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Charlotte council approves $75 million affordable housing bond and directs federal, ARPA funds to regional projects
Summary
The council adopted a $75 million general obligation bond for affordable housing and approved federal and ARPA allocations to support three housing projects including $600,000 in HOME funds for Oak Hill Apartments and $2.6 million in ERA2 funds to acquire New Wesley Apartments.
Charlotte City Council on Aug. 25 approved a package of housing finance actions that city staff said will support preservation and development of affordable housing across the Charlotte region.
The council voted to adopt a bond order authorizing up to $75,000,000 in general obligation bonds for affordable housing. Council members also approved a federal HOME Investment Partnerships Program (HOME) allocation of up to $600,000 to Community Housing Partners for development of the Family Residences at Oak Hill Apartments and an American Rescue Plan Act (ARPA) Emergency Rental Assistance 2 (ERA2) allocation of $2,600,000 to Dream Key Partners, Inc. for acquisition of New Wesley Apartments.
The $75 million bond is intended to fund city-backed affordable housing projects identified by staff. City staff advised the council that the HOME funds are federal dollars the city administers as lead agency for the Mecklenburg County HOME consortium; the Oak Hill project is located in Davidson and the city’s HOME allocation is contingent on the developer securing remaining financing. The Dream Key acquisition will keep existing residents in place at 60% area median income (AMI), staff said, and was described by supporters as a preservation, rather than displacement, intervention.
Supporters on the council emphasized the regional nature of Charlotte-area housing needs. Council Member Victoria Watlington (council member at large) and others said regional cooperation is routine for the HOME program because the city administers consortium funds that serve municipalities across Mecklenburg County. Council Member Renee Johnson (District 4) and Council Member Tijuana Brown (District 3) said they were concerned about projects located outside the city limits; Johnson said she would not support the Davidson HOME allocation because the development is outside Charlotte city limits.
The HOME allocation vote was recorded as six in favor and two opposed; council members did not read a roll-call list on the record in the public portion of the meeting. Other housing items passed without recorded opposition.
City staff said the city will not disburse HOME funds to Oak Hill until the developer secures full project financing and that if other funding partners decline to participate, the city allocation will be returned to the available HOME balance. The Dream Key ERA2 award will be used to acquire the property and preserve deeply affordable units, staff said.
The council’s action follows earlier staff briefings on regional housing demand and the mechanics of HOME funding. Staff said they will provide implementing contracts and bring any required loan documents back to the manager or council as appropriate.
Council members requested follow-up briefings and additional details on project timelines and preservation covenants.
Votes at a glance: affordable housing bond order (up to $75,000,000) — adopted; HOME allocation to Community Housing Partners (up to $600,000) — adopted (6 yes, 2 no); ARPA/ERA2 allocation to Dream Key Partners, Inc. ($2,600,000) — adopted.
