visit www.hud.gov/cpd/home/homeweb.html.

HUD and the HOME Program The US Department of Housing and Urban Development administers the HOME Program, which provides formula grants to states and localities that communities use—often in partnership with local nonprofit groups—to fund a wide range of activities that build, buy and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income people. HOME funds are awarded annually as formula grants to participating jurisdictions. HUD establishes Home Investment Trust Funds for each grantee, providing a line of credit that the jurisdiction may draw upon as needed. The program’s flexibility allows states and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancement, or rental assistance or security deposits. States are automatically eligible for HOME funds and receive either their formula allocation or $3 million, whichever is greater. Local jurisdictions eligible for at least $500,000 under the formula ($335,000 in years when Congress appropriates less than $1.5 billion for HOME) also can receive an allocation. Communities that do not qualify for an individual allocation under the formula can join with one or more neighboring localities in a legally binding consortium whose members combined allocation would meet the threshold for direct funding. Other localities may participate in HOME by applying for program funds made available by their state. Congress sets aside a pool of funding, equivalent to the greater of $750,000 or 0.2 percent of appropriated funds, which HUD distributes among insular areas. HUD has published 14 model program guides on planning and implementing specific types of HOME-funded activities, available free from Community Connections (1-800-998-9999).

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