North Carolina Construction News staff writer
The Raleigh City Council has approved a key financing step for Moore Square Apartments, bringing the project closer to reality and adding 160 new affordable rental homes in the heart of downtown.
The project aims to meet the city’s goal of making downtown living more accessible and inclusive.
To fund construction, the Raleigh Housing Authority has been authorized to issue up to $31.7 million in bonds. These private activity bonds are a special type of financing allowed under tax law for affordable housing projects. Unlike traditional municipal bonds for roads or parks, these bonds are repaid from rent collected from the housing itself, typically at lower interest rates, reducing the overall cost of construction financing.
Earlier this year, City Council approved a long-term ground lease for City-owned land and provided $15.7 million in funding to help make Moore Square Apartments possible.
The development will be led by Harmony Housing Affordable Development, with the bond financing serving as a critical piece of the project’s overall funding structure. City officials say enabling such financing is an important part of the broader affordable housing strategy in Raleigh.
Construction timelines have not yet been announced.