Up to $375,000 available for Affordable Housing and Community Development Activities

The Town of Chapel Hill released up to $375,000 to support local affordable housing and community development projects on February 2, 2026. Applications will be due at 12:00pm on Monday, March 2.

This year’s funding includes up to $375,000 in federal Community Development Block Grant (CDBG) funding. Up to $33,000 of this amount can support public service projects. The CDBG funding application and accompanying materials are available here.

Eligible uses of this funding include:

• Land Acquisition and Land Banking

• Rehabilitation and Redevelopment

• Future Development Planning

• Rental, Utility, and Relocation Assistance

• Financial Assistance to Homeowners

• Public Services

• Economic Development

The Town’s Affordable Housing and Community Connections Departments will hold a virtual information session for potential applicants at 10:00 am on Wednesday, February 11th, 2026. 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 Melissa Peters, Funding Programs Coordinator, at mpeters2@townofchapelhill.org for more information.

Town Releases Fiscal Year 2025 Affordable Housing Report

The Town has released the Affordable Housing Annual Report, which highlights our key progress for Fiscal Year 2025 (July 1, 2024 – June 30, 2025). 

Highlights from the report include:

• Launched a $20 million Affordable Housing Loan Fund.

• 1,300 affordable units in the project pipeline anticipated to be developed in the next 5 years. 

• Supported 4 Town employees with rental assistance to secure housing closer to where they work through our Employee Housing Program. 

• Developed 62 affordable units and preserved 161 affordable units with support from the Town. 

• Deployed $2.8M to support community partner projects and programs.

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

Council Approves $4.185 Million Funding Plan to Support 194 units

On September 10, the Chapel Hill Town Council approved a funding plan that allocates $4,185,000 from the Affordable Housing Funding Program to support 194 affordable housing units. A portion of the funding plan includes the first allocation of the $15 million in 2024 bond funding that was dedicated to affordable housing and the remainder of a 2018 affordable housing bond.

Funding awards include:

• $4 million to the Taft-Mills Group for Hillside Trace, a new construction project along the Town’s planned Bus Rapid Transit line that will bring 190 affordable apartments for households earning 60% or below the Area Median Income ($57,400 for a household of 4).

• $185,000 to HOPE NC to support the acquisition of 4 units from Habitat for Humanity’s Weavers Grove Community to serve very low income adults with intellectual and developmental disabilities.

“Through this funding plan, we’re making substantial progress toward our goal of creating 900 affordable housing units in five years,” said Sarah Viñas, Director of Affordable Housing and Community Connections. “Bond funding we’ve received in recent years is a vital part of reaching this goal and setting an example for what affordable housing progress can look like.”

Town staff received and reviewed four project applications in this funding round, which totaled to $5.3 million. The next round of affordable housing funding will likely be released in winter 2026.

Affordable Housing Tracker

The Town just released a new, interactive Affordable Housing Tracker, which shows progress on Town affordable housing funding since the first bond allocations in 2020. Check out the tracker here and learn more about affordable housing projects at chapelhillaffordablehousing.org.

Fiscal Year 2025 Annual Report Released

This past year, Affordable Housing and Community Connections continued advancing the Town Council’s affordable housing and human services goals. Highlights included:

• Supporting the development of 62 units and preservation of 29 units of affordable housing in the community, with an additional 1,300 units in the pipeline over next five years.

• Making strong progress in implementing our new Comprehensive Affordable Housing Plan, with 11 of the 13 plan recommendations achieved or underway.

• Improving the physical condition of our public housing, accomplishing 14 major renovation and modernization projects and improving our Physical Inspection Score provided by HUD from 52 to 74, our first passing score in close to a decade.

• 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, and Food Distribution.

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, see the full report here.

Tax Credit Award for Senior Affordable Housing in Partnership with DHIC

In August 2025, the Maddry Meadows affordable housing project in Chapel Hill received a 2025 9% Low-Income Housing Tax Credit (LIHTC) award from the North Carolina Housing Finance Agency. DHIC, Inc. is the developer for the project, which is located at 2510 Homestead Road. The LIHTC award will bring more than $11 million in tax credit equity and $2 million in state housing loans to the project. The Town committed an additional $1.25 million to the project from the local Affordable Housing Funding Program.

The Maddry Meadows project will include 53 affordable units for low-income senior households earning less than 60% of the Area Median Income, or about $50,000 to $60,000 per year depending on household size. Now that DHIC has secured funding, they will pursue the permits needed to break ground and expect to complete the project by Winter 2028.

“Several years ago, the Town starting building a pipeline of projects that could take advantage of this very competitive annual funding source,” says Sarah Viñas, Director of Affordable Housing and Community Connections. “We are very proud for a Chapel Hill project to receive this award for the fourth consecutive year. DHIC continues to serve as a regional leader on affordable housing and we look forward to partnering with such a strong organization again through this project!”

Town Releases Tropical Storm Chantal Assistance Resource Guide

Affordable Housing and Community Connections has assembled a resource guide for community members impacted by Tropical Storm Chantal. Our team has been working with more than 100 residents who were displaced from 37 of the Town’s public housing units after the storm, as well as residents of privately-owned residential communities in storm-impacted areas. Please help us share this information throughout our community.

Town to Release up to $4 million for Affordable Housing Projects

The Town of Chapel Hill released up to $4 million to support affordable housing projects on June 26, 2025. Applications will be due via email at 12:00pm on Thursday, July 31.  The funding application and accompanying materials are posted here.

This funding release includes $3.5 million from the 2024 bond referendum voters approved in November 2024. That bond included $15 million for affordable housing, including several affordable housing development projects on Town-owned land as well as partner projects. Staff estimate that the $15 million bond will support as many as 450 units of affordable housing.

“Now, more than ever, local governments like Chapel Hill have the opportunity to play a critical role in responding to the need for affordable housing by providing funding for projects.  We’re excited to deploy this bond and local funding to support the impactful work of our partners to create and preserve affordable housing in the community. Together, we’ll continue to add to the pipeline of over 1,200 units of affordable housing that will come online over the next five years,” says Sarah Viñas, Director of Affordable Housing and Community Connections.

The remaining $500,000 being released includes 2018 affordable housing bond funding and a portion of the local funding allocated to the Affordable Housing Funding Program (AHFP) that was included in the Town’s recently approved Fiscal Year 2026 budget.

Eligible uses of the funding include:

• Construction of New Affordable Housing

• Demolition and Site Improvements

• Land Acquisition and Land Banking (Land Banking only eligible for AHFP funding)

• Rehabilitation and Redevelopment

• Future Development Planning (AHFP only)

• Rental, Utility, and Relocation Assistance (AHFP only)

• Financial Assistance to Homeowners (AHFP only)

The Town’s Affordable Housing and Community Connections Department will hold a virtual information session for potential applicants at 10:00 am on Tuesday, July 8th, 2025. Town staff encourage both prior and new applicants to attend this webinar to learn more about the funding opportunity. Register for the webinar here.

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

Chapel Hill Town Council Approves $689,000 Funding Plan for Affordable Housing and Community Development Activities

Town of Chapel Hill Summer Youth Employment Program

On June 11th, Chapel Hill Town Council approved the 2025-2026 Annual Action Plan for the use of $689,588 of Community Development Block Grant (CDBG) funding provided through a grant from the U.S. Department of Housing and Urban Development (HUD). The Town of Chapel Hill has received CDBG funding yearly since 1975 for affordable housing, community development, and public service projects that benefit low to moderate-income residents in Chapel Hill. Over the last 20 years, Chapel Hill has deployed over $10.5 million in CDBG funding into the community.

Community Home Trust acquisition of a single-family home from the Northside Neighborhood Initiative

This year’s plan includes funding for:

• EMPOWERment Inc.’s rehabilitation of 2 affordable rentals in the Pine Knolls and Northside communities;

• Habitat for Humanity’s Home Preservation & Comprehensive Rehabilitation Program, which will support major and minor repairs for 6 low-to-moderate income homebuyers;

• Home repairs for at least 8 low-income homeowners through a partnership with Rebuilding Together of the Triangle and the Orange County Home Preservation Coalition;

• Training and skill development for 25 individuals and repairs for 30 elderly households through Hope Renovations’ construction training program;

• 6 rehabilitations for the Town’s Transitional Housing Program;

• Part-time employment for 14 youth through the Town’s Summer Youth Employment Program;

• Transplanting Traditions Community Farm’s Growers School that will provide small business development and training for 15 refugee-owned farms;

• Inter-Faith Council for Social Service’s case management for households experiencing homelessness to access resources and secure permanent housing; and

• Crisis case management for limited English-proficient refugee and immigrant households experiencing housing instability or homelessness provided by Refugee Community Partnership’s multilingual staff.

To learn more about the Town’s CDBG program, visit www.townofchapelhill.org/cdbg or contact Melissa Peters, Funding Programs Coordinator, at mpeters2@townofchapelhill.org.

Council Approves Largest Affordable Housing Community in Chapel Hill History

On May 7, 2025, the Chapel Hill Town Council unanimously approved the Hillside Trace affordable housing community. The approval included a conditional rezoning of 3 adjacent parcels located at 607-617 Martin Luther King Jr., Blvd. The Taft-Mills Group, who is partnering with the Community Home Trust to develop the property, proposed the construction of 190 affordable apartments for households earning less than 60 percent of the Area Median Income (AMI). The apartments will include a mix of 1, 2, and 3-bedroom units.

“We are thrilled that the Council has approved the largest affordable housing project in the Town’s history,” says Sarah Viñas, Director of the Town’s Affordable Housing & Community Connections Department. “This project will make substantial progress toward the Town’s affordable housing goals and is in an ideal location with its proximity to jobs, downtown amenities and public transit.”

The project is located less than a mile from downtown and sits along the Town’s proposed Bus Rapid Transit (BRT) line. The project supports the Town’s goals for high density development in this area and contributes to the Town’s Affordable Housing Plan goal of adding as many as 900 units of affordable housing over the next 5 years. 

The Taft-Mills Group will apply for 4% Low Income Housing Tax Credits (LIHTC), tax exempt bonds, and local funding to help finance the project.

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.