Tuesday, Feb. 6, City Council took another step towards creating the City’s first affordable “cottage court.” A cottage court community is a type of housing development that consists of small individual homes, typically around a shared greenspace. By authorizing an Option to Purchase, and approving a request for gap funding, Council paved the way for the development of The Cottages of Idlewild (project).
The proposed project will be developed by the Raleigh Area Land Trust, Inc. (RALT) and consist of 18 affordable housing units. These will serve residents with lower incomes, earning up to 30 percent to 80 percent of Area Median Income (AMI). That's 18 families and approximately 60 individuals up front, with a goal of serving more than 200 people over the next 30 years.
This Council action provides RALT with an opportunity to obtain site control of three City-owned parcels totaling 1.17 acres. The property is located at 301 Idlewild Avenue, 907 and 913 East Lane Street. Full conveyance to RALT will not occur until 1) all terms and conditions of the Option to Purchase have been satisfied, 2) City Council authorizes such conveyance and 3) all statutory requirements have been met. The gap funding is to offset increased development costs. RALT is also seeking $770,000 of additional gap funding from Wake County.
The project has been in motion since 2021, when RALT was awarded an opportunity to develop this site through a competitive Request for Proposals (RFP) process. Tuesday's action was an important step to keep the proposed project moving forward.
The scope of the project was also modified as follows:
- RALT’s original proposal included 17 units. The revised proposal calls for 18 units (4 rental units for residents at or below 30 percent, 60 percent, and 80 percent of the AMI, and 14 for-sale units for first time homebuyers with an AMI at or below 50 percent and 60 percent of the AMI). This represents a deeper level of affordability and provides opportunities for individuals and families with lower household incomes to secure housing.
- Down payment assistance for each for-sale unit is now proposed to go directly to first-time homebuyers who apply and are eligible through the City’s Homebuyer Assistance Program and not directly to RALT.
This project will be developed based on the Community Land Trust Model. Buyers purchase the home only and lease land at a nominal rate for a minimum of 99 years. This creates perpetual affordability of the land. Property taxes are only assessed on the value of the home, which means that tax bills are much lower than market-rate homes. Resale price of homes are restricted to ensure the home remains affordable to future generations. This creates opportunities for individuals and families to develop equity and generational wealth.
The City is eager to bring this much-needed affordable housing to our community. To learn more about how the City is tackling the affordable housing puzzle, visit our Affordable Housing 101 webpage. Stay in the loop on Raleigh Housing by signing up for email alerts under the topic “Community Development News.”
