Council approves $1 million HOME bridge loan for Albemarle Landing Apartments after debate over income targeting
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Summary
Council approved a $1 million HOME Program post‑construction bridge loan to Albemarle Landing Limited Partnership in order to extend affordability and leverage HUD financing; two council members voted no citing concern that the development will not include 30% AMI units.
The Charlotte City Council approved a $1,000,000 allocation from the U.S. HOME Investment Partnerships Program as a post‑construction bridge loan to Albemarle Landing Limited Partnership, an affiliate of South Creek Development LLC, aimed at stabilizing the Albemarle Landing Apartments and extending the property’s affordability commitments.
Rebecca Heffner of Housing and Neighborhood Services told the council the loan is federal HOME funds intended as a bridge to help the developer reach stabilization; the loan will be repaid over seven years at 3 percent interest and the developer agreed to extend the affordability period by an additional 10 years. "This is a pilot ... to test out a post construction bridge loan," Heffner said.
Council Member Renee Johnson — who identified herself as an affordable‑housing advocate — said she would not support the item because the development does not include units reserved at 30 percent of area median income (AMI). "I won't be supporting this...our most vulnerable population is not being served," Johnson said. Council Member Margie Molina said the property is an existing, income‑restricted development and described this action as a post‑construction mechanism that recycles HOME funds back into the city’s housing program.
The developer has agreed to set aside 19 units for vulnerable populations and to the 10‑year extension of the property’s affordability period. City staff described the relevant rents and clarified that voucher holders may access units as vacancies occur and through rental subsidy rules.
Motion and outcome Council approved the HOME allocation; their record shows at least two members — Council Members Brown and Johnson — opposed. The manager was authorized to negotiate and execute the necessary contract documents and the loan will be repaid to the city's HOME fund for future reuse.
Why it matters City staff said the bridge loan is designed to leverage additional low‑interest financing from HUD and to recycle program income back into the local HOME fund for future affordable housing projects. Opponents argued the action should prioritize deeper affordability (30% AMI) or target households with the lowest incomes.
What’s next Staff will finalize loan documents and monitor repayment; council members asked staff to provide additional detail about unit set‑asides and vacancy policy for voucher holders.
