North Carolina Construction News staff writer
The Raleigh City Council has approved a crucial step in supporting the development of two new affordable housing projects: Burrell Lofts and Tryon Flats. The approval allows the Raleigh Housing Authority (RHA) to issue bonds to help finance the construction of the projects.
The RHA has requested up to $19 million in bonds for Burrell Lofts and up to $43 million for Tryon Flats. The approval gives the RHA the green light to proceed with financing these developments, which will create much-needed affordable housing in the city.
Burrell Lofts, located at 1400 Garner Rd., will feature 120 apartment units. Developed by Wallick Communities, the project was awarded $3.17 million in funding by the City Council in April 2024 to assist with development costs.
Tryon Flats, located at 4020 Tryon Rd., will consist of 220 apartment units and is being developed by Elmington Capital Group. Unlike Burrell Lofts, Tryon Flats has not previously received city funding.
A public hearing regarding the bonds was held on March 17.
Under tax law, government entities like the RHA can issue special bonds called private activity bonds (PAB) to support affordable housing development. Unlike traditional government bonds, which require the city to repay the debt, PABs are secured and repaid by the proceeds from the housing projects themselves, not the city’s general fund.
City officials see the approval as a key part of their ongoing efforts to increase affordable housing availability in Raleigh.