City Of Charlotte: $23.3M In City Housing Support To Create And Preserve Affordability, Homeownersh ...

Press release from the City of Charlotte:

Britt Clampitt

9/28/2021

Charlotte
City Council-approved Housing Trust Fund dollars will help preserve naturally
occurring affordable housing, create homeownership opportunities and provide
high-quality rental options

The investment 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 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:

• Developer experience in developing affordable, multifamily housing.

• Ability to create mixed-income housing developments in areas of high opportunity.

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 Road: 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.

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 Road: 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.

• Maple Way Apartments, 1012 McAlway Road: 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.

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.

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.

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.

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.

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.

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.

FAQ's

FAQ's

What is affordable housing and why is the City of Charlotte investing in it?

Housing is considered affordable if a family spends no more than 30% of their income to live there.

Many Charlotteans don't currently have an affordable place to live and Charlotte needs an additional approximately 32,000 units of affordable housing to meet the current need. Seven key trends are shaping the need for affordable housing in Charlotte:

1. The COVID-19 pandemic has further exacerbated the need for high-quality affordable housing.

2. Housing costs have outpaced household income increases.

3. Most of Charlotte's existing affordable rental options are large-scale, naturally occurring affordable housing. This means the unit is not subsidized by the government or restricted to certain income levels. Charlotte has approximately 81,000 of these units, but the supply is decreasing.

4. Charlotte doesn't have enough affordable rental options to meet current and future needs.

When will these units be built?

For developments requesting low-income housing tax credits: Once developers secure and close on financing, it typically takes up to two years to complete each development.

Developments not seeking LIHTCs may be built sooner.

How were the locations of these developments determined?

Each development meets the North Carolina Housing Finance Agency's or and the city's
location guidelines for affordable housing:

• Proximity to transit options and amenities.

• Income diversity.

These guidelines apply to all projects receiving 4% tax credits from the NCHFA. Developments not required to meet these guidelines include those receiving 9% tax credits; with less than 24 units; serving seniors or people with special needs; single-family housing; or naturally occurring affordable housing.

Who qualifies for affordable housing?

​Households earning between 30% and 80% of the average media income of Mecklenburg County and meet background check requirements can qualify for affordable housing. The area median income for family of four in Charlotte is currently $84,200.  

How do I rent a unit if I qualify?

​As the developments near the completion of construction and start pre-leasing, interested households are encouraged to contact the developments to apply for a unit.

What is the Housing Trust Fund?

Established by the Charlotte City Council in 2001, the Housing Trust Fund (HTF) provides gap financing to for-profit and not-for-profit developers for the development of affordable housing. The fund is backed by voter-approved housing bonds.

To qualify for financing through the fund, housing developers must:

• Have a proven development track record.

• Apply for and secure additional financing.

• Guarantee at least 20% of the units will be affordable for households earning 30% of the AMI, or under $25,250 per year for a family of four.

• Include a long-term deed restriction that preserves unit affordability for years to come.

In November 2020, Charlotte voters approved allocating $50 million in bonds to the fund.

In total, the city has allocated $210 million in bonds for the HTF, financing 9,985 new and rehabilitated affordable housing units and shelter beds. Of that total, 3,485 were for households earning less than 30% of the AMI. These types of investments make Charlotte more affordable for preschool teachers, health care aides, and workers in hospitality, retail and emergency services. 

Many Charlotteans don't currently have an affordable place to live and Charlotte needs an additional approximately 32,000 units of affordable housing to meet the current need. Seven key trends are shaping the need for affordable housing in Charlotte:

Developments not seeking LIHTCs may be built sooner.

These guidelines apply to all projects receiving 4% tax credits from the NCHFA. Developments not required to meet these guidelines include those receiving 9% tax credits; with less than 24 units; serving seniors or people with special needs; single-family housing; or naturally occurring affordable housing.

To qualify for financing through the fund, housing developers must:

In November 2020, Charlotte voters approved allocating $50 million in bonds to the fund.

In total, the city has allocated $210 million in bonds for the HTF, financing 9,985 new and rehabilitated affordable housing units and shelter beds. Of that total, 3,485 were for households earning less than 30% of the AMI. These types of investments make Charlotte more affordable for preschool teachers, health care aides, and workers in hospitality, retail and emergency services. 

This press release was produced by the City of Charlotte. The views expressed here are the author’s own.