The Charlotte City Council voted Monday to allocate $12.4 million to help finance several affordable housing developments, putting Charlotte on a path to potentially gain 602 new housing units that would remain affordable for decades.

The approved support includes $9.4 million remaining in the city's Housing Trust Fund from two $50 million bonds approved by voters in 2018 and 2020, and $3 million from the trust fund originally earmarked to support the Brookhill Village development.

In January, the city asked for-profit and nonprofit housing developers to submit proposals for building affordable housing with the help of the city's Housing Trust Fund. Trust fund dollars originate from voter-approved housing bonds and are a source of gap financing for affordable housing developers to offset building costs. The city received 12 proposals from developers. With limited trust fund support available, the council on Monday approved financing seven of the proposed developments.

About the Developments

Of the seven developments approved to receive city funds, six are multifamily rental developments and one is a townhome-styled homeownership development. ​

Each of the six multifamily rental housing developments has received or is seeking either a 4% or 9% federal low-income housing tax credit to help cover the cost of development. The North Carolina Housing Finance Agency awards these credits to experienced developers constructing new affordable housing or rehabilitating existing affordable housing. An awarded tax credit depends on the strength of the proposed developments and the developer's ability to secure additional funding. The agency will announce the awards in August.

• Tax credits at the 9% level are very competitive and due to limited availability not all developers seeking a 9% tax credit will receive it. Historically, Charlotte has been awarded three or four 9% deals each year.

• If developers request and receive a 4% tax credit award, they will come back to the city for approval of a tax-exempt bond allocation from the North Carolina Housing Finance Agency.

The city's award of Housing Trust Fund gap financing is contingent upon a development receiving a federal tax credit award. City funding approved for developments that do not receive tax credits will be returned to the Housing Trust Fund for future allocation.

Additionally, each of the multifamily rental developments meets the city's commitment to reserving at least 20% of a development's affordable units for families earning very low incomes — at or below 30% of the Charlotte area's median income (AMI), which is $25,250 or less annually for a family of four.

NOTE: Some addresses indicate an approximate location. 

Forest Park Apartments, 7150 Forest Point Blvd.: $2.5 million from the trust fund would support a multifamily development by the NRP Group that includes 200 units with rents between $420 and $1,075. The units would remain affordable for 30 years. 

• 40 units would be rented to families earning at or below 30% AMI.

• ​140 units would be rented to families earning between 51% AMI and 60% AMI, or between $42,942 and $50,520 annually for a family of four.

• 20 units would be rented to families earning between 61% AMI and 80% AMI, or between $51,362 and $67,350 annually for a family of four.

The NRP Group has received a 4% tax credit award for the development. ​

Northlake Center Apartments, 10400 Northlake Centre Parkway: $500,000 would support a multifamily development by WODA Cooper Companies that includes 78 units with rents between $339 and $1,465. The units would remain affordable for 30 years.

• 20 units would be rented to families earning at or below 30% AMI.

• 12 units would be rented to families earning between 31% AMI and 50% AMI, or between $26,102 and $42,100 annually for a family of four.

• 12 units would be rented to families earning between 51% AMI and 60% AMI.

• 34 units would be rented to families earning between 61% AMI and 80% AMI.

WODA Cooper Companies received a 9% tax credit award in 2020 for the development. ​

Evoke Living at Eastland, 5601 Central Ave.: $2.5 million would support a development for older adults by Crosland Southeast Communities and Opportunities South that includes 78 units with rents between $403 and $1,238. The units would remain affordable for 30 years.

• 20 units would be rented to families earning at or below 30% AMI.

• 31 units would be rented to families earning between 31% AMI and 50% AMI.

• 27 units would be rented to families earning between 61% AMI and 80% AMI.

Crosland Southeast Communities and Opportunities South are seeking a 9% tax credit award.

Mallard Creek Seniors, 7123 Mallard Creek Road: $2.95 million would support a development for older adults by DreamKey Partners that includes 102 units with rents between $404 and $1,458. The units would remain affordable for 30 years.

• 26 units would be rented to families earning at or below 30% AMI.

• 15 units would be rented to families earning between 31% AMI and 50% AMI.

• 30 units would be rented to families earning between 51% AMI and 60% AMI.

• 31 units would be rented to families earning between 61% AMI and 80% AMI.

DreamKey Partners is seeking a 9% tax credit award.

Marvin Road Apartments, 3712 Marvin Road: $2.24 million would support a multifamily development by DreamKey Partners that includes 70 units with rents between $404 and $1,542. The units would remain affordable for 30 years.

• 18 units would be rented to families earning at or below 30% AMI.

• 11 units would be rented to families earning between 31% AMI and 50% AMI.

• 17 units would be rented to families earning between 51% AMI and 60% AMI.

• 24 units would be rented to families earning between 61% AMI and 80% AMI.

DreamKey Partners is seeking at 9% tax credit award.

Parkside at Long Creek, 8400 Mt. Holly-Huntersville Road: $1.49 million would support a development for older adults by SCG Development Partners that includes 57 units with rents between $400 and $1,229. The units would remain affordable for 30 years.

• 15 units would be rented to families earning at or below 30% AMI.

• 15 units would be rented to families earning between 31% AMI and 50% AMI.

• 11 units would be rented to families earning between 51% AMI and 60% AMI.

• 16 units would be rented to families earning between 61% AMI and 80% AMI.

SCG Development Partners is seeking a 9% tax credit award.

East Lane Drive Townhomes: $230,000 would support Habitat for Humanity of the Charlotte Region as it builds 17 townhomes on East Lane Drive. The homes would be sold at $240,000 and remain affordable for 15 years.

• Seven units would be for families earning between 31% AMI and 50% AMI.

• Four units would be for families earning between 51% AMI and 60% AMI.

• Six units would be for families earning between 61% AMI and 80% AMI.
  

The federal low-income housing tax credits are not available for homeownership developments, but Habitat is also requesting $849,000 in gap funding from the federal Community Development Block Grant program.

Redeploying Brookhill Village Funding to Meet Immediate Opportunities

The council in October 2020 set aside $3 million in public funds for Brookhill to support future affordable housing as the site, located off South Tryon Street, was redeveloped. However, no traction was made on a permanent financing plan and suitable affordability for the redevelopment, and later, in 2022, the property changed ownership.