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Council refers $1.7M accessory dwelling unit pilot contracts to committee for more detail
Summary
Councilmembers voted to send construction contracts for a city‑owned‑land ADU pilot back to committee for more financial detail after questions about per‑unit costs and developer fees; staff said the pilot is part of the Nest Commission recommendations and is funded with ARPA dollars.
Charlotte City Council on Sept. 22 referred planned construction contracts worth $1.7 million for an accessory dwelling unit (ADU) pilot to the Housing, Safety and Neighborhoods committee for further review.
Rebecca Heffner, director of Housing and Neighborhood Services, told council the pilot would use three city‑owned infill parcels to build four affordable single‑family homes each with a detached ADU; the city would contract for construction and sell the completed units to House Charlotte‑eligible households (up to 80 percent of area median income). Heffner said the subsidy would remain in each property as a deed restriction for an affordability term and that the pilot is intended to demonstrate how ADUs can increase supply and provide rental income for low‑income homeowners.
Councilmembers pressed staff for more detailed cost information. Councilmember Dimple Ajmera asked for a line‑item breakdown — developer fee, materials and labor — and for comparables such as nonprofit builders (Habitat for Humanity). “When you look at the per‑unit cost, it's very high,” Ajmera said in the meeting, asking staff to return with a clearer justification and a comparison to other production models.
Councilmember LaJuana Mayfield expressed concern about the city funding full construction on city land and then providing additional assistance to buyers. Heffner responded that because the parcels are city‑owned and the project is a pilot, the model differs from typical developer‑led projects and that subsidy in the property is intended to preserve long‑term affordability.
After debate, council voted to send the contracts to committee for deeper review and to obtain a detailed per‑unit cost breakdown, developer fees, comparisons with other models and planned resale restrictions. Staff said the contracts are part of a previously approved $5.9 million allocation of ARPA funds for Nest Commission recommendations and that the construction item requires council action because it is a city procurement for construction.
The referral passed by council; staff will report back to the Housing, Safety and Neighborhoods committee with requested financial details and options for alternative delivery or nonprofit partnerships.
