Town Released First Affordable Housing Quarterly Report for Fiscal Year 2024

The Town has released the first Fiscal Year 2024 Affordable Housing Quarterly Report which highlights the Town’s housing needs and progress towards reaching Council’s affordable housing goals.

Highlights from the Report for the period from July 1 – October 31, 2023 include:

• Town Council approved up to 700 housing units in two projects that will include about 130 units (20%) of affordable housing.

• Town Council unanimously approved a Comprehensive Affordable Housing Plan and Investment Strategy. The plan maps out the Town’s affordable housing work over the next five years and calls for the dedication of $30-$50 million to support the development of as many as 900 new affordable homes and the preservation of as many as 400 affordable homes. 

• The Tanyard Branch Trace (Jay Street) affordable housing development project on Town-owned land received a 9% Low Income Housing Tax Credit award from the North Carolina Housing Finance Agency. The award brings more than $10 million in funding to support the development of 48 units on Jay Street. The units will be affordable to households earning less than 60% of the Area Median Income (about $60,000 for a family of four).

• A low-income first-time homebuyer closed on a newly developed unit in the Northside Neighborhood and local affordable housing partners managed the preservation of five affordable housing units.

• 156 Chapel Hill households received assistance through the County-wide Emergency Housing Assistance Program, totaling $502,228 in assistance provided. 

Town Advances Affordable Housing Goals with Selection of Development Partner for Legion Property

The Town of Chapel Hill is pleased to announce they have selected DHIC, Inc. as the affordable housing development partner for the Legion Property. The Town’s Affordable Housing and Community Connections staff led a competitive selection process and chose DHIC because of their track record of success in planning, building, and managing comparable affordable housing communities.

DHIC is a Raleigh-based nonprofit that develops affordable housing communities in the Triangle and throughout North Carolina. Since 1974, they have built more than 3,200 affordable rental apartment homes with more than 1,000 units currently in development. The Town previously partnered with DHIC on Greenfield Place and Greenfield Commons, two award-winning, affordable rental communities in the Blue Hill district.

DHIC’s preliminary concept includes approximately 160 affordable units for households earning less than 60% of the Area Median Income. Their plans also emphasize connectivity with both the future park planned for the property and the existing neighborhoods surrounding the site.

DHIC also provides a variety of housing support services, another factor that went into their selection, according to Sarah Viñas, Director of Affordable Housing and Community Connections. “DHIC is well-respected both for their developments and for their holistic approach to supporting families and individuals with limited incomes in finding quality housing that meets their needs.”

DHIC’s selection is another step in the Town Council’s ongoing work to realize the future vision for the Legion Property.

• In December 2022, Council approved the future uses of the site to include affordable housing, a public park, and preserved natural areas.

• In May 2023, Council authorized staff to select a partner to develop affordable housing on the site.

• In 2024, planning for the public park will begin as part of the Parks and Recreation Master Plan process, which will identify and prioritize Town-wide needs for parks, recreation, and open space.

“We are pleased to be able to continue to move forward and reach this important milestone to deliver a project that addresses the need for affordable housing and park space in a cohesive project,” said Viñas. “In Chapel Hill, every affordable housing partner has waiting lists that continue to grow. The need is clear and the more units we can get in the pipeline, the sooner those needs can be addressed.”

Viñas also noted that while the selection of DHIC is a major milestone, there are still many steps in the development process over the next 3-5 years, including community engagement with current neighbors and future community members.

For more information about the Town’s affordable housing plans and goals, visit chapelhillaffordablehousing.org For more information about future plans for the Legion property, visit townofchapelhill.org/legion

Apply Now for Community Development Block Grant Funding

Organizations that operate programs or provide housing to benefit low to moderate-income residents of Chapel Hill can apply for Community Development Block Grant (CDBG) funding.

Applications are due by noon on January 12, 2024. 

Discuss your funding proposal with Town staff in a one-on-one pre-application meeting—contact Megan Culp at 919-968-2877 or cdbg@townofchapelhill.org.

Public Hearing on 2024-2025 Community Development Block Grant (CDBG) Annual Public Needs Assessment

The federal CDBG Program, operated by the US Department of Housing and Urban Development, provides communities with resources to address a wide range of community needs to serve low-to-moderate income residents including affordable housing, community services, job training, and youth services. The Town of Chapel Hill has received federal CDBG funds since 1975 and has used these funds to support a variety of affordable housing initiatives and community service programs.

The Chapel Hill Town Council will hold a public hearing at 7 p.m. Wednesday, Nov. 15, in the Council Chamber of Chapel Hill Town Hall to receive citizen input on the Town’s community development needs. Public comments will be used to help determine specific funding priorities, and help identify potential uses of 2024-2025 federal Community Development Block Grant (CDBG) funds. More information can be found on the website at www.townofchapelhill.org/cdbg.  For questions or to submit written comments on Town affordable housing and social service needs, email us at CDBG@townofchapelhill.org.

Council Approves Comprehensive Affordable Housing Plan and Investment Strategy

The Chapel Hill Town Council recently unanimously approved an Affordable Housing Plan and Investment Strategy (the Plan). The Plan outlines the key areas of focus for the Town’s affordable housing work over the next five years and the resources needed for implementation.

“Council’s unanimous approval of our Affordable Housing Plan and Investment Strategy represents a bold step forward in the Town’s affordable housing work,” says Sarah Viñas, Director of Affordable Housing and Community Connections. “This is the first comprehensive affordable housing plan and investment strategy in the Town’s history. Implementing the Plan will expand on our long-standing strong commitment to affordable housing. It will also further center racial equity and our new Complete Community Framework in our work going forward.”

The Plan estimates that implementing the recommended activities and funding will support the development of as many as 900 new affordable homes. It will also preserve as many as 400 affordable homes over the next five years.

Learn More about the Affordable Housing Plan

The Plan summarizes key housing challenges facing the Town and affordability gaps. It also includes specific recommendations to complement the Town’s already robust affordable housing program, which fall into four goal areas:

• Decrease barriers to building homes

• Expand and preserve affordable homeownership

• Expand and preserve affordable rental housing

• Increase staffing and funding capacity

The Investment Strategy estimates the Town will need $50 million over the next five years to implement the Plan.

View the approved Affordable Housing Plan here. Staff are now in the process of incorporating the Plan recommendations into their affordable housing workplan and exploring options for implementation of the Investment Strategy.

Annual Affordable Housing Report Released

Check out our latest Affordable Housing Annual Report, highlighting our key progress for Fiscal Year 2023 (July 1, 2022 - June 30, 2023).

Key Results include:

• $10 million awarded to community partners for affordable housing projects, which will provide support to the development of 300 new units.

• UNC Health committed $5 million to initiate an affordable housing revolving loan fund.

• 163 affordable units received development approval from Council in six market-rate projects, or about 10 percent of approved units.

• The Perry Place affordable housing community is fully occupied, including 24 units in Chapel Hill.

• The Town worked with a consultant team from HR&A Advisors to create an affordable housing plan and investment strategy, which charts a path forward for the Town’s key affordable housing priorities over the next 5 years.

Affordable Housing and Community Connections Releases Annual Report

Fiscal Year 2023 (July 1, 2022 – June 30, 2023) was a big year 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 equitable community engagement goals.  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.  There is still so much more work to be done and our team looks forward to working together to continue addressing some of the community’s greatest challenges. 

To learn more about highlights of our work over the last year, see our Annual Report.

Town Secures Historical $5M Contribution from UNC Health to Establish Affordable Housing Revolving Loan Fund

On June 21, the Town Council approved the Eastowne development, a project of UNC Health to expand their existing medical office facilities at the Eastowne campus in Chapel Hill. As a condition of the approval, UNC Health committed to providing $5 Million to the Town to establish an Affordable Housing Revolving Loan Fund.

The Affordable Housing Revolving Loan Fund will be used to preserve and create between 500-1,000 units of affordable housing in Chapel Hill. The Fund will leverage substantial additional resources from other sources and allow the Town to establish a loan fund of $20-40 Million.

"The Town is thrilled to see UNC Health come to the table as a partner to address our community's affordable housing challenge in such a meaningful way," says Sarah Vinas, Director of Affordable Housing and Community Connections. "This is an unprecedented level of investment in affordable housing by an institutional partner that will allow the Town to preserve and build hundreds of units of affordable housing in the community."

Affordable Housing and Community Connections will soon move forward with selecting a Fund administrator and work to secure additional contributions to the Fund.

Chapel Hill Approves Source of Income Protections Policy

On May 24, 2023, the Chapel Hill Town Council approved a Source of Income Protections policy. The policy requires housing developments that receive Town funding or involve the conveyance of Town property to accept all lawful sources of income, including housing choice vouchers.

The new policy is designed to prevent discrimination based on source of income and increase the supply of units that accept income-based housing subsidies. 

Housing choices vouchers and similar housing subsidy programs provide valuable financial assistance for low-income families seeking affordable housing.  However, there are limited opportunities for households with housing subsidies to use their voucher within Orange County, and especially in the Town of Chapel Hill. Despite generous incentive packages and outreach efforts to landlords, typically there are around 100 unleased vouchers at any given time, or about 15% of the County’s available vouchers.

Sarah Viñas, Director of the Town’s Department of Affordable Housing and Community Connections explained that “because North Carolina state law does not include source of income as a protected category in housing discrimination, municipalities are limited in what they can require of landlords.”

Several other North Carolina municipalities have addressed this by adopting narrow policies focused only on housing that receives local resources.

“This policy takes an important step forward in expanding protections for households relying on housing subsidies to live in Chapel Hill,” Viñas said.

The new policy supports the Town Council’s 2023-25 strategic focus area for Affordable Housing and Housing Production that seeks to increase housing access across a range of incomes and housing types and achieve equitable housing outcomes for historically marginalized populations.  The Town will begin implementing the policy immediately.

Chapel Hill Town Council Approves $629,000 CDBG Plan for Affordable Housing and Community Development

Chapel Hill Town Council recently approved the 2023-2024 Annual Action Plan for the use of $629,892 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 from HUD each year since 1975 to be used for affordable housing, community development, and public service projects proposed by local non-profits 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.

This year’s plan includes funding for:

• EMPOWERment Inc.’s acquisition of 2 affordable rentals in Pine Knolls;

• The purchase of a house in Northside neighborhood to be rehabilitated and resold to one of Community Home Trust’s low-to-moderate income homebuyers;

• ·Home repairs for at least 7 low-income homeowners through a partnership with Rebuilding Together of the Triangle and the Orange County Home Preservation Coalition;

• Homeownership counseling and down payment assistance for 8 low-income homebuyers through an expansion of Community Empowerment Fund’s successful first-time homebuyers 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 13 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 Megan Culp, Community Development Program Manager, at mculp@townofchapelhill.org.