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Council work session recommends $50,000 local pledge to support East Haven Apartments phase 2 application
Summary
City staff recommended using $50,000 of state-awarded housing funds to strengthen an application for a 54-unit second phase at East Haven Apartments; councilors voted to forward the recommendation to the April 14 council meeting.
City staff recommended that the city allocate $50,000 from recently awarded state housing funds to help the developers of East Haven Apartments secure Low-Income Housing Tax Credits for a proposed 54-unit second phase.
The recommendation, made during the Rocky Mount City Council’s Committee of the Whole work session on March 24, would direct $50,000 of the city’s $4,000,000 in state housing awards into the developers’ application to the North Carolina Housing Finance Agency. City staff described the requested local contribution as a 30-year, 0% interest loan that would strengthen the developer’s application and help leverage roughly $14 million in private and tax-credit-financed investment in the Phase 2 project.
The East Haven complex opened last summer as a 64-unit development. The developers told staff they expect construction on Phase 2 to begin in summer 2026 and that the city’s local contribution would need to be committed before June 30, 2026.
At the work session, a council member asked about the total development cost; staff confirmed the Phase 2 budget is approximately $14,000,000 and that the city would be asked to contribute $50,000 of the city’s awarded funds. After discussion, council members voted by voice to forward the recommendation to the full council; the item will appear on the April 14 council meeting agenda for a public hearing and final action.
No formal loan documents or repayment schedule beyond the 30-year, 0% description were presented at the work session. Staff and the developers indicated more detailed terms would be included in the application and in subsequent council agenda materials.
If the council approves the recommendation at its April meeting and the developer is successful with the North Carolina Housing Finance Agency application, the Phase 2 financing would be structured as part of the tax-credit transaction and the city’s $50,000 would be committed as described by staff at the work session.
Votes at the work session were voice votes; no roll-call tally was recorded on the record during the Committee of the Whole presentation.
