Title
Guidelines for Preserving Naturally Occurring Affordable Housing
Action
Action:
Approve the Housing and Neighborhood Development Committee’s recommendation to approve the Guidelines for Preserving Naturally Occurring Affordable Housing.
Body
Committee Chair:
LaWana Mayfield, Housing and Neighborhood Development
Staff Resource(s):
Pamela Wideman, Housing and Neighborhood Services
Miles Vaughn, Housing and Neighborhood Services
Explanation
§ Most of Charlotte’s existing affordable rental options, and particularly options for low-to-moderate income households, are large-scale Naturally Occurring Affordable Housing developments (NOAH). The preservation of NOAH is noted as a national best practice for maintaining the supply of quality, diverse price point housing and is identified as a key strategy in the Housing Charlotte Framework.
§ The industry standard defines NOAH developments as:
- Multi-family rental property 15 years or older with at least 50 units,
- In need of light to moderate rehabilitation,
- Currently providing rents for households in area median income brackets that are at-risk relative to neighborhood dynamics, and
- Be rehabilitated to maintain the quality of life for residents for 15 years or more.
§ The goals of the guidelines for preserving NOAH include:
- Limiting displacement of current residents by preserving existing affordability,
- Preserving quality affordable and workforce housing by increasing the number of available deed-restricted units and the physical structure of the units,
- Providing low-interest loans so that high performing for-profit and non-profit owner-operators can buy and/or upfit NOAH properties and preserve them as affordable,
- Allowing existing owners to participate in return for deed restrictions and demonstrated management and maintenance history, and
- Aligning guidelines with other City policies.
§ Per the guidelines, the level of funding for NOAH investments by the City will:
- Range between $10,000 and $35,000 per unit,
- Depend on acquisition price, level of necessary rehabilitation and incomes served, and
- Require a minimum leverage ratio of 1:3 (public/private).
Committee Discussion
§ On February 20, 2019, the Housing and Neighborhood Development Committee (Committee) unanimously approved the guidelines (Driggs, Harlow, and Newton; Mayfield and Egleston were absent).
Attachments
Attachment(s)
Guidelines for Preserving Naturally Occurring Affordable Housing