Raleigh has $17 million available for rental development but received $55.5 million in requests, leaving 1,335 units unfunded

City of Raleigh housing staff told the council the city has about $17 million available for rental development gap financing but received roughly $55.5 million in requests for fiscal year 2025, leaving a large unfunded pipeline.

Sadia Sitar, Budget and Management Services, relayed the housing briefing and introduced Emily Sutton, director of Housing and Neighborhoods, who explained the competitive scoring process. “These are competitive application process. So these are the 11 that did not score high enough to achieve the funding,” Sutton said. She said 17 total projects applied, six were funded and those six led to funding for 670 units; the 11 unfunded projects account for about 1,335 units.

Council members asked whether applicants could return in future rounds. Sutton said projects sometimes do come back but “we don't know that for sure.” Council member Harrison and others pressed staff on how close available funding could get to the requested total; staff noted the two clear options to expand gap financing are a property‑tax increase or borrowing through bonds.

No council action was taken at the session. Council asked staff to post the housing allocation detail in the manager’s update and to return with any additional analysis that might show multi‑year or bond financing options for the unfunded projects.