North Carolina Construction News staff writer
The City of Fayetteville and the Fayetteville Metropolitan Housing Authority have secured $25.1 million in federal funding to transform one of the city’s oldest public housing communities into a new mixed-income neighborhood.
The U.S. Department of Housing and Urban Development awarded the city and FMHA $25,115,578 through its FY2025 Choice Neighborhoods Implementation Grant program. The funding will support the next phase of the Murchison Choice Transformation Plan, a resident-driven effort focused on new housing, infrastructure, workforce development and community investment.
The city and FMHA had sought $26 million through the competitive program. The federal grant is expected to leverage more than $531 million in public and private investment for the broader transformation.
The plan will replace all 60 units at the 56-year-old Murchison Townhouses public housing community on a one-for-one basis while creating a total of 323 new mixed-income rental apartments across the Murchison Townhouses and Elliott Properties sites.
Eligible residents will have the right to return to the new housing.
The housing development represents about $95.7 million in new investment and will include features such as in-unit washers and dryers, pantries, gardens, a park, picnic areas, a fitness centre, art murals and improved lighting.
The project also extends beyond housing.
Family-supportive services will connect residents with education, workforce development, job-skills training and economic self-sufficiency programs, including services for seniors.
Neighborhood improvements will include 35 new for-sale homes, exterior improvements to about 35 existing homes, façade improvements to 30 commercial buildings, new trail connections, gateways, signage and other placemaking projects.
The city said it has already invested more than $20 million in infrastructure upgrades, housing development, placemaking and workforce programming in the Murchison neighborhood.
“This Choice award will be a game-changer for the Murchison Road corridor and the families who call it home,” Fayetteville Mayor Mitch Colvin said. “For years, our residents have shared their vision for a stronger, safer, more connected neighborhood — today, that vision starts becoming reality.”
Colvin credited U.S. Rep. David Rouzer, the Murchison Choice team and residents who participated in developing the plan.
“Fayetteville is ready to get to work,” he said.
Rouzer, whose North Carolina 7th Congressional District includes part of Cumberland County, was among the members of Congress who supported Fayetteville’s application. He was joined by Rep. Richard Hudson, Sen. Thom Tillis and Sen. Ted Budd.
In an April 2026 letter to HUD Secretary Scott Turner, Rouzer urged approval of the application, saying Fayetteville’s proposal would bring federal investment to a region that had previously been overlooked by the Choice Neighborhoods program.
“This is a major investment in the future of Fayetteville and, most importantly, in the families who call Murchison home,” Rouzer said. “This funding will help bring new housing, stronger infrastructure, and greater opportunities to one of Fayetteville’s historic neighborhoods.”
City officials also met with HUD leadership in Washington in March to discuss the proposal. The city said HUD officials confirmed the project aligns with federal priorities around housing production, regulatory relief, economic development and community development.
The Murchison initiative is being led by the city’s Economic and Community Development Department in partnership with FMHA and residents.
Pennrose, a national housing developer, will lead the housing component, while Urban Strategies will lead the people-focused initiatives. Fayetteville State University and Cumberland County Schools are among the other partners involved in the effort.
The city said the award is the first Choice Neighborhoods grant in eastern North Carolina. Durham and Winston-Salem have previously received Choice Neighborhoods awards.
HUD’s Choice Neighborhoods program provides competitive grants to transform, rehabilitate or replace severely distressed public and HUD-assisted housing while addressing broader neighborhood conditions. The program is designed to create mixed-income communities with improved access to schools, services, transportation, jobs and public amenities.
For Fayetteville, officials say the federal investment will provide the resources to move the Murchison transformation from planning into implementation.
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