Charlotte City Council approved $5,362,000 in Housing Development Funds to support 159 affordable housing units, 19 of which are homeownership opportunities, during its April 22 meeting.
Along with the Housing Development Fund allocations, the council approved more than $3 million in funding for an affordable housing project through its Transit Oriented Development Affordable Housing Development Bonus Program (TODAHD), the first use of the program in the city.
The $3,060,000 in funding will be allocated to Give Impact, LLC to support the purchase of nearly 1.8 acres of land for an affordable housing development located at 140 Dorton Street, near the intersection of Sugar Creek Road and North Tryon Street.
The TODAHD program allows developers to increase building heights along transit corridors (Blue Line, Gold Line, CATS Bus stops) if they agree to provide affordable housing onsite or pay a fee-in-lieu. Monday’s approval marks the first time money collected through fee-in-lieu funds has been allocated toward affordable housing in Charlotte.
Most cities offer developers alternative ways to satisfy their affordable housing requirements, with the most common alternative being a fee-in-lieu program that allows developers to pay a certain amount toward the future development of affordable housing units rather than include them in their development.
According to a presentation by the City Manager’s Office during Charlotte City Council’s April 8 action review meeting, there had been $4.7 million in TODHAD fees paid and allocated at that point, with $16 million more committed to and approved by the city.
Give Impact, LLC, the firm awarded the $3 million allocation at Monday’s meeting, expects to build between 200-225 affordable units on the 1.8-acre Dorton Street site, though further details are yet to be determined. Once the purchase, predevelopment and design processes are carried out, the plan will come back in front of council for approval.
As for the other affordable housing developments approved on Monday, the 159 unis are spread across four developments.
Mallard at Sugar Creek, located at 6150 Mallard Creek Road in north Charlotte’s Detira neighborhood, was allocated $2,640,000. The development will include 15 units reserved for those making 30% or less of the area median income (AMI), nine units for those making 50% AMI and below, and 36 units for those at 70% AMI and below, for a total of 60 affordable units.
NHE, Inc. is spearheading that project, which will remain affordable for 75 years.
Learn more: Nooze Hounds: Affordable Housing and Homelessness in Charlotte
Grounds for Change, located at 3420 Park Road on YWCA property in south Charlotte, has been allocated $2 million for a total of 80 units — 17 at 30% AMI or less and 63 units at 60% AMI or less. DreamKey Partners will lead this development, which will remain affordable for 70 years.
The development is part of a partnership between YWCA and DreamKey Partners that formed in 2019. City Council previously invested $4.5 million into the project in November 2022.
Legacy Vista is a homeownership development opportunity off of Toddville Road in northwest Charlotte. The project was allocated $456,000 for the construction of 12 affordable townhomes, three for residents earning 50% AMI or less, five at 60% AMI or less, and four at 80% AMI or less. Habitat for Humanity will develop the community, which will also include two units listed at market rate.
Little’s Landing, the other homeownership opportunity, also developed by Habitat for Humanity, will be located on Polk and White Road in northeast Charlotte’s Mallard Creek area, with a $266,000 allocation going toward the construction of seven for-sale townhomes. Two of these units are reserved for residents making 50% or less AMI, with three at 60% or less AMI, and two at 80% or less AMI. One unit will be sold at market rate.
According to the press release, the homes in both Legacy Vista and Little’s Landing can only be resold to an income-eligible buyer at or below 80% AMI for the first 15 years. Habitat for Humanity holds a right of first refusal for 45 years on both locations, at which time the resale restriction period resets. The homes on both locations may not be rented out.
The awards to Mallard at Sugar Creek and Grounds for Change are dependent on developers receiving a Low-Income Tax Credit award from the North Carolina Housing Finance Agency.
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