Title
The Reserve at Waterford Lake Naturally Occurring Affordable Housing Preservation and Rental Subsidy Support
Action
Action:
A. Approve a $3,250,000 Housing Trust Fund allocation to Waterford NOAH, LLC, and affiliate of Ascent Housing, LLC, for the acquisition and rehabilitation of The Reserve at Waterford Lake,
B. Approve a Naturally Occurring Affordable Housing Rental Subsidy Program contract with Housing Collaborative for an annual reimbursement over a 20-year period in an amount not to exceed The Reserve at Waterford Lake’s annual city property tax bill for 21 new long-term rental subsidies for households earning 30 percent and below the area median income, and
C. Authorize the City Manager, or his designee, to negotiate, execute, amend, and renew contracts as needed to complete these transactions.
Body
Staff Resource(s):
Rebecca Hefner, City Manager’s Office
Raquishela Stewart, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
§ In 2024, the city issued a rolling NOAH Acquisition, Rehabilitation and Subsidy Request for Proposal (NOAH 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.
§ Waterford NOAH, LLC, an affiliate of Ascent Housing, LLC (Developer), proposes to acquire and rehabilitate The Reserve at Waterford Lake apartments, including creating new long-term rental subsidies for 30 percent Area Median Income (AMI) households (currently $33,650 total annual household income for a family of four).
§ The Reserve at Waterford Lake is a 140-unit existing multi-family naturally occurring affordable housing (NOAH) development originally developed in 1997, on approximately 8.1 acres located near the intersection of Sharon Road and South Boulevard, at 8725 Kody Marie Court, in Council District 6 (parcel identification number 173-233-01) (Property) and meets the city’s NOAH preservation criteria which include:
- Property’s age is greater than 15 years;
- Rents are in the AMI range that are at risk due to surrounding neighborhood dynamics;
- Property can be rehabilitated to maintain a good quality of life for residents for the next 20 years or more; and
- Property is located in an area with access to quality jobs, schools, and transportation infrastructure.
§ The Developer, in response to the city’s NOAH RFP, is requesting the following city support for the development:
- Action A - Acquisition and Rehabilitation:
§ A city funding allocation of $3,250,000 for the acquisition and rehabilitation of the Property.
§ The city investment will be contingent upon a current Property appraisal of no less than $27,750,000 and will be used towards acquisition and rehabilitation costs and include a 20-year deed restriction for the preservation of the 140 units at the following AMI levels:
- 42 units at or below 30 percent AMI,
- 70 units at or below 60 percent AMI, and
- 28 units at or below 80 percent AMI.
§ The proposed rehabilitation will consist of the following:
- Siding repair,
- HVAC upgrades,
- Parking lot improvements,
- Site work/Drainage improvements, and
- Clubhouse enhancements.
- Action B - Rental Subsidies:
§ Of the 42 total units set aside for 30 percent AMI households, the Developer has agreed to specifically set aside 21 units for 30 percent 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 21 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 2025 city property tax bill was $85,083.
§ 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.
§ 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.
§ Additionally, pursuant to the NOAH Rental Subsidy Program Guidelines, the Developer has agreed to:
- Allocate a minimum of 80 percent of all units to residents earning 80 percent AMI (currently $89,750 total annual household income for a family of four) and below, with the majority of units set aside for 60 percent AMI (currently $67,320 total annual household income for a family of four) and below, through a 20-year long-term deed restriction;
- Distribute rental subsidies evenly across one-bedroom and two-bedroom units as applicable; and
- Commit to housing new residents who qualify for the rental subsidy as units come available through natural turnover to avoid displacement.
§ The city’s rental subsidy is contingent on Mecklenburg County’s participation for the county’s portion of the property taxes for 20 years.
§ Support of The Reserve at Waterford Lake development aligns with the rolling NOAH RFP criteria, Guidelines for Preserving Naturally Occurring Affordable Housing which sets forth guidelines to limit displacement of current residents by preserving existing affordability, Guidelines for the NOAH Rental Subsidy Program that expands opportunities for low-income households to live in high-quality NOAH developments through the creation of new long-term rental subsidies, and supports the goals of the Affordable Housing Funding Policy.
Committee Discussion
§ The Housing Committee received an overview of the NOAH proposal and funding considerations at its May 4, 2026, meeting.
§ Additionally, City Council received a memorandum with information about the NOAH proposal and funding considerations on May 7, 2026.
Fiscal Note
Funding: Housing Trust Fund and General Fund
Attachments
Attachment(s)
Map
May 4, 2026 Housing Committee presentation
May 7, 2026 Memo to Council