N.C. Office of Recovery and Resiliency awards an additional $22.3 million for affordable housing
The N.C. Office of Recovery and Resiliency (NCORR) has awarded $22.3 million from the Affordable Housing Development Fund (AHDF) to three state municipalities for new multi-family housing projects. This second round of AHDF funding encouraged local governments to apply for gap financing for multi-family housing rehabilitation and construction outside of the 100-year floodplain.
A total of $22.3 million has been allocated by NCORR for shovel-ready projects that focus on community resilience. The new multi-family projects will increase the availability of safe, affordable housing in areas of the state that experienced major damage from hurricanes Matthew and Florence.
“Rebuilding smarter and stronger includes providing safe, affordable housing to meet the needs of North Carolina families,” said Governor Roy Cooper. “By leveraging these federal dollars through local partnerships, we’re increasing community resilience for future storms while ensuring our state is better prepared for climate change impacts.”
Local governments, in partnership with low-income housing tax credit developers, were encouraged to apply for funding if a local affordable housing project approved for the 4 percent Low Income Housing Tax Credit (LIHTC) program between 2018-2022 needed additional gap financing. The 4 percent LIHTC program helps fund affordable housing construction and rehabilitation through tax credits and tax-exempt bonds.
The first grant recipient, City of Greenville, will use the award to finance Arlington Trace, a 180-unit affordable housing development, which will include 18 units to be used as transitional housing for populations with a greater risk of homelessness. The affordable housing community is being developed by a local builder, Taft-Mills Group, and includes an investment of $31.6 million. Of that amount, $1 million is from federal HOME funding and $5 million from AHDF, which will allow the project to break ground. Rent rates at Arlington Trace will be affordable for families who make up to 60 percent of the county’s area median income.
The second recipient of AHDF funds, City of Wilmington, will develop Starway Village, a multi-family community with 278 units including 20 fully accessible ADA units. Wilmington City Council voted to use $3.5 million in American Rescue Plan funding toward the affordable housing project, while New Hanover County Commissioners approved $1.89 million in ARPA funds; with NCORR’s grant of $9 million making up the gap in funding for the project. The housing community, to be built by Bradley Housing Developers, LLC, is an example of redevelopment in a prime location, a former drive-in movie theatre spot near key amenities. Units will be affordable to households that make up 60 percent of the area median income.
The final recipient of the long-term affordable housing award is Morehead City, which plans to build Elijah’s Landing Apartments, a 168-unit multi-family development on almost 12 acres in the central business corridor of the city. The project was funded by $13.2 million through the 4 percent LIHTC program facilitated by CAHEC Capital Equity, a HUD multifamily loan of $14.2 million, and bridge gap funding from NCORR in the form of a $8.3 million award. The development will include one-, two- and three-bedroom affordable work force housing units built by local builder East Carolina Community Development Inc.
“Local government funding can only go so far, and these HUD long-term disaster recovery funds are ideal for long-term affordable rental housing projects to replenish those units destroyed by storms,” said NCORR Director Laura Hogshead.
Eligible counties include those that were federally- and state-identified as “most impacted and distressed” (MID) due to Hurricane Matthew and/or Hurricane Florence. For a list of counties, see the online map: Most Impacted and Distressed Counties.
The third round of AHDF funding is planned for 2023 and will support other types of affordable housing projects in storm-impacted areas.
The Affordable Housing Development Fund Program is supported by the North Carolina’s HUD Community Development Block Grant–Disaster Recovery funding for hurricanes Matthew and Florence. It is one of multiple housing programs overseen by NCORR through its Community Development Office, which also administers the Multi-family Development Fund, Public Housing Restoration Fund and Infrastructure Program. In addition to disaster recovery and affordable housing, the office manages programs that support resiliency, mitigation, strategic buyout, infrastructure, local government grants and loans, and pandemic-related rent and utility assistance.