The City of Charlotte offers many affordable housing resources to both renters and potential homebuyers. One recent project will provide both low-cost rent and a new homeownership opportunity.
The city is partnering with
Community Link, a housing nonprofit, to use the city's
House Charlotte down payment assistance program and Community Link's Veterans Homeownership Program to help a local veteran purchase a home while renting out the home's secondary residence at an affordable rate to a family earning a low income.
The House Charlotte program is a down payment assistance program that provides up to $30,000 in assistance to eligible homebuyers purchasing a home within the city limits. This assistance can be used for down payment, closing cost and interest rate buy down.
Community Link's Veterans Homeownership program sells homes at an affordable rate to veterans who have worked through their asset-building program. The asset-building program provides classes and counseling services on homeownership and financial literacy.
The home is a 700-square-feet, one-bedroom home, that with a secondary residence, known as an accessory dwelling unit or ADU, at the back of the property. The ADU is separate from the primary residence and has its own entrance. Accessory dwelling units are rented out to generate additional income for the property owner.
Once a buyer is found, the veteran who purchases the home will use $30,000 in down payment assistance to make the purchase. Once complete, the sale will be structured to benefit both the veteran buying the home, as well as another low-income family who will rent out the accessory dwelling unit. The ADU will be priced at $900 per month — a price point affordable for a family earning 60% of the area median income ($56,520 a year for a family of four) — by
True Homes, the developer, landlord and property manager. Of the rental income from the ADU, $200 will go towards paying the veteran's real estate taxes and water. Finally, after 15 years of payments, the veteran will own the entire property.
Through this unique structure, House Charlotte and Community Link will help the veteran realize their goal of becoming a homeowner and assist a low-income renter simultaneously. Additionally, this structure provides a unique, innovative solution for long-term wealth building.
"This story has multiple dimensions with regard to wealth generation," said Ron Mason, manager of the city's House Charlotte program. "In the short-term, the party renting the ADU will benefit from the 60% AMI price point. The veteran will save money and gain supplemental monthly income from the $200 per month coming from the ADU. In addition, this arrangement will generate wealth for the veteran in the long-term when they become the owner of the entire property in 15 years."
To find out if you're eligible for the Veterans Homeownership Program,
contact Community Link or email Ronald Mason -