Affordable Housing Development Fund

Notice of Funding Opportunity

The Affordable Housing Development Fund has announced a second phase of available funding.

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The Affordable Housing Development Program seeks to create new public housing in a way that is more responsive to the needs of hurricane-impacted communities. In some instances, it may be most beneficial to create traditional multi-family rental units. In other communities, clustered or site-by-site newly created small rental units may be the best options. The program will primarily consider new construction but may consider rehabilitation of existing units. 

As with use of Hurricane Matthew CDBG-DR funds, NCORR may fund projects that have been identified for funding through the Qualified Allocation Plan (QAP) process. In addition, NCORR may fund projects that are proposed in the MID areas of the state through this process. 

Separately, NCORR will solicit projects from qualified property management organizations, public, private, or non-profit organizations, and Community Development Housing Organizations/Community Based Development Organizations to determine the best fit for affordable housing that is responsive to the needs of impacted communities. Upon evaluation of proposals, NCORR may sub-grant funds using the SRA model or enter into a contract agreement to execute projects, based on the nature of the proposer and the proposal. The QAP process described above will not necessarily follow the selection criteria and prioritization criteria defined in the subsections below. 

Funding for the Affordable Housing Development Fund will be issued in multiple rounds:

Round 1: Through a partnership with the North Carolina Housing Finance Agency, NCORR is providing $40 million to assist in the funding of 11 tax credit projects that were selected through a modified Qualified Allocation Plan process. NCORR is working directly with the agency on compliance and oversight as necessary.

Round 2: The objective of Round 2 is to provide gap financing to projects that have received approval for their 4% tax credit applications to be used as long-term, affordable rental housing for LMI households. This is intended to allow realization of developments that have not filled the funding needs of their projects and to expedite the pace of qualified, new construction or rehabilitation projects that are otherwise shovel-ready. This round of funding encourages partnerships between Units of General Local Government (UGLGs) and developers that are building multi-family housing.

virtual technical assistance webinar for Round 2 grant applicants took place on Aug. 30, 2022. Please see the Resources section below to access the webinar recording and slide deck, as well as additional items to be included in the application packet. Round 2 grant applications were accepted through Sept. 16, 2022. 

Round 3: Planning for Round 3 funding is also underway for the Affordable Housing Development Fund. This is anticipated for release in mid-2023. To create maximum flexibility while supporting the NCORR mission and HUD compliance, the third round of funding will offer an adaptive model for allocations to support a variety of scenarios where CDBG-DR funding can be awarded to projects that result in the creation of long-term affordable homeownership and rental housing units to LMI households in North Carolina’s Most Impacted and Distressed Areas. More information about Round 3 will be available in 2023.