What is an Affordable Housing Bond? Current Bond Past Bonds
What is an Affordable Housing Bond?
An affordable housing bond is a tool used by municipalities to raise capital to create and preserve affordable housing opportunities.
- Proceeds generated from a bond can be loaned to nonprofit and for-profit real estate developers, who will use the money to create and preserve affordable housing opportunities for citizens with limited incomes and limited housing options.
- Affordable Housing bonds are managed at the local level but must be approved by voters as a ballot initiative.
- Affordable Housing bonds that are approved by voters may increase local real estate property taxes for residents
City Council directed the housing staff to look at two affordable housing bond options for the November 2020 ballot. The City formed an Affordable Housing Bond Advisory Committee on January 21, 2020 to identify options and gather public input for a Fall 2020 bond referendum.
Raleigh residents gave overwhelming support, with 72 percent of those voting in favor of the bond.
- Provide generally equal geographic distribution with project investments
- Provide a range of housing types and income levels in coordination with Wake County
- Include new units and rehabilitated units where financially viable
- Seek innovative development partnerships
- Seek projects and acquisition opportunities near planned transit routes like Bus Rapid Transit (BRT)
Affordable Housing Bond 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 during the City Council Work Session on May 18. Click here to view the May 18, 2021 presentation.
In the past the City asked voters to support housing that is affordable through bonds. In response, voters approved bond referendums in 2000, 2005, and 2011.
The City has used past bond money to support homebuyer assistance, construction and preservation of affordable rental units, neighborhood revitalization and owner-occupied home rehabilitation.