AC Repair in Mount Pleasant, SC

MOUNT PLEASANT — In an ongoing backlash to years of soaring population growth and traffic complaints, this affluent suburb plans to extend strict limits on building permits for another five years.

Just 600 new residences would be permitted yearly in the town of more than 94,000 people, and the actual number would likely be lower.

The yearslong effort to slow residential development by capping building permits is a step no other municipality in South Carolina has taken, but few have experienced growth like Mount Pleasant. The town's population has roughly doubled since 2000 and tripled since 1990.

“There was concern in the community about our infrastructure being able to keep up with the growth rate, and I don’t think that concern has gone away," said Councilwoman G.M. Whitley, who put the permit limit extension before Town Council in November.

The measure is scheduled for a Planning Commission hearing Dec. 13, with a final Town Council vote expected in January. The "building permit allocation system" has been in place nearly five years, and instead of expiring in early 2024, it would be extended to 2029.

It's among many steps the town has taken to thwart rapid growth. There's also a moratorium on new apartment construction that's been in place for seven years, zoning rules have been changed to limit building height and density, and development impact fees were increased dramatically.

In 2018, the year before the permit caps began, the town saw 1,407 new dwelling units — houses, apartments, townhouses and other types of residences. Last year, there were 759.

The permit limits were aimed at slowing the town's annual growth rate for residences from more than 3 percent to a target of 2.1 percent. The result was a growth rate even lower, marked by a low of 1.29 percent in 2020 when just 520 new residences were built.

Mount Pleasant's ordinance in 2019 laid out justifications for limiting building permits, and nearly five years later those have not changed.

The ordinance to extend the permit limits uses the same language, which says "the effects of significant growth are apparent and have resulted not only in increased traffic, congestion and noise, but have also burdened the services.." and "...the town’s road system is barely capable of adequately handling current traffic..."

The permit rules are particularly strict when it comes to higher density multi-family construction, such as apartments and condos. Just 500 new multi-family residences would be allowed over five years, while 2,400 single-family homes could be permitted.

Perhaps surprisingly, despite the limits in place since 2019, hundreds of single-family-home permits went unclaimed.

“Right now we have in excess of 800-900 single-family permits," said Michele Reed, the town's planning director.

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Real estate professionals said a lack of developable land in Mount Pleasant and the high cost of any land available help explain why hundreds of permits to build houses were not used.

“Mount Pleasant, in a lot of ways, is near build-out," said Josh Dix, government affairs director for the Charleston Trident Association of Realtors. "There’s not a lot of opportunity for single-family."

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If the town were to annex more properties, that could change. The town is currently in a lawsuit over rules that require property owners to become part of the town in order to get the water and sewer service needed for development.

The suit was filed by owners of a 185-acre tract on the Wando River, known as the Republic tract.

If it were to be developed in the town, Mount Pleasant's impact fees would apply and permit limits would allow just 25 new homes per developer every six months. If it could be developed as an unincorporated part of Charleston County, town officials have said the county's zoning would allow about 1,600 homes.

So, Mount Pleasant is mostly built-out, but that could change.

In the current permit-limiting plan that started in 2019, all but 10 of the 500 multi-family permits were claimed, as were all 100 of the permits allowed for accessory dwellings — generally small second homes on the same property as a primary home.

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Unclaimed permits will not roll over into the next proposed 5-year program. And as with the current program, there would be limits on how many single-family permits could be obtained every six months.

Drew Grossklauss, a Mount Pleasant realtor who became president of the Charleston Trident Association of Realtors in November, said he understands the town needs to address growth but the length of the permit limit extension seems unnecessary.

“I would say five years seems like an extreme to do something," he said.

There are exceptions to the permit caps. The two developments that have ongoing agreements with the town, Carolina Park and Liberty Hill Farm, are exempt, as are developments of affordable housing.

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During the last five years, there was one townhouse development, Gregorie Ferry Towns, that qualified for the affordable housing exception — townhomes started at $279,000 — but real estate professionals doubt private developers could create more.

"The cost of land, the cost of construction — all these things add up," said Dix. He said allowing more permits for multi-family housing could help create more affordable housing.

“There is a lot of talk from realtors that if we build a lot of multi-family housing, Mount Pleasant would be more affordable, but I think that’s not true," said Whitley. "They will charge what the market will bear."

Mount Pleasant seems certain to extend its moratorium on new apartments yet again. This needs to be the last time — and it needs to be lifted as soon as the town's new zoning regulations are in place.

We agree with Mayor Will Haynie, who has supported these moratoriums while also acknowledging that they represent a sort of failure of local government. Specifically, they reflect a failure of earlier town leaders to ensure that new apartments are built in the right place and with the necessary public infrastructure to support them — and to minimize any negative impacts on existing residents.

But the moratorium also reflects a failure of Town Council to consider those who work in the town and who want to live there but cannot afford to. While the vast majority of Mount Pleasant residents moved to the town, they have supported political candidates who have vowed to make it increasingly difficult and costly for others to do the same. The moratorium has limited new construction and housing supply, helping to drive up both home prices and rental rates. This needs to change.

Almost a decade ago, new apartment projects bothered town voters enough to create a political backlash that ushered in a wave of new council members and, in 2017, the first moratorium on apartments. Since then, the town has regularly renewed the ban, and it worked gradually to revise its comprehensive plan and currently is working to update its zoning and land use regulations to match that plan. The work is expected to finish up in less than a year, after which the moratorium should cease.

It's not just about the need to build more housing; trying to extend it any longer could result in a costly lawsuit for the town. "We knew all along that if we got challenged in court, it would be an uphill battle for us to win," Mr. Haynie tells us. "You have to tie it (the moratorium) to some future occurrence. You can’t just put a moratorium on apartments because we don’t like them." In fact, Mount Pleasant's approximately 8-year-long apartment moratorium might have set a South Carolina record.

Town Council should urge its staff to prioritize updating the code; we see no reason it shouldn't be approved by late summer. Even after the moratorium expires, developers still will see new limits on certain types of residential projects under the town’s building permit allocation system, which limits the number of permits available for single-family housing and multifamily housing developments for several more years. But if Town Council gets this code rewrite right, it also should consider lifting or loosening those permit caps.

Congested roads and overcrowded schools and the loss of forestland and open space have driven these anti-growth measures, but the lack of affordable housing — particularly for those who work in Mount Pleasant's schools, fire stations, hospitals and businesses — is emerging as an equal or even greater concern. And these problems are interrelated: The more people there are who have to commute to Mount Pleasant from Goose Creek, Summerville, Moncks Corner and elsewhere, the worse the traffic.

One thing the town has gotten right is its exemption of multifamily projects with an affordable component from the moratorium. But that has not been enough, particularly as Mount Pleasant has not subsidized such projects to nearly the degree that Charleston has.

The growing problem of too little affordable housing is not a problem only in Mount Pleasant; it's a regional problem. But it's a problem every government in our region must do what it can to solve.