Charlotte City Council has approved $23.3 million from the city’s Housing Trust Fund (HTF) to help finance nine affordable housing developments.
The Sept. 27 investment decision helps meet the City of Charlotte’s affordable housing and anti-displacement goals by targeting low-to-moderate income households, preserving naturally occurring affordable housing, creating homeownership opportunities, and providing high-quality, new-construction, multifamily rental housing, the city says in a statement.
The developments could add as many as 879 affordable units for families and seniors throughout Charlotte. Of those units, 226, or 26%, will be targeted to households earning up to 30% of the Area Median Income (AMI). In Charlotte, a family of four would need a household income at or below $25,250 to qualify for affordable housing at the 30% AMI level.
The nine developments were selected because they meet HTF criteria including:
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Developer experience in developing affordable, multifamily housing.
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Ability to create mixed-income housing developments in areas of high opportunity.
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Long-term affordability.
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Ability to leverage available resources, such as HTF funds from the city; the Local Initiatives Support Corporation’s (LISC) Charlotte Housing Opportunity Investment Funds (CHOIF), as applicable; public or private land; low-cost debt; project-based housing vouchers; and state and federal affordable housing financing.<>Naturally Occurring Affordable Housing and Anti-Displacement Efforts
The city is supporting two naturally occurring affordable housing developments to preserve existing housing and help residents stay in their homes.
Maple Way Apartments, 1012 McAlway Rd.
Ascent Housing and the Housing Impact Fund are developing 60 units for families with rents ranging from $675 to $900 per month. The city’s investment would be $1.4 million to help fund extensive exterior repairs and improvements.
Shamrock Gardens Apartments, 3779 Michigan Ave.Ascent Housing and the Housing Impact Fund are developing 265 units with rents ranging from $450 to $600 per month. The city’s investment would be $6 million.
The Atrium Health Foundation is a partner in both developments, providing a full-time, on-site community health worker at each apartment complex who will facilitate programs in health and wellness, financial literacy, and workforce development and education.
Affordable Homeownership Opportunities
The city is supporting two affordable homeownership developments:
Bishop Madison Homeownership, 1947 Bishop Madison Lane
Urban Trends Real Estate is developing 10 for-sale units with prices between $260,000 and $275,000. The city’s investment would be $320,000.
Druid Hills Legacy Duet Homes
DreamKey Partners is developing 22 for-sale units in the Druid Hills neighborhood with prices between $209,000 and $250,000. The city’s investment would be $704,000. Unlike a duplex, in which the building typically has a single owner and the two units are rented out, the units in a duet are sold separately.
Developments Requesting Federal Low-Income Housing Tax Credits
Five proposals will also require the developers to secure Low-Income Housing Tax Credits (LIHTC) at the 4% level from the North Carolina Housing Finance Agency (NCHFA). These federal tax credits are awarded to experienced developers constructing new affordable housing developments or rehabilitating existing affordable housing developments. The awarded tax credit depends on the strength of the proposed developments and the developer’s ability to secure additional funding.
The NCHFA will announce all LIHTC awards in October 2021. The NCHFA will base its final LIHTC awards on:
- Developer experience.
- Market demand and local housing needs.
- A project’s ability to serve qualified residents for the longest affordability period.
- Design and quality of construction.
- Financial structure and long-term viability.
If they receive 4% LIHTC awards, the developers will come back to the city for approval of a tax-exempt bond allocation from NCHFA.
Developments will be awarded HTF gap financing contingent upon receiving a LIHTC award. City funding approved for developments that do not receive the LIHTCs will be returned to the Housing Trust Fund for future allocation.
The developments seeking 4% LIHTCs are:
Aldersgate Apartments, 3900 Shamrock Drive: Laurel Street Residential is developing 136 units for older adults and families, and with rents ranging from $415 to $1,445 per month. The city’s investment would be nearly $3 million.
Ballantyne Senior Apartments, 15201 Ballancroft Parkway: Laurel Street Residential is developing 82 units for older adults and with rents ranging from $420 to $1,440 per month. The city’s investment would be $4 million.
Eight and Tryon, 426 N. Tryon St.: Horizon Development Properties, the real estate development division of affordable housing nonprofit INLIVIAN, is developing 106 units for families and with rents ranging from $1,078 to $1,617 per month. The city’s investment would be $3.2 million.
Galloway Crossing, 8300 East W.T. Harris Blvd.: The Woda Group is developing 78 units for older adults and with rents ranging from $420 to $1,075. The city’s investment would be nearly $2.5 million.
Historic Nathaniel Carr, 2498 West Blvd.: The Paces Foundation is developing 120 units for older adults and with rents ranging from $404 to $1,426. The city’s investment would be $2.2 million.
