Council Approves $1.3 million in Funding to Support 57 Affordable Housing Units

On April 23, the Chapel Hill Town Council approved the allocation of $1,335,000 from the Town’s local Affordable Housing Funding Program. The funding will support the development of 53 new affordable units and preservation of 4 affordable units in the community. About 25 percent of the funded units will serve households earning 30 percent or less of the Area Median Income (AMI).

Funding awards include: 

• $1,250,000 to DHIC to support the construction of 53 affordable apartments for seniors in the Maddry Meadows project.

• $85,000 to EmPOWERment, Inc. for exterior renovations on 4 units in the Creekside Trail community (formerly University Gardens).

“Providing funding to support these projects advances the Town’s Affordable Housing Plan, creating new affordable rental housing opportunities for extremely low income people and preserving existing affordable housing in Chapel Hill,” says Sarah Vinas, Director of Affordable Housing and Community Connections. “We appreciate the ongoing commitment of our community partners, now more than ever, as we work together to address the region’s dire need for affordable housing.”

Town staff considered six funding requests totaling nearly $2.5 million in this funding round.  The next round of local funding will be released this summer, which will include up to $3.5 million in funding from the 2024 bond referendum.

Council Approves 53-unit Affordable Housing Community on Homestead Road

On April 23, 2025, the Chapel Hill Town Council unanimously approved the Maddry Meadows affordable housing community. The approval included a conditional rezoning of the parcel located at 2510 Homestead Road, across the street from the Orange County Seymour Senior Center. The developer, DHIC, has proposed the construction of 53 affordable apartments for households ages 55 and older earning less than 60 percent of the Area Median Income (AMI). For 2025, 60% AMI is about $48,600 for a 1-person household and $55,500 for a 2-person household. 13 of the units will serve households earning 30 percent or less of AMI.

The project is applying for a 2025 Low Income Housing Tax Credit (LIHTC) award, which could bring more than $10 million in funding to the project. Town Council approved $1.25 million in local funding for the project the same night.

The project utilized the Town’s expedited review process for affordable housing, which allows residential projects that include at least 25 percent of units as affordable to go through the rezoning process in under 6 months.

Town Making Progress in Implementing Affordable Housing Plan

Affordable Housing & Community Connections began implementing the Affordable Housing Plan and Investment Strategy in Fiscal Year 2025 and has created this Implementation Update Report to track progress on the Plan’s 14 recommendations. Council approved the Plan in September 2023, which outlines four key focus areas for the Town’s affordable housing work over the next five years.

Key accomplishments in the first two quarters of implementation include:

• Town allocated $100,000 to support 132 households in paying their 2024 property tax bill.

• Voters approved a 2024 bond referendum dedicating $15 million to affordable housing activities.

• Council approved giving staff authority to establish and administer a single Affordable Housing Funding Program for its local funding.

• Town and its partners, Self-Help and UNC Health, launched a $20 million Affordable Housing Loan Fund.

• Town hired and onboarded 3 new staff.

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

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

For the second year in a row, 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. This funding follows one of the recommendations in the Town’s Council-approved Affordable Housing Plan and Investment Strategy as a way of expanding and preserving affordable homeownership.

This year, 132 low-income households were assisted, many of whom were elderly and people of color. See below for more details about the program results. Across the two years of the program, a total of 175 households received assistance; about half received assistance in both years.

For more information, please contact Town of Chapel Hill Affordable Housing and Community Connections at (919) 968-2743 or housingandcommunity@townofchapelhill.org.

Town Releases Affordable Housing FY25 Mid-Year Report

Town staff released the Fiscal Year 2025 Affordable Housing Mid-Year Report on March 31, 2025. The report highlights the Town’s housing needs and provides updates on the Town’s key affordable housing activities as of December 2024.

Key highlights from the report for the period from July 1 – December 31, 2024 include:

• The Town launched the $10 million Affordable Housing Loan Fund in partnership with Self-Help Ventures Fund and UNC Hospitals.

• 25 affordable rental units opened at 900 Willow at University Place.

• Habitat for Humanity completed their Gattis Court project in the Northside Neighborhood and the first 9 units in their Weavers Grove project.

• The Town funded the rehabilitation of 6 units owned by low-income homeowners.

• The Longleaf Trace project received a 2024 Low-Income Housing Tax Credit award to support the development of 48 affordable units for low-income seniors.

For the remaining half of the fiscal year, staff will focus on reaching key milestones including the allocation of local affordable housing funding, the release of the first round of 2024 affordable housing bond funding, and moving toward groundbreaking on two development projects on Town-owned land.

Town Launches $20M Affordable Housing Loan Fund

The Town of Chapel Hill is excited to launch a $20 million Affordable Housing Loan Fund, in partnership with UNC Health and Self-Help Ventures Fund. The fund is expected to support the preservation or creation of at least 600 affordable housing units over the next 20 years.

In 2023, the Town and UNC Health committed a total of $5.7 million in seed funding. Self-Help Ventures Fund leveraged the investments to attract additional capital from banking partners to create the $20 million fund. The new fund will provide below-market loans to support the acquisition, preservation, and creation of affordable housing in Chapel Hill.

“The Town is thrilled to launch this new tool to support the creation and preservation of affordable housing in Chapel Hill,” said Sarah Vinas, Director of the Town’s Affordable Housing & Community Connections Department. “We appreciate UNC Health and Self Help’s partnership on the Loan Fund. This is a great example of what we can accomplish together when we work across industries to address one of the community’s greatest challenges.”

“UNC Health is proud to partner with the Town of Chapel Hill on this important initiative. Affordable housing is an issue impacting the entire community,” explained Janet Hadar, President of UNC Hospitals. “As individual entities we can’t solve this crisis alone, but by working together, we can make a more meaningful change and positively impact residents and the community. We look forward to seeing what the loan fund will accomplish.”

The creation of the Affordable Housing Loan Fund aligns with the Town’s Affordable Housing Plan, which was approved by the Town Council in 2023 and advances the Town’s affordable housing goals.

The Town selected Self-Help Ventures Fund as the administrator of the Affordable Housing Loan Fund. Self-Help is a leading national Community Development Financial Institution (CDFI) with extensive lending and underwriting experience, as well as affordable housing development experience across the Triangle and state of North Carolina.

"Building stronger communities in the Triangle through partnerships that support affordable housing aligns perfectly with our commitment to work for economic opportunity for all," shared JJ Froehlich, Housing Sector Leader with Self-Help's Commercial Lending team. “Creating and preserving affordable housing is a vital part of our mission.”

Two types of loans are available through the fund. Loans for preservation or creation of affordable housing may range from a minimum size of $500,000 up to $7 million and can either serve as 5-year bridge financing or 15-year permanent subordinate financing. As Fund Administrator, Self-Help will oversee the review, evaluation, and underwriting of loan applications and the monitoring of all loans issued. Developers interested in applying for loans should contact the Self-Help Ventures Fund lending team at multifamilyloans@self-help.org.

Up to $1.75 million available for Affordable Housing and Community Development Activities

The Town of Chapel Hill released up to $1.75 million to support affordable housing and community development projects on February 3, 2025. Applications will be due at 12:00pm on Monday, March 3.

This year’s funding includes up to $1.3 million from the Town’s local Affordable Housing Funding Program (AHFP) and up to $450,000 in federal Community Development Block Grant (CDBG) funding. This year, the Town is coordinating the release of its local and federal CDBG funding to streamline the application process. The common funding application and accompanying materials are available here.

“The Town has streamlined our affordable housing funding program to increase efficiency, transparency, and equity. We look forward to deploying funding through this application cycle to continue making progress to address the vital need for affordable housing in the community,” says Sarah Vinas, Director of Affordable Housing and Community Connections.

Eligible uses of this funding include:

• Construction of New Affordable Housing

• Land Acquisition and Land Banking

• Rehabilitation and Redevelopment

• Future Development Planning

• Rental, Utility, and Relocation Assistance

• Financial Assistance to Homeowners

• Public Services (CDBG funding only)

• Economic Development (CDBG funding only)

The Town’s Affordable Housing and Community Connections Departments will hold a virtual information session for potential applicants at 10:00 am on Tuesday, February 11th, 2025. Town staff encourage both prior and new applicants to attend this webinar to learn about important updates about the process and application. Information on how to register for the webinar will be posted here.

Email Emily Holt, Affordable Housing Manager, at eholt@townofchapelhill.org for more information.

Town of Chapel Hill Bond Referendum Approved, including $15M for Affordable Housing

Chapel Hill voters approved a municipal bond referendum on November 5, 2024, with support from 73% of voters. The bonds will allow the Town to borrow up to $44 million in general obligation bonds, including $15 million for affordable housing. General obligation bonds are one of the most cost-effective ways for cities and towns to make major infrastructure investments.

"Chapel Hill residents have overwhelmingly reaffirmed their support for affordable housing by approving the recent affordable housing bond.  Our team is ready to move forward quickly to put the bond funding to good use addressing the many needs for more affordable housing in the community,” says Sarah Vinas, Director of Affordable Housing and Community Connections.   

The $15 million for affordable housing will support implementation of the Town’s Affordable Housing Plan & Investment Strategy that Council adopted in September 2023. That plan makes recommendations for the Town’s affordable housing work over the next five years, which it estimates will require $50 million to implement.  Full implementation of the Plan is estimated to support the development of as many as 900 new affordable homes and the preservation of as many as 400.

In spring 2024, Council discussed potential projects that the 2024 bond could support. The affordable housing funds could support several Town-initiated development and preservation projects on Town-owned land as well as partner projects.

In addition to the $15 million for affordable housing, the referendum includes the following bond orders and other potential projects:

·       $15 million for public facilities$7.5 million for streets and sidewalks  $4.5 million for parks and recreation

·       $2 million for greenwaysTown staff are currently designing the allocation process for the 2024 affordable housing bond. For more information, see the 2024 Town Bond Referendum webpage.

Town Releases Fiscal Year 2024 Affordable Housing Annual Report

The Town has released the Affordable Housing Annual Report, which highlights our key progress for Fiscal Year 2024 (July 1, 2023 – June 30, 2024). 

Highlights from the report include:

• Breaking ground on the Trinity Court public housing redevelopment.

• 1,000 affordable units in the project pipeline anticipated to be developed in the next 5 years. 

• Receipt of a $1.5M Community Project Funding award from Congresswomen Foushee’s office to support the Tanyard Branch Trace project. 

• Assisted 4 Town employees with securing housing closer to where they work through our Employee Housing Program. 

• Developed 6 affordable units and preserved 164 affordable units with support from the Town. 

To view an interactive version of the data in this report, go to the Affordable Housing Dashboard. 

Fiscal Year 2024 Annual Report Released

Fiscal Year 2024 Annual Report

This past year was one of growth and change for Affordable Housing and Community Connections. Together with our partners, our team achieved many key milestones to continue advancing the Town Council’s affordable housing and community connections goals. Highlights included:

• Unanimous approval by Council of our first-ever Comprehensive Affordable Housing Plan.

• Breaking ground on Trinity Court public housing redevelopment.

• Leveraging funding to support projects, including a $1.5M Community Project Funding award from Congresswoman Foushee's office.

• Enhancing our focus on public housing resident engagement and maintenance of our units, hosting  neighborhood Meet and Greets, completing major repair projects, and more.

• Continuing to lead programs and initiatives that reach the Town's under-engaged populations and meet vital community needs, such as the Summer Youth Employment Program, Cookies and Community, Peoples Academy, Human Services, and Food Distribution.

• Merging together our Public Housing and Affordable Housing & Community Connections departments into one cohesive team working towards a shared mission.

Thank you to all of the residents and community partners who contributed to our shared efforts to build an inclusive community where all residents have access to affordable housing and opportunities to thrive. 

To learn more about our work over the last year, check out our Annual Report.