News & Updates

Today the 2007-2008 State Budget takes effect. And today, a record $1.4 million is available to the certified community development corporations(CDCs) of South Carolina. On Friday, June 29th, the State Legislature finalized the annual spending plan for the coming year by voting on Governor Mark Sanford’s vetoes to the State Budget. The state lawmakers and Governor Sanford all agreed to include $1 million in recurring money for CDCs through the S.C. Department of Commerce. But during budget negotiations, the lawmakers included an additional $400,000 in one-time money for CDCs. This was done due to a strong educational effort by the S.C. Association of Community Development Corporations and our member organizations. On June 27th, Governor Sanford vetoed the additional $400,000, but on Friday, June 29th the House and Senate overrode the Governor’s veto.

The $1.4 million included in the 07-08 state budget represents the second year the State Legislature appropriated funds for CDCs. In the 2006-07 Budget, state lawmakers provided the first $1 million of $5 million appropriation authorized under the South Carolina Community Economic Development Act of 2000. This piece of legislation authorized the state to provide $10 million in grants, loans and tax credits to certified CDCs in South Carolina. The $5 million in tax credits were available immediately upon the signing of the bill by Governor Jim Hodges. This year’s appropriation is the second investment authorized under the law.

Community development corporations (CDCs) are local non-profit community groups organized to fight poverty and build wealth in low-wealth neighborhoods throughout South Carolina. These tax exempt corporations fulfill their mission through the development of affordable housing, small business development, job creation, access to affordable capital, and human development. The South Carolina Association of Community Development Corporation’s (SCACDC’s) mission is to raise the quality of life for low-wealth families and communities by advancing the community economic development industry in South Carolina. SCACDC achieves its mission through the capacity building of local community development corporations through the provision of grassroots leadership development, access to capital, advocacy, and technical assistance.

The State Department of Commerce, in partnership with SCACDC conducted 2 grant rounds with the first $1 million, with a total amount requested by CDCs being over $2 million by 19 certified CDCs. Projects seeking funding included a supermarket development, affordable housing for homeownership, and an entrepreneurial loan fund, just to name a few. To date, CDCs in South Carolina are attributed to impacting local economies by over $40 million.

We want to thank Speaker of the House Robert Harrell, House Ways and Means Chairman Rep. Dan Cooper, Senate Finance Chairman Senator Hugh Leatherman, Sen. Phil Leventis, Sen. John Land, Sen. Yancey McGill, Legislative Black Caucus Chairman Rep. Leon Howard, Rep. Gilda Cobb-Hunter, Sen. John Matthews, and the entire S.C. Legislative Black Caucus, as well as Governor Mark Sanford for this historic endorsement of the community development corporations of South Carolina.

SCACDC is Building Wealth…One Community at a Time.

On June 1st, SCACDC along with our collaborative partners Benedict College and Clemson’s Institute for Economic and Community Development awarded the first Certificates of Completion to the inaugural class of the S.C. Community Economic Development Certificate Program. The inaugural class consisted of 25 persons representing CDCs, local government, the Federal Reserve Bank of Richmond, Clemson Community Development agents and community organizers.

The CED Certificate program is a certificate-bearing comprehensive training program offered to local community economic development (CED) practitioners, policy makers, and partners who support CED throughout the state of South Carolina. Participants in the CEDC program received rigorous information on affordable housing, asset management, community organizing and deal development.

GRADUATES INCLUDE:
Mayor John Carter of Town of Gray Court
Wilbur Cave of Allendale ALIVE
Jernita Cooper of CDC of Marlboro County
Rev. Ben Corley of Hopewell Vision Community Development Group
Lynn Cox of Tourism & Community Development City of Barnwell
Jamie Devine of Community Assistance Provider, Inc.
Valeria Jackson with the City of Columbia
Rev. Christian King of Seventh Day Baptist Comm. Dev. Ed. & Serv Outreach
LeRoy Stewart of Seventh Day Baptist Comm. Dev. Ed. & Serv Outreach
Deborah Livingston of Columbia Housing Development Corporation
Lenore McKenna of Charleston Area CDC
Isaac McKissick of One Union
Floyd “Butch Mills, Jr. of Marlboro County Eco. Dev. Partnership
Virginia Miltion of Jenkins Hill CDC
Kenneth Weatherspoon of Jenkins Hill CDC
Carl Neely with the Federal Reserve of Richmond
Anne Pinckney of Upper Dorchester CDC
Bill Stanfield with Metanoia

CLICK HERE, to find out more about the S.C. Community Economic Development Certificate Program.

South Carolina Association of Community Development Corporations Announces
Joint Foreclosure Initiative for South Carolina
Initiative to help S.C. Homeowners Proactively Prevent Foreclosure

Charleston, S.C. - The South Carolina Association of Community Development Corporations (SCACDC) recently established a partnership with Family Services, Inc., NeighborWorks® America, and the Federal Reserve Bank of Richmond to launch the South Carolina Foreclosure Initiative. SCACDC is a trade association and funding intermediary for local community development corporations. The purpose of the initiative is to educate target audiences about preventing foreclosures in the state of South Carolina and to connect homeowners vulnerable to foreclosure to the various institutions who have established resources to help those who are threatened by foreclosure. The first activity of the Initiative was the convening of a taskforce comprised of key members of the mortgage and housing industry to lay out the next steps in this effort.

Family Services, Inc. seeks to provide a secure environment to strengthen the values of individuals and families. The human service company intentionally seeks new opportunities to provide quality and innovative services to consumer problems through qualified and compassionate professionals who create and restore the realization of dreams.

NeighborWorks America is a national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts. Since 1978, NeighborWorks America has successfully built healthy communities. Together with national and local partners, NeighborWorks creates new opportunities for residents while improving communities.

The Federal Reserve System comprises the Board of Governors in Washington D.C. and 12 Federal Reserve Districts located nationwide. The Fifth District, which is headquartered in Richmond, Va., serves the District of Columbia, Maryland, Virginia, North Carolina, South Carolina and most of West Virginia. As the nation’s central bank, the Federal Reserve sets monetary policy, supervises and regulates member financial institutions and provides an array of financial services.

“We are delighted to have these three leaders in community economic development recognize the challenges we face in South Carolina, but also the opportunities to build wealth and serve as a leader in community economic development in the region,” said Bernie Mazyck, President and CEO of SCACDC.

The SCACDC has pursued a wealth building strategy for the last 12 years and through the Foreclosure Initiative seeks to protect the assets that families and communities have built over that period of time. Through the Individual Development Account (IDA) program, over 150 families have secured 56 new homes, 53 persons have established new businesses, and 41 persons have returned to school. A current development snapshot of CDC activity finds these local community-based development organizations with 430 units of affordable housing under development, 184,000 square feet of retail space and total development activity valued at $60 million. With funding from the S.C. General Assembly, Enterprise Community Partners and the Mary Reynolds Babcock Foundation, SCACDC has assisted in deploying over $1 million to 14 CDCs.

Along with Enterprise Community Partners, the Babcock Foundation, the S.C. General Assembly, NeighborWorks America and the Federal Reserve Bank of Richmond, Carolina First Bank, and Wachovia Bank are also leadership supporters of SCACDC and member development corporations in 2007.

For more information on foreclosures, see the reports listed below. You may also contact SCACDC offices at (843) 579-9855.

Foreclosure Report - Executive Summary

Full Foreclosure Report

Where Subprime Delinquencies are getting Worse

Subprime Risk: Most Vulnerable Markets

Foreclosures close in on ‘American Dream’

PRESS RELEASE
WASHINGTON - At a hearing of the Senate Banking Committee yesterday, Senator and Presidential candidate Chris Dodd shed light on a consistent history of neglect by federal regulators with regard to the subprime mortgage crisis. The crisis could cause up to 2.2 million homeowners to lose their homes in the coming years.

The issue is especially prominent in South Carolina, where more than 17% of subprime mortgages will end in foreclosure. In December 2006, nearly 350 South Carolinians lost their homes to foreclosure after taking out subprime mortgages, according to RealtyTrac. Foreclosure rates have skyrocketed 68% in Charleston since 2001, and have increased 16% in Columbia in the same period.

At the hearing, Dodd “laid out what he called a ‘chronology of regulatory neglect’ as banks and other lenders loosened their standards for making riskier mortgage loans during the boom. He later said he plans to convene a special summit of regulators, mortgage lenders, consumer groups and others to work out a plan of relief for vulnerable homeowners,” according to the Associated Press in an article that ran in all four early states.

Dodd also spotlighted federal regulatory failures to make use of powers granted them by Congress to protect borrowers and consumers. Only recently, in reaction to Senator Dodd’s focus on the issue, regulators said they would rewrite lending standards to increase protection for subprime borrowers.

In addition to federal regulators, Dodd questioned executives at four out of the five top subprime lending companies. New Century, one of the largest subprime lenders in the country, refused to testify. Dodd also heard from a consumer, a 77-year old widow who testified about her experiences in the subprime market following the death of her husband.

Dodd noted the importance of protecting the mortgage market for the American economy. He added his twofold goals for the hearing: “First, to save as many people as possible from foreclosure. Second, to make sure that consumers receive the protections that need and deserve. Our leaders should help Americans achieve the dream of homeownership - not take that dream away.”

For more Information contact:
Hari Sevugan
Cell - (312) 203-2207
Office - (202) 737-DODD (3633)

Christy Setzer
Cell - (860) 331-1913
Office - (202) 737-DODD (3633)