2 weeks Ago
NORTH CHARLESTON — Funds the city set aside to revive its anti-violence grant program that's been swept up in a federal corruption probe could now help finance an affordable housing project instead. The $1.3 million Gun Violence Prevention Grant program, an initiative created by City Council in late 2022, doled out one-time $100,000 payments to 13 nonprofits working to tamp down violence across the city.
A Post and Courier investigation later found city officials failed to thoroughly evaluate the nonprofits and track how the public funds were spent. In February, the Federal Bureau of Investigation charged Councilman Jerome Heyward in a series of schemes, including accepting $40,000 in kickbacks from two nonprofit leaders in exchange for using his position to steer grant funds from the program their way. Heyward, one of eight people charged in the federal probe, resigned from public office before pleading guilty.
Also charged were the nonprofit leaders who allegedly paid Heyward to help secure the grant funds, Donavan Moten of Core4Success and Michelle Stint-Hilton of DEEP SC. They, along with Rose Lorenzo, a financial company owner who allegedly helped to facilitate the payments, were charged with bribery, conspiracy, wire fraud and money laundering. Despite the controversy, Mayor Reggie Burgess hoped to relaunch the program with a committee dedicated to overseeing the funds.
In December 2024, City Council approved $1 million for the program with the guarantee that funds would not be distributed until the FBI concluded its inquiry. Now, however, city officials said it's "unlikely" the grant money will be allocated to nonprofits this fiscal year, which ends June 30. Instead, officials are considering giving $600,000 of the funding to the North Charleston Housing Authority's nonprofit arm, called North Charleston Renaissance, to help finance a 120-unit affordable housing project on Eagle Landing Boulevard.
The city's Finance Committee approved the reallocation of the money during an April 17 meeting, though the item still must pass two City Council readings. The reallocated funding would help bolster the North Charleston Housing Authority's 9 percent Low-Income Housing Tax Credit application for the first phase of the project. The competitive federal incentive program, administered by SC Housing, does not award more than one new construction application per county, according to the program's application.
The city's funds will only be transferred upon the Housing Authority receiving the award, which is expected to be announced in November. The Housing Authority purchased the 6.5-acre lot in October 2023 for $3.
85 million. A deserted movie theater once sat on the property located within walking distance to Northwoods Mall. The vacant lot is near the planned Lowcountry Rapid Transit bus line on Rivers Avenue, which is primed for future housing growth.
If awarded, the tax credit, combined with the city's grant, will support the financial closing of the project's first phase at the start of 2026, according to a letter from the Housing Authority. This phase includes 60 units designed for residents earning between 20 percent and 80 percent of the area's median income. For a single-person household, a $54,450 annual salary is 80 percent AMI in Charleston County.
Councilwoman Rhonda Jerome said during a committee meeting that the grant is a gift to the Housing Authority and the city will not be involved in the project's development. Any leftover funds that were set aside for the anti-violence grant program that aren't allocated before the close of the fiscal year will return to the city's fund balance. If officials decide to pursue the grant program in the next fiscal year, the amount must be re-appropriated in that budget, according to city documents.
Burgess previously told The Post and Courier he wants to continue the program to reward the nonprofits that are making a positive impact on the community..
