Title
Affordable Housing Development Support Requests
Action
Action:
A. Approve up to $30,104,000 in Housing Trust Fund allocations for the following affordable housing developments contingent upon their receiving a Low-Income Housing Tax Credit award from the North Carolina Housing Finance Agency, where applicable:
- Baker Crossing, $1,972,000 (nine percent Low-Income Housing Tax Credit) in Council District 1,
- The Barton South, $3,000,000 (four percent Low-Income Housing Tax Credit) in Council District 3,
- Havenridge at Sharon Amity, $6,000,000 (four percent Low-Income Housing Tax Credit) in Council District 5,
- Union at Graham, $4,400,000 (four percent Low-Income Housing Tax Credit) in Council District 1,
- Woodward Apartments, $4,550,000 (four percent Low-Income Housing Tax Credit) in Council District 1,
- Aveline Newell Townhomes, $2,430,000 (Homeownership) in Council District 4,
- Carya Pond Townhomes, $1,632,000 (Homeownership) in Council District 5,
- Frew Road Townhomes, $315,000 (Homeownership) in Council District 1,
- Tom Hunter Homes, $405,000 (Homeownership) in Council District 1,
- Woodford Estates, $5,400,000 (Naturally Occurring Affordable Housing) in Council District 5,
B. Approve up to $800,000 in federal fund allocations for the Long Creek Commons nine percent Low-Income Housing Tax Credit multi-family affordable housing development in Huntersville,
C. Approve up to $1,500,000 in Transit Oriented Development Affordable Housing Development Bonus Program fee-in-lieu revenue to support Urban Trends acquisition of approximately 0.45 acres in Council District 2, for the future development of affordable housing,
D. Approve an annual reimbursement to Housing Collaborative in an amount not to exceed the Woodford Estates development’s city tax bill for a Naturally Occurring Affordable Housing Rental Subsidy Program over a 20-year period for 34 new long-term rental subsidies for households earning 30 percent and below the area median income, and
E. Authorize the City Manager or his designee to execute, amend, modify, and renew contracts and other required documents to complete the transactions.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Michael Englehart, Housing and Neighborhood Services
Explanation
Action A
§ On November 27, 2024, the city issued a Housing Development Funding Request for Proposals (RFP) to aid in the production of affordable housing units. This is the first RFP since Council’s adoption of the Affordable Housing Funding Policy.
§ Additionally, in May 2023, the city issued a rolling Naturally Occurring Affordable Housing (NOAH) RFP Acquisition, Rehabilitation and Subsidy RFP, which serves to provide opportunities to NOAH developers/owners to be responsive to quickly changing market conditions and allows the city to evaluate proposals on a rolling basis as market opportunities arise.
§ In response to these RFPs, 17 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). Three of the proposals were subsequently withdrawn by the developers.
§ Approval of the recommended Housing Trust Fund allocations will add 874 affordable and workforce rental housing units and 102 affordable 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 evaluation process included assessing the proposals for alignment with Council policies, goals and priorities including the Affordable Housing Funding Policy, ensuring developer experience, achieving long-term affordability, creating mixed-income opportunities in areas of opportunity, and maximizing the leverage of available resources.
§ The NCHFA will base their final tax credit awards on variables such as 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.
Action B
§ The Long Creek Commons development will create 48 units of long-term deed restricted affordable housing in Huntersville. Staff propose up to $800,000 of federal funding support, which may include Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), or Housing Opportunities for Persons with Aids (HOPWA) allocations.
Action C
§ On January 19, 2024, the city issued a rolling Transit Oriented Development (TOD) Land Acquisition RFP to support developer acquisition of TOD-zoned land for affordable housing. City assistance will be provided through short-term (up to three-years) loans.
§ The rolling RFP allows the city to evaluate proposals on a rolling-basis as market opportunities arise and allows developers to be responsive to quickly changing market conditions.
§ When proposals seeking land acquisition support are approved by the City Council, staff will then continue to work with the developer over the term of the loan to finalize project concepts for the development of affordable housing on the property, in alignment with City Council policies, goals, and priorities.
§ Urban Trends has requested a $1,500,000 short-term loan for the acquisition of approximately 0.45 acres located at 1414 West Trade Street (parcel identification number 078-187-01), located in Council District 2, for the future development of affordable housing. The property is zoned TOD-NC.
§ This request represents the second proposal received in response to the rolling RFP to date. Staff will update Council on future proposals as they are received.
Action D
§ Ascent Housing (Developer), or an affiliate, proposes to preserve the 228-unit Woodford Estates Naturally Occurring Affordable Housing (NOAH) community located at 4630 Central Avenue (parcel identification numbers 13103301), in Council District 5, and participate in the city’s NOAH Rental Subsidy Program (Program).
§ The Developer has committed to meeting all of the Program requirements, including setting aside 34 units for 30 percent area median income (AMI) households that do not have existing vouchers or other forms of rental assistance for a period of 20 years.
§ To create new, long-term rental subsidies for these 34 units, the city is being asked to commit to annual funding for the length of the property’s 20-year deed restriction at an amount not to exceed the development’s annual city property tax bill. The maximum amount of the reimbursement will be adjusted each year in correspondence with the actual amount of the current year’s property taxes. The development’s 2024 city property tax bill was $75,796.
§ The rental subsidies will pay the difference between what the resident household can afford (30 percent of their income) and the lesser of the property’s asking rent or fair market rent.
§ The funds will be provided to Housing Collaborative, a local non-profit organization, who will identify eligible tenants and administer the rental subsidy on behalf of the city.
§ The city’s support is contingent on Mecklenburg County’s participation including for the county’s portion of the property taxes for 20 years.
City Council Discussion
§ City Council received staff funding recommendations including Housing Trust Fund allocations at the April 14, 2025, City Council Business Meeting.
Charlotte Business INClusion
All Housing Trust Fund and TOD Affordable Housing Development Bonus Program Fee-in-Lieu funded housing projects and their developers are subject to MWSBE goals determined based on the amount of city funding allocation received.
Fiscal Note
Funding: Housing Trust Fund, Federal Housing Allocations, and TOD Affordable Housing Development Bonus Program Fee-in-Lieu
Attachments
Attachment(s)
April 14, 2025, Council Action Review Presentation