Affordable Housing Bond Status Reports


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Status Report - June 2022 Status Report - November 2021 Status Report - May 2021  

Status Report - June 2022

On May 13, 2021, staff presented to City Council a proposed timeline for soliciting small-scale rental development proposals with Affordable Housing Bond proceeds that would be available during the first year of bond funding. City staff suggested making City-owned lots available via long-term lease to enhance project viability and affordability of the units. Council approved the staff recommendations.

A Notice of Funding Availability (NOFA) was issued on October 25, 2021, making 20 City-owned lots available via long-term land leases, as well as $2 million in Bond proceeds for infill development of transitional housing and/or affordable rental projects. The NOFA specified that one-third of the units must target households earning no more than 30% of the Area Median Income (AMI). The funding and/or building sites were offered to non-profit developers or to partnerships between a mission-based non-profit and a for-profit developer.

The City received four applications. For the initial pilot of this five-year program, staff recommended partnering with Southeast Raleigh Promise. The proposed development plan includes the new construction of 27 affordable rental units across ten City-owned parcels. During the City Council Afternoon Meeting on June 21, Council approved the staff recommendation of extending a conditional commitment of up to $2 million in 2020 Affordable Housing Bond proceeds and City-owned building sites via long-term land leases to Southeast Raleigh Promise. 

View the memo and presentation in BoardDocs
Watch the June 21, 2022 Council Meeting 

Status Report - November 2021

In May, a notice of funding availability (NOFA) was issued for $7 million in 2020 Affordable Housing Bond funds for the development of permanent supportive housing and housing serving chronically homeless individuals.

CASA submitted a proposal requesting the available $7 million in bond funds for the development of King’s Ridge recognizing that, if awarded, the project would still have a financing gap. The development will include 70 studios and 1 bedroom apartments, as well as 30 units comprised of two and three-bedroom apartments for families.

During the November 16th afternoon work session, City Council approved the Housing and Neighborhoods staff recommendation to use federal HOME funds and HOME funds designated for Community Housing Development Organizations to close the remaining financing gap. The HOME funds will provide additional subsidies for the housing voucher-supported units. The project's new total is $8,464,795.

Status Report - May 2021  

The Housing and Neighborhoods Department provided an update on partnering with Wake County in the acquisition/preservation fund, public-private partnerships, and the Affordable Housing Bond Executive Subcommittee. 

  • Partnership with Wake County: 
    • City staff is represented on the fund administrator selection team. 
    • The estimated administrator selection will be August 2021. 
    • The fund is projected to be fully operational in early 2022. 
  • Public-Private Partnerships: 
    • Healing Transitions: The commitment letter for $3 million has been executed by both parties. City funds will be used toward the renovation/expansion of the men's campus. The loan documents will be drafted for closing after July 1. The loan will be 0% interest, no repayment, and forgiven by September 27, 2047. 
    • Permanent supportive housing: The NOFA has been issued with submittals due June 30. A request is anticipated from CASA for King's Ridge for 100 units. Support is also being requested from Wake County. Raleigh Housing Authority and Wake Housing Authority are anticipated to provide project-based vouchers.
    • Small-scale, non-profit projects: Staff recommends the RFP process to solicit non-profit proposals for the following projects: non-congregate (family) emergency shelter, transitional housing, and other affordable rental projects having one-third of units at 30% AMI. City staff recommends looking at other resources and will provide a more detailed report to City Council in June. 
  • Affordable Housing Bond Executive Subcommittee:  
    • The Executive Subcommittee is led by Co-Chairs Paul Kane (Home Builders Association of Raleigh) and Yvette Holmes (Southeast Raleigh Promise). 
    • The first meeting is pending.

The City Council approved for staff to proceed with Wake County in an RFP process to solicit proposals to expand non-congregate (family) emergency shelter capacity, as well as provide opportunities for transitional housing and small-scale affordable housing projects. City Council also supported including the anticipated HOME funds and the land lease of City-owned lots in the RFP. 

View the May 18, 2021 Presentation 

Contact

 

Community and Economic Development
cd.info@raleighnc.gov

Department:
Housing and Neighborhoods
Service Categories:
Community and Small Business Development

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