Title
Sale of City-Owned Land for Affordable Housing
Action
Action:
A. Adopt a resolution approving the sale of approximately 1.16 acres of city-owned property at 3924 and 3932 Freedom Drive (parcel identification numbers 063-052-04 and 063-052-05) to Prosperity Freedom Drive, LLC for $1 for the development of affordable, for-sale housing units, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the sale of the property.
Body
Staff Resource(s):
Raquishela Stewart, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Greg Crawford, General Services
Explanation
§ The city owns approximately 1.16-acres at 3924 and 3932 Freedom Drive (collectively, the Property) in the Freedom Drive-Wilkinson Boulevard Corridor of Opportunity in Council District 2.
§ On November 26, 2024, the city issued a Request for Proposals (RFP) for affordable housing developments on city-owned properties, including the Freedom Drive parcels.
§ Two responses to the RFP were received for the Property. A joint proposal from Prosperity Freedom Drive, LLC, an affiliate of Prosperity Alliance (Developer) and True Homes (Builder) (together, the Development Team) was selected based on their qualifications, experience, cost, and responsiveness to RFP requirements.
§ Both the Developer and Builder are experienced affordable housing developers that offer a community, mission-oriented approach with a focus on affordable homeownership especially for households impacted by disparities in homeownership.
§ The proposed development will include the following terms:
- A minimum of 12 new construction for-sale residential townhome units;
- Three units will be affordable to households earning at or below 60 percent of the area median income (AMI), and nine units will be affordable to families earning at or below 80 percent of the AMI, with unit sales prices not to exceed the then-applicable House Charlotte sales price limit;
- An affordability period of 20 years during which units may not be leased; and
- Developer can assign the contract to an entity controlled by the Builder, but any other assignment requires the city’s prior consent.
§ The Property is being conveyed to the Developer for $1 to enable the construction of the affordable townhome development and to help mitigate the need for the city to commit further financial support to the project. The Development Team is not seeking additional grant funding from the city.
§ In addition to the development details noted above, the conveyance will include a 90-day due diligence period with closing to occur within approximately 60 days from the end of the due diligence period, and a reverter clause that can be enforced if the units are not completed and available for occupancy within three years from the date of the deed conveying the Property to the Developer.
§ An appraisal of the Property on July 29, 2026, established a fair market value of $938,000.
Background
§ On July 16, 2024, the Planning Committee reviewed the Property as part of the mandatory referral process and had no comments.
§ On April 14, 2025, City Council received an overview of the proposal, and on April 28, 2025, City Council authorized staff to work with the Development Team to finalize the proposal and conveyance terms.
§ This action is consistent with advancing the goals to enhance neighborhood affordability, economic mobility, and residential stability as established in the Affordable Housing Funding Policy, and is also consistent with the City-Owned Real Estate and Facilities Policy and Guidelines for Evaluation and Disposition of City Owned Land for Affordable Housing.
Fiscal Note
Funding: Proceeds to be deposited into the General Capital Investment Plan
Attachments
Attachment(s)
Resolution
Map