Affordable Housing Development Fund
Announcement: Affordable Housing Development Fund - Round 2 Awards
The NC Office of Recovery and Resiliency has awarded $22.3 million from the Affordable Housing Development Fund to three state municipalities for new multifamily housing projects.
The Affordable Housing Development Fund (AHDF) 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 multifamily rental units. In other communities, clustered or site-by-site newly created small rental units may be the best options. The AHDF program will primarily consider new construction but may consider rehabilitation of existing units.
Supported by the North Carolina’s HUD Community Development Block Grant–Disaster Recovery funds for Hurricanes Matthew and Florence, 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 "most impacted and distressed" (MID) areas of the state through this process.
Separately, NCORR will solicit projects from qualified property management organizations, public, private, or nonprofit 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. Planning for Round 3 is currently underway for an anticipated release in mid-2023.
Through a partnership with the North Carolina Housing Finance Agency (NCHFA), the first round of the Affordable Housing Development Fund Program provided $40 million to assist in the funding of 11 tax credit projects that were selected through a modified Qualified Allocation Plan (QAP) process. NCORR is working directly with the agency on compliance and oversight as necessary. The NCHFA received funding for the following projects:
- Garnet Place in Shallotte, NC, awarded $2.5 million (72 units)
- Love Mill Apartments in Whiteville, NC, awarded $2.9 million (60 units)
- Palatine Meadows in New Bern, NC, awarded $3.8 million (60 units)
- Cliffdale Crossing in Fayetteville, NC, awarded $2.5 million (80 units)
- Cliffmore Park Apartments in Fayetteville, NC, awarded $5.3 million (72 units)
- East Haven Apartments in Rocky Mount, NC, awarded $2.5 million (64 units)
- Five Points Crossing in Rocky Mount, NC, awarded $4.9 million (50 units)
- Crestfield Point Apartments in Jacksonville, NC, awarded $4.3 million (72 units)
- Estrella Landing Apartments in Wilmington, NC, awarded $5.3 million (84 units)
- Residence at Canopy Pointe in Wilmington, NC, awarded $2.5 million (72 units)
- Northeast Pointe II in Lumberton, NC, awarded $3.5 million (72 units)
The second round of Affordable Housing Development Fund funding awarded $22.3 million in gap financing to local governments that received approval for their 4% tax credit applications for projects to be used as long-term, affordable rental housing for LMI households. The funds will be used to realize developments that did not meet their funding needs and to expedite the pace of qualified, new construction or rehabilitation projects that are otherwise shovel-ready.
- City of Wilmington, awarded $9 million to develop Starway Village Apartments (278 units)
- City of Greenville, awarded $5 million to develop Arlington Trace (180 units)
- Morehead City, awarded $8.3 million to develop Elijah’s Landing (168 units)
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 MID areas. More information about Round 3 will be available in 2023.