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.
