What is Affordable Housing?
The City is committed to creating, preserving, and encouraging the development of affordable housing units in Raleigh. Beginning in 2016, the City established an aspirational goal to create 570 affordable housing units a year for 10-years, with a grand total of 5,700 housing units by 2026.
So far, the City has completed about half of the 10-year goal.
The City has created and preserved 2,872 affordable housing units to date, and the City is projecting to complete another 544 units this current fiscal year.
The City’s efforts primarily serve low- and moderate-income (LMI) individuals and families. Income limits are set each year by the U.S. Department of Housing and Urban Development and are based on the Area Median Income (AMI) per city or county.
What is Affordable Housing?
While housing affordability is impacted by construction costs and the overall supply of available homes, in the rental market, one factor stands above all others: Increases in household income have not kept pace with increases in rent in recent decades. Moreover, the “gap” is projected to continue increasing.
The U.S. Department of Housing and Urban Development (HUD) defines affordable housing as when the rent or mortgage (principal, interest, and taxes included) does not exceed 30% of the household’s gross monthly income. Over 33% of households in Raleigh are “cost-burdened “or “severely cost-burdened,” spending 30% or more of their gross income on housing costs per month.
Low- and moderate-income households are most impacted by rising housing costs. The City provides homebuyer assistance, and homeowner repair and rehabilitation programs for households earning 80% of the AMI or below. It also provides low-cost loans to housing developers to increase the supply of affordable rental units.
How We Work to Meet Our Goals
The affordable housing goal counts housing units that have been created and/or preserved through the following four activities:
- New single-family houses and town-homes constructed for affordable home buyers
- Affordable rental apartments that are newly constructed or preserved
- Homebuyers receiving financial assistance through the Raleigh homebuyer assistance program
- Owner-occupied homes repaired through the Homeowner Rehab and Limited Repair Programs
Affordable Housing Bond
The Affordable Housing Bond is an investment to support and enrich the lives of residents with household incomes that are 30%, 50%, 60%, and 80% of AMI. The bond, totaling $80 million, will be spent in stages over the next five years. To learn more, please visit the links below:
Affordable housing is important to City residents with stable housing benefit from increased family stability, improved education opportunities and career advancement, and reduced risks of homelessness. Affordable housing is also a key factor in community vitality and continued economic growth.
The City will continue to work toward the aspirational affordable housing goal, and periodic updates will be added to the Housing and Neighborhoods website.