In high-cost markets like Raleigh, building housing is expensive. As of January 2024, the average cost to build an affordable rental unit is approximately $240,000. Affordable rental housing is a key piece of the affordable housing puzzle. By creating affordable rental units, we offer long-term stable housing for our community.
Multiple layers of financing are needed to make affordable rental developments a reality. In most cases, affordable rental developments are created using the Low-Income Housing Tax Credit (LIHTC). LIHTC is a federal program that helps to make the numbers work when building or preserving affordable housing. The City provides millions of dollars each year in gap financing to support affordable rental development in Raleigh. As of January 2024, the City has committed over $14 million from the 2020 Affordable Housing Bond funding for Gap Financing, which will create 475 units. This year, the City has $24 million available for additional gap financing through our Joint Venture Rental Development Program.
Learn more about how we fund affordable rental development by watching the video below!
Funding Affordable Rental Projects
Want to learn more about what affordable housing is and how the City is tackling the affordable housing puzzle? View more videos and resources on the Affordable Housing 101 page.
