Title
Affordable Housing Development Support Requests
Action
Action:
A. Approve $20,265,000 in Housing Trust Fund allocations for the following multi-family rental and homeownership affordable housing developments contingent upon their receiving a Low-Income Tax Credit award from the North Carolina Housing Finance Agency, where applicable:
- Union at Tryon, $3,800,000 (four percent Low-Income Tax Credit eligible), in Council District 4,
- The Vue at Honeywood, $3,456,000 (four percent Low-Income Tax Credit eligible), in Council District 2,
- Evoke Living at Ballantyne, $3,100,000 (four percent Low-Income Tax Credit eligible), in Council District 7,
- Marvin Road Apartments, $3,479,000 (nine percent Low-Income Tax Credit eligible), in Council District 1,
- River District Apartments, $5,800,000 (Not Low-Income Tax Credit eligible), in Council District 3,
- Aveline Townhomes, $630,000 (Homeownership), in Council District 1
B. Approve $3,375,000 in HOME Investment Partnership Program allocations for the following multi-family rental and homeownership affordable housing developments contingent upon their receiving a Low-Income Tax Credit award from the North Carolina Housing Finance Agency, where applicable:
- Long Creek Senior Apartments, $2,250,000 (nine percent Low-Income Tax Credit eligible), in Council District 4,
- Hope Springs Subdivision, $1,125,000 (Homeownership), in Council District 2
C. Authorize the City Manager to execute, amend, and renew contracts and other required documents to complete the transactions approved by these actions.
Body
Staff Resource(s):
Shawn Heath, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
§ On January 13, 2023, the city and Local Initiatives Support Corporation (LISC) issued a joint Request for Proposals (RFP) to aid in the production of affordable housing units. This was the fifth joint RFP conducted by the city and LISC.
§ In response to this RFP, 11 proposals were received seeking various types of gap financing support including nine percent and four percent tax credits from the North Carolina Housing Finance Agency (NCHFA).
§ Approval of the recommended developments will add 582 affordable and workforce rental housing units and 43 homeownership units to the city’s existing supply.
§ The recommended developments meet all submission requirements, including land use and rezoning approvals where applicable. Additionally, the following guiding principles were adhered to in the dual city/LISC evaluation of the proposals:
- Ensuring affordable, multi-family housing developer experience,
- Creating mixed-income developments in areas of opportunity,
- Achieving long-term affordability, and
- Maximizing the leverage of available resources.
§ The NCHFA will base their final tax credit awards on:
- Market demand and local housing needs,
- Ability to serve qualified residents for the longest affordability period,
- Design and quality of construction, and
- Financial structure and long-term viability.
Background
§ On November 26, 2001, City Council established the Housing Trust Fund (HTF) to provide financing for affordable housing in the Charlotte area.
§ On August 27, 2018, City Council adopted the Housing Charlotte Framework, which recommends expanding the supply of high-quality rental housing by building affordable housing, preserving existing naturally occurring affordable housing, and promoting family self-sufficiency initiatives.
§ On June 13, 2022, City Council adopted the U.S. Department of Housing and Urban Development’s Annual Action Plan (Plan) which identifies the need for affordable, safe, and decent housing for low- and moderate-income families and reaffirms the goals of the Housing Charlotte Framework.
§ Support of HTF and HOME Investment Partnerships Program allocations is consistent with the strategies outlined in both the Housing Charlotte Framework and the Plan, demonstrates local alignment with state-supported affordable housing developments, and allows for local leveraging of tax credit awards.
City Council Discussion
§ A briefing of the affordable housing development support requests was provided to City Council during the Action Review portion of the April 10, 2023 Council Business Meeting.
Charlotte Business INClusion
All HTF funded housing projects and their developers are subject to MWSBE goals determined based on the amount of city funding allocations received.
Fiscal Note
Funding: General Capital Investment Plan, HOME Investment Partnerships Program
Attachments
Attachment(s)
April 10, 2023 Council Action Review Presentation