Town Accepting Applications from Community Partners to Create Affordable Housing Opportunities in Chapel Hill

The Town of Chapel Hill released up to $800,000 to support community partner affordable housing projects on Friday, February 23. Applications will be due at 12:00 pm on Monday, March 18.

Eligible uses of this funding include:

• Acquisition or land banking

• Planning for future development

• New construction and redevelopment

• Home repairs

• Homebuyer, relocation, and rental assistance

• Infrastructure, demolition, and site improvements

In the last five years, the Town has deployed more than $22 million to affordable housing, which is anticipated to support the development of over 350 affordable homes and the preservation of more than 1,000 affordable homes in Chapel Hill.

Town staff will present a recommended funding plan to the Town Council for final approval in April 2024. Access the funding application and learn more here.

The Town’s Affordable Housing and Community Connections Department plans to hold a virtual information session for potential applicants at 1:00 pm Thursday, February 29.  Email Emily Holt, Affordable Housing Manager, at eholt@townofchapelhill.org to learn more or register for the information session.

Town Releases Affordable Housing Mid-Year Report

Town staff presented the Fiscal Year 2024 Affordable Housing Mid-year Report to Council on February 14, 2024. The report highlights the Town’s housing needs and provides updates on the Town’s key affordable housing activities as of December 2023.

Highlights from the report for the period from July 1 – December 31, 2023 include:

• Council unanimously approved a Comprehensive Affordable Housing Plan and Investment Strategy.

• Council approved 1,572 total housing units and 236 affordable units in 4 projects (15%).

• The Town awarded $100,000 in funding to the Marian Cheek Jackson Center and Orange County to provide property tax assistance to low-income homeowners.

• Council approved the commitment of $715,000 in funding to support the creation of a $20M Affordable Housing Loan Fund. 

• The Town selected DHIC as the Town’s affordable housing development partner to develop affordable housing on the Town-owned Legion Property. 

• Council approved a modification to the conditional zoning for the Homestead Gardens project that rightsized the project to the funds available and move toward a fall 2024 construction start.

• Tanyard Branch Trace received a 9% Low Income Housing Tax Credit (LIHTC) award for the development of 48 rental housing units on Town-owned land on Jay Street.

• The Town supported the development of four affordable units and the preservation of 16 units.

For the remaining half of the fiscal year, staff will focus on working toward key milestones including breaking ground on the redevelopment of the Trinity Court , working with Self-Help to launch the Affordable Housing Loan Fund, and identifying resources to continue implementation of the Affordable Housing Plan.

Town Provides Nearly $100,000 in Property Tax Assistance to Low-Income Homeowners

The Town provided almost $100,000 in property tax assistance to homeowners in Chapel Hill in partnership with the Marian Cheek Jackson Center and Orange County. One-hundred and twenty-eight low-income households were assisted, many of whom were elderly and people of color. See below more details about the Program results.

For more information, contact Town of Chapel Hill Affordable Housing and Community Connections at 919.968.2743 or housingandcommunity@townofchapelhill.org. 

Town Makes Progress Towards Establishing $20 Million Affordable Housing Loan Fund, Selects Fund Administrator

On November 29, the Town Council unanimously approved the commitment of $715,000 to establish an Affordable Housing Loan Fund.  This funding will supplement an initial $5 million loan from UNC Health that was committed as part of their rezoning approval in June 2023 for a new Medical Office Campus at Eastowne. The combined $5.7 million commitments provide seed funding for an Affordable Housing Loan Fund that will support the acquisition, preservation, and creation of affordable housing in Chapel Hill.  With this initial funding in place, a fund administrator will work to attract additional investment with the goal of reaching a fund total of at least $20 Million. The Town expects a fund of that size to support at least 600 affordable housing units.

The Town has selected Self-Help Ventures Fund as the administrator of the Affordable Housing Loan Fund. Self-Help is a leading national Community Development Financial Institute (CDFI) with extensive lending and underwriting experience, as well as affordable housing development experience across the Triangle and state of North Carolina.  Self-Help is currently the fund administrator for three other affordable housing loan funds in the Triangle area: Wake County, Durham, and Greensboro.

 As Fund Administrator, Self-Help will oversee the review, evaluation, and underwriting of funding applications and the monitoring of all loans issued.  The Town will report on the status of the fund as part of their Affordable Housing Quarterly Reporting.

The Town will now work with Self-Help to refine the details of the fund and its loan products with a goal of launching the fund by summer 2024.

Council approves the development of 380 units of affordable housing in 2023

This year, the Town continued to grow a strong pipeline of affordable housing. As of the last Town Council meeting of 2023, the Council approved 381 affordable housing units in market rate developments. This represents nearly 13% of the 3,000 units approved in 8 projects and doubles the Town’s record for the most number of affordable units approved in a single year.

A list of the approved projects and their affordable housing commitment is shown in the table below. Once rezoning for a project is approved, the developer must secure final permits and financing and complete construction, so the approved units are not likely to come online until 2-3 years after approval, or 2026 at the earliest. Applications for the affordable units in the approved projects will be available as projects near completion.

Town Released First Affordable Housing Quarterly Report for Fiscal Year 2024

The Town has released the first Fiscal Year 2024 Affordable Housing Quarterly Report which highlights the Town’s housing needs and progress towards reaching Council’s affordable housing goals.

Highlights from the Report for the period from July 1 – October 31, 2023 include:

• Town Council approved up to 700 housing units in two projects that will include about 130 units (20%) of affordable housing.

• Town Council unanimously approved a Comprehensive Affordable Housing Plan and Investment Strategy. The plan maps out the Town’s affordable housing work over the next five years and calls for the dedication of $30-$50 million to support the development of as many as 900 new affordable homes and the preservation of as many as 400 affordable homes. 

• The Tanyard Branch Trace (Jay Street) affordable housing development project on Town-owned land received a 9% Low Income Housing Tax Credit award from the North Carolina Housing Finance Agency. The award brings more than $10 million in funding to support the development of 48 units on Jay Street. The units will be affordable to households earning less than 60% of the Area Median Income (about $60,000 for a family of four).

• A low-income first-time homebuyer closed on a newly developed unit in the Northside Neighborhood and local affordable housing partners managed the preservation of five affordable housing units.

• 156 Chapel Hill households received assistance through the County-wide Emergency Housing Assistance Program, totaling $502,228 in assistance provided. 

Town Advances Affordable Housing Goals with Selection of Development Partner for Legion Property

The Town of Chapel Hill is pleased to announce they have selected DHIC, Inc. as the affordable housing development partner for the Legion Property. The Town’s Affordable Housing and Community Connections staff led a competitive selection process and chose DHIC because of their track record of success in planning, building, and managing comparable affordable housing communities.

DHIC is a Raleigh-based nonprofit that develops affordable housing communities in the Triangle and throughout North Carolina. Since 1974, they have built more than 3,200 affordable rental apartment homes with more than 1,000 units currently in development. The Town previously partnered with DHIC on Greenfield Place and Greenfield Commons, two award-winning, affordable rental communities in the Blue Hill district.

DHIC’s preliminary concept includes approximately 160 affordable units for households earning less than 60% of the Area Median Income. Their plans also emphasize connectivity with both the future park planned for the property and the existing neighborhoods surrounding the site.

DHIC also provides a variety of housing support services, another factor that went into their selection, according to Sarah Viñas, Director of Affordable Housing and Community Connections. “DHIC is well-respected both for their developments and for their holistic approach to supporting families and individuals with limited incomes in finding quality housing that meets their needs.”

DHIC’s selection is another step in the Town Council’s ongoing work to realize the future vision for the Legion Property.

• In December 2022, Council approved the future uses of the site to include affordable housing, a public park, and preserved natural areas.

• In May 2023, Council authorized staff to select a partner to develop affordable housing on the site.

• In 2024, planning for the public park will begin as part of the Parks and Recreation Master Plan process, which will identify and prioritize Town-wide needs for parks, recreation, and open space.

“We are pleased to be able to continue to move forward and reach this important milestone to deliver a project that addresses the need for affordable housing and park space in a cohesive project,” said Viñas. “In Chapel Hill, every affordable housing partner has waiting lists that continue to grow. The need is clear and the more units we can get in the pipeline, the sooner those needs can be addressed.”

Viñas also noted that while the selection of DHIC is a major milestone, there are still many steps in the development process over the next 3-5 years, including community engagement with current neighbors and future community members.

For more information about the Town’s affordable housing plans and goals, visit chapelhillaffordablehousing.org For more information about future plans for the Legion property, visit townofchapelhill.org/legion

Apply Now for Community Development Block Grant Funding

Organizations that operate programs or provide housing to benefit low to moderate-income residents of Chapel Hill can apply for Community Development Block Grant (CDBG) funding.

Applications are due by noon on January 12, 2024. 

Discuss your funding proposal with Town staff in a one-on-one pre-application meeting—contact Megan Culp at 919-968-2877 or cdbg@townofchapelhill.org.

Public Hearing on 2024-2025 Community Development Block Grant (CDBG) Annual Public Needs Assessment

The federal CDBG Program, operated by the US Department of Housing and Urban Development, provides communities with resources to address a wide range of community needs to serve low-to-moderate income residents including affordable housing, community services, job training, and youth services. The Town of Chapel Hill has received federal CDBG funds since 1975 and has used these funds to support a variety of affordable housing initiatives and community service programs.

The Chapel Hill Town Council will hold a public hearing at 7 p.m. Wednesday, Nov. 15, in the Council Chamber of Chapel Hill Town Hall to receive citizen input on the Town’s community development needs. Public comments will be used to help determine specific funding priorities, and help identify potential uses of 2024-2025 federal Community Development Block Grant (CDBG) funds. More information can be found on the website at www.townofchapelhill.org/cdbg.  For questions or to submit written comments on Town affordable housing and social service needs, email us at CDBG@townofchapelhill.org.

Council Approves Comprehensive Affordable Housing Plan and Investment Strategy

The Chapel Hill Town Council recently unanimously approved an Affordable Housing Plan and Investment Strategy (the Plan). The Plan outlines the key areas of focus for the Town’s affordable housing work over the next five years and the resources needed for implementation.

“Council’s unanimous approval of our Affordable Housing Plan and Investment Strategy represents a bold step forward in the Town’s affordable housing work,” says Sarah Viñas, Director of Affordable Housing and Community Connections. “This is the first comprehensive affordable housing plan and investment strategy in the Town’s history. Implementing the Plan will expand on our long-standing strong commitment to affordable housing. It will also further center racial equity and our new Complete Community Framework in our work going forward.”

The Plan estimates that implementing the recommended activities and funding will support the development of as many as 900 new affordable homes. It will also preserve as many as 400 affordable homes over the next five years.

Learn More about the Affordable Housing Plan

The Plan summarizes key housing challenges facing the Town and affordability gaps. It also includes specific recommendations to complement the Town’s already robust affordable housing program, which fall into four goal areas:

• Decrease barriers to building homes

• Expand and preserve affordable homeownership

• Expand and preserve affordable rental housing

• Increase staffing and funding capacity

The Investment Strategy estimates the Town will need $50 million over the next five years to implement the Plan.

View the approved Affordable Housing Plan here. Staff are now in the process of incorporating the Plan recommendations into their affordable housing workplan and exploring options for implementation of the Investment Strategy.