Mooresville board adopts housing-authority powers and policy; town will not act as landlord

The Mooresville Board of Commissioners on March 17 adopted a resolution authorizing the town to exercise the complete powers, duties and responsibilities of a housing authority under state law and adopted an associated policy (BP-PCD-003) that limits how the town will use those powers.

Amber Goudreau, community development planner, presented the proposed policy and told commissioners the policy’s intent is to allow the town to use limited housing-authority powers for partnerships, property acquisition or rehabilitation while explicitly prohibiting the town from directly or indirectly engaging in residential property management or operating rental housing projects. “The town board has determined it is not currently in the best interest of the town to utilize the housing authority powers to directly or indirectly engage in residential property management,” Goudreau said.

Under the adopted policy, any use of the housing-authority powers must come to the town board for consideration. Goudreau said projects utilizing the authority would be required to include income restrictions targeting households at or below 80 percent of area median income, reversionary-interest provisions to ensure long-term affordability, and documentation showing any town subsidy flows to low-income households. The policy also states the town will not be required to exercise any or all of the authority and that adoption does not create a separate housing authority entity.

Commissioners discussed the policy’s purpose during the hearing. Commissioner Tommy DeWeese, who moved the resolution, said the approach is a way to support affordable housing development without the town becoming a landlord. Commissioner West praised the policy’s balance, saying it addresses workforce-housing concerns without creating a municipal landlord role.

A member of the public, Jack Benyon, asked how long developers are typically required to maintain affordable units; the mayor and staff replied that developer agreements commonly include 10- to 15-year affordability terms and that such terms are handled separately from the town’s housing-authority policy. Staff recommended adoption and the board voted to approve the resolution and policy.

Staff said the adoption is intended to enable future partnerships such as targeted rehabilitation or land conveyances to support affordable housing while preserving town oversight and limiting direct operation of rental housing.