Council Approves Two Major Affordable Housing Funding Recommendations

Published on April 23, 2024

A rendering of the Little’s Landing homeownership development by Habitat for Humanity.

During its April 22 business meeting, City Council approved the use of $5,362,000 from the Housing Development Fund to support 159 affordable housing units, 19 of which are homeownership opportunities.

The units are spread across the following developments:

Mallard at Sugar Creek, located at 6150 Mallard Creek Rd in Council District 2, has been allocated $2,640,000. This development will have 15 units reserved for those making 30% or less of the area median income (AMI), nine units for 50% AMI and below, and 36 units for 70% AMI and below, for a total of 60 affordable units. NHE, Inc. will lead the development of this project which will remain affordable for 75 years.
Grounds for Change, located at 3420 Park Rd in Council District 1, has been allocated $2,000,000. This development has a total of 80 units, with 17 units reserved for those earning 30% AMI or less and 63 units for those earning 60% AMI or less. DreamKey Partners is developing this community, and it will remain affordable for 70 years. City Council previously awarded the project $4,500,000 on Nov. 28, 2022.
Legacy Vista is a homeownership development off of Toddville Rd in Council District 3. It has been allocated $456,000 to go toward 12 affordable units: 3 for residents earning 50% AMI or less, 5 reserved for those making 60% AMI or less, and 4 for those earning 80% AMI or less. The development also includes 2 units at market rate. Habitat for Humanity is developing this community. In the first 15 years, the homes can only be resold to an income-eligible buyer at or below 80% AMI. Further, Habitat holds a right of first refusal for 45 years, at which time the resale restriction period resets. The homes may not be rented out.
Little’s Landing is also a homeownership development by Habitat for Humanity. Located at Polk and White Road in Council District 4, it has been allocated $266,000 for seven, for-sale units. Two of these units are reserved for residents earning 50% or less AMI, three are for those making 60% or less AMI, and two are reserved for those making 80% or less AMI. One unit will be sold at market rate. Like Legacy Vista, the homes can only be resold to an income-eligible buyer at or below 80% AMI for the first 15 years. Further, Habitat holds a right of first refusal for 45 years, at which time the resale restriction period resets. The homes may not be rented out.

The awards to Mallard at Sugar Creek and Grounds for Change are contingent upon developers receiving a Low-Income Tax Credit award from the North Carolina Housing Finance Agency.

In addition to Housing Development Fund allocations, City Council has approved, for the first time, up to $3,060,000 from the Transit Oriented Development (TOD) Affordable Housing Development Bonus Program. This funding will be allocated to Give Impact, LLC to support the acquisition of ~1.8 acres located at 140 Dorton Street to develop affordable housing.

The TOD Affordable Housing Development Bonus Program allows developers to increase building heights in their community along transit corridors if they agree to provide affordable housing on site or pay a fee-in-lieu to support future affordable housing communities.

This allocation marks the first time these fee-in-lieu funds have been allocated to support affordable housing efforts.