NEW HANOVER COUNTY — Four affordable housing projects in New Hanover County will receive funding that will benefit nearly 300 residents.
READ MORE: ‘Need is immediate’: Gap in housing stock grows, NHC plans year 2 of affordable housing fund
For the second year as part of the Workforce Housing Services Program, county commissioners are allocating $3 million toward efforts that impact low-income households. The board approved $2.9 million in grant money to be doled out to Blue Ridge Atlantic Development, Cape Fear Habitat for Humanity, New Beginning Christian Church and Wilmington Area Rebuilding Ministry NC.
While last year’s $3 million was allocated as two low-interest loans for all-new builds, this year’s funds are being given out as grants. About half are going toward increasing housing stock, with the rest funding a mix of rentals and home building purchases.
$1.6 million will go to constructing 107 new units, with $872,000 spent to rehab 40 owner-occupied units, with the remainder to supplement rental payments for 127 households.
In February 2022, commissioners signed off on committing money to support affordable housing after deciding against a $50-million bond package. The bond tested poorly through a survey conducted by UNC Greensboro and the Wilmington Chamber of Commerce, due to the tax increase associated with it.
Instead, commissioners voted unanimously to go with a five-year plan to invest $15 million into workforce housing needs. The goal was to support affordable housing in a variety of ways, from increasing unit availability, preserving current housing, and increasing residential access to homes through infrastructure improvements or rental and mortgage assistance, for example.
The criteria and priorities created for this year’s funding cycle were based on the county’s updated housing assessment, which reports an estimated 16,875 for-sale-unit gap and 12,147 for-rent-unit gap over the next decade.
All funded projects are expected to stay affordable for at least 15 years; additional consideration was given to those that exceeded as much. Also, the rent or mortgage for units must target households with an area median income of 60% to 120%; bonus points were given to residential units that accept housing choice vouchers.
As a result, the chosen projects must be shovel-ready, and either increase the supply of affordable housing or preserve existing stock.
Housing program manager Theo McClammy said additional requirements included financial feasibility of completed work, if the site was ready for development, and making sure the recipient of the funds had experience with affordable housing, with capacity to manage the project.
The four organizations were chosen out of seven submitted proposals, due to the county Aug. 4. In total, the county received $6.6 million in funding requests, which would have led the way for 547 units, according to McClammy. However, some organizations did not meet the criteria, such as not having a site location or not submitting a clear business plan that ensures longevity of affordability.
The commissioners unanimously voted to approve the money, though commissioner Jonathan Barfield was hesitant at first.
“I will support the list here but I was concerned about Canopy Pointe for a number of reasons,” he said.
Blue Ridge Atlantic Development broke ground last November on the $13.1 million Residence at Canopy Pointe off Middle Sound Loop Road — a 72-unit senior affordable housing complex compliant with Low-Income Housing Tax Credit requirements.
The $600,000 allocated from the county will be used to replace depleted contingency funds after the developer had to correct unsuitable soil conditions. The county’s money will ensure the facility is more durable and resilient, according to McClammy.
Barfield said he wasn’t comfortable with funding Canopy Pointe, since Blue Ridge Atlantic chose to pursue voluntary annexation with the city due to gap financing it had available. Blue Ridge received $1.85 million from the city in June 2022; the funds are considered a low-interest loan, to assist with the development of affordable housing.
“They came before our board to get rezoned,” he said. “[S]taff put in a lot of effort and resources going through the process with the planning board and planning staff to waste our time to go to the city because they had a pot of money. My feeling is they truly should go to the city for resources, not the county.”
Barfield noted annexations within the middle of the unincorporated county create “bubbles” in the community that can challenge fire and police coverage, as well as other government services.
His second concern was with rental price points; he was unsure if units would be “affordable.”
Barfield explained to PCD on a call Monday he had not yet seen what the rent structure would be and was basing his assumptions off geographic location.
“Being a realtor for 26 years, knowing where [the units] are located and what came before us leads me to believe they may be affordable to some but not for all,” he said, adding the Middle Sound Loop area typically sees a more expensive price point for homes.
Port City Daily reported in May 2022 monthly rent will range from $367 to $1,050 for a mix of one- and two-bedroom apartments; PCD reached out to the developer to confirm whether the pricing has changed but did not receive a response by press.
In July, Wilmington Housing Authority approved issuing $3.8 million in project-based vouchers to subsidize 18 of the units at Canopy Pointe. The vouchers stay attached to the unit for 15 years and are different from housing choice vouchers, which are given to a tenant to choose a residence, typically within 60 days.
With this new round of funding, the complex should be ready to accept tenants by March 2024.
CATCH UP: More affordable housing on way, WHA boosts senior development project
Cape Fear Habitat for Humanity is going to get $1 million for Haven Place, to support the construction of 35 single-family homes on nearly 14 acres at 3101 Castle Hayne Road. The money will pay for water and sewer infrastructure and allow affordable homeownership opportunities for low- to moderate-income families
Habitat director Lauren McKenzie told PCD in July the organization has seen a 30% increase in homeowner applications in the last year.
“For me, the purchase option allows folks to establish generational wealth, an accumulation of increased property value to pass down to families,” Barfield said at Monday’s meeting.
Commissioner chair Bill Rivenbark agreed but had concerns about the home if the owner decided to sell. He wanted to ensure any single-family homes that are built retain affordability.
“I want everyone to own a house but not get in on something and sell it and make money and make it no longer affordable,” he said.
Senior long-range planner Rachel LaCoe explained Habitat’s model provides the organization the first right of refusal if an owner goes to sell the home, to make sure it stays in the affordable system. The provision is listed in the deed restrictions on the property.
Should all move forward as planned, Haven Place construction, costing up to $9.7 million, should begin March 2024.
New Beginning Christian Church requested $500,000 to expand its existing Healthy Opportunities Pilot Program, an initiative to evaluate non-medical interventions, such as housing, to improve health outcomes. The church is a participant of the state-run program and provides rental assistance to families to prevent displacement.
With the half-a-million dollars, New Beginning can serve up to 127 households with supportive services, such as personal case management, budget training and independent living skills, that create better outcomes of housing stability.
New Beginning Church received a $1.5-million loan from the county during last year’s affordable funding cycle for a 68-unit senior development on Alex Trask Drive in Castle Hayne.
WARM NC — an area nonprofit restoring homes in disrepair or damaged by weather — is using its $872,000 to upfit 40 existing units over the next two years. The homes are occupied by individuals earning 50% AMI or less, many are seniors or those with disabilities, director JC Lyle told PCD. WARM’s ultimate goal is retaining the workforce housing stock and improving conditions of structures for low-income homeowners.
The county money will go toward flooring, plumbing, appliance replacement, stairs, roofs, HVAC, and ADA accessibility for owner-occupied homes.
WARM applied for $500,000 last year to make urgent repairs on 60 homes, but the county’s review committee needed more information about the period of affordability to consider funding.
Commissioner Rob Zapple said allowing money to be used to keep people in their existing homes is important.
“This is exactly what the money is designed to do,” he said.
Three other projects submitted for funding but not approved included a $673,900 ask from Cape Fear Collective to repair 75 existing units scattered around the county; LMN Advisors’ request for $1.5 million to finance the construction of 150 to 200 affordable single-family or multifamily units with a site not identified; and Wilmington Realtors Foundation inquiring for $1.5 million and coverage of of infrastructure needs on the 3-acre parcel. It wanted to build 48 new units at Pierson Pointe on Carolina Beach Road. Staff could not verify the household incomes and long-term viability of Cape Fear Collective’s project and a county site was not identified for LMN Advisors’.
Wilmington Realtors Foundation’s plan was still in the design and fundraising stage. County staff intends to continue to work with the agency to be considered for future cycles of funding.
Cape Fear Collective and Wilmington Realtors Foundation were both turned down after submitting proposals for last year’s funding as well.
Commissioner vice chair LeAnn Pierce noted the reason Wilmington Realtors Foundation could not get its project off the ground was a lack of infrastructure.
“Do we have any plans to extend water and sewer down Carolina Beach Road, to connect CFPUA into that area?” she asked staff.
Planning director Rebekah Roth said at this time, it does not; however, the realtors foundation has applied for additional grant funding to cover infrastructure costs and the county can partner with them in the future, once its determined if additional funding will be granted.
Commissioner Dane Scalise noted the “potential” that is available in the realtors’ proposal.
“I hope we can continue to work alongside them to get them to a position to make a recommendation for them in the future,” he said.
Agencies receiving funding will be held to state audit protocols and an agreement with the county to ensure the money is spent as intended, and the projects come to fruition in a timely manner.
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