More affordable housing could be coming to Wake County thanks to tax credit approval recommendations today from the Wake County Board of Commissioners. They unanimously recommended $11.8 million in funding for six development projects in Cary, Knightdale, Raleigh and Rolesville, paving the way for the projects to now be submitted to the North Carolina Housing Finance Agency for final approval.
“We are committed to enhancing our stock of affordable homes to meet the needs of our diverse community,” said Wake County Commissioner Dr. James West. “Our recommendation for this funding today means many households could soon have equitable access to safe, affordable housing, making for stable, secure living and upward mobility.”
The new sites would bring 515 new units to the area, which would bring the total number of units created or preserved since the Housing Department launched the new Affordable Housing Development Program (AHDP) in 2019 to 3,373.
The projects are:
- $1,198,000 for Hampton Springs Apartments in Raleigh (56 affordable senior units)
- $700,000 for Lake Haven Apartments in Raleigh (56 affordable senior units)
- $4,000,000 for Birch and Branch Apartments in Raleigh (180 affordable family units)
- $1,510,000 for Rose Park Manor Apartments in Cary (81 affordable senior units)
- $2,700,000 for Knight’s Court in Knightdale (78 affordable senior units)
- $1,700,000 for Oak Grove Crossing Apartments in Rolesville (64 affordable family units)
All 515 of these new units would serve low-income households. Of the new units, 242 will serve households earning 50% of the area median income (AMI) or below, and 141 of those will serve households earning 30% AMI or below.
Each year, the Wake County Housing Affordability and Community Revitalization Department issues a request for proposals from developers willing to create new housing at affordability levels the market will not naturally produce. Wake County then provides gap financing through a mix of county and federal dollars combined with Federal Low-Income Housing Tax Credits and other state funds administered by the North Carolina Housing Finance Agency.
With NCHFA approval, developers can begin working with the respective municipalities to launch the building process. All construction must be completed within the next two years.
The amount of funding needed to create affordable housing has increased significantly over the past few years. Per-unit construction costs have increased 40% from 2019, based on cost information received from developers. Interest rates have increased significantly, and land costs continue to escalate. The combination of these elements increases the amount of gap financing required to make developments feasible.
The Commissioners' action today directly supports the 20-year Affordable Housing Plan approved in Oct. 2017. It also aligns with their Community Health and Vitality goal of creating affordable housing opportunities and supporting efforts to end homelessness.
