Charleston’s New Housing Proposal: A “Permanent Workforce Housing” District Could Change the Rules
Charleston leaders are taking a new swing at the housing crisis — and this one is aimed at stopping what officials call the “burn-off” problem, where affordable units eventually expire and convert back to market-rate pricing.
City officials are proposing a new zoning district called Mixed-Use / Workforce Housing District (MU-3/WH) — a change designed to create thousands of workforce/affordable homes that would stay affordable long-term, tied to Charleston’s broader goal of adding 3,500 affordable housing units by 2032.
Why the city says this matters
Councilman Ross Appel described Charleston’s post-COVID surge and the resulting jump in housing costs as a major driver behind the new proposal.
The key issue officials want to solve: affordability that expires.
Under the proposal, at least 50% of units in the new district would be required to remain affordable — and the district would include permanent affordability requirements for those workforce units (no “burn-off”).
What is the MU-3/WH district?
The MU-3/WH district is being proposed as an ordinance amendment to Charleston’s zoning code (it appears on the Planning Commission agenda as a request to create the district).
The headline requirement: 50% workforce housing
In Charleston’s working draft language, developments in WH districts typically must include at least 20% workforce housing units — but MU-3/WH would require at least 50% of total units as workforce housing (rounded up).
The “permanent” part: affordability in perpetuity
The draft also includes language that workforce units in MU-3/WH would be restricted “in perpetuity” (unlike typical 20–30 year affordability periods).
How this differs from Charleston’s existing workforce housing approach
Charleston already has a Mixed-Use/Workforce Housing ordinance that allows unlimited density when developers include 20% affordable units for a minimum of 30 years — with alternatives like fee-in-lieu or land-in-lieu options in certain cases.
MU-3/WH is a big step up from that model because:
- It raises the affordability requirement to 50% of units
- It requires affordability in perpetuity (no scheduled expiration)
- It does not allow fee-in-lieu to replace units within MU-3/WH
That last point is huge: instead of paying out, developments would be required to actually provide the units.
Who would the workforce units serve? (AMI breakdown)
One of the biggest questions with workforce housing is who it’s affordable for.
The working draft spells out how MU-3/WH workforce units would be distributed across income levels (Area Median Income — AMI). Here’s the breakdown listed in the draft:
- 20% of workforce units: ≤ 120% AMI
- 10% of workforce units: ≤ 100% AMI
- 10% of workforce units: ≤ 80% AMI
- 10% of workforce units: ≤ 60% AMI
(These ranges matter because they determine what “affordable” actually means in real dollars.)
The draft also defines affordable rent in relation to AMI (and references HUD benchmarks for the Charleston–North Charleston metro area).
What happens next
The MU-3/WH proposal is moving through the city’s public process — and the next steps typically involve:
- Planning Commission discussion/feedback (it appears on the agenda as an ordinance amendment request)
- City Council consideration
- Final adoption + implementation details
Why this will be debated in the Lowcountry
Expect strong opinions — because this district touches the most sensitive pressure points:
1) It could increase long-term affordable inventory
The city’s stated goal is to create thousands of long-term affordable homes and hit a citywide target of 3,500 affordable units by 2032.
2) It changes how developers “earn” density
Charleston’s current incentive structure already uses density bonuses tied to affordability. MU-3/WH raises the bar by requiring much more affordability — and not allowing buyouts through fee-in-lieu within that district.
3) Residents will ask: where will this district apply?
The practical impact will depend on where MU-3/WH is mapped and how often developers choose/are able to use it.
Bottom line
Charleston’s proposed MU-3/WH district is a meaningful policy shift because it targets the affordability “expiration” issue directly by requiring 50% workforce units and pushing affordability toward permanent restrictions — rather than 20–30 year windows that eventually roll off.
