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DHA says Fayette Place will be funded with privately placed bonds and a $17M loan; community asks who gets contracts
Summary
Durham Housing Authority staff told council Phase 1 of Fayette Place will include 252 affordable units financed with $44M in privately placed bonds and a $17M loan; residents pressed the city on contractor diversity and called for clearer, written details before any approvals.
Durham Housing Authority and city staff briefed the council on the capital structure for Phase 1 of the Fayette Place redevelopment and answered residents who asked how benefits and contracts will be distributed.
The DHA representative who responded to council questions said the projects financing includes a $44,000,000 bond issuance that will be "privately placed with Citibank," and a $17,000,000 contribution that will be deployed into the project as a loan rather than an operational grant to DHA. "The bonds will be privately placed with Citibank. Citibank is providing that money for the construction," the DHA representative said.
Staff outlined the unit mix for Phase 1: 252 units total, with 30 units (about 12%) at 30% area median income (AMI) or lower; 78 units (about 31%) up to 50% AMI; 60 units (about 24%) up to 60% AMI; and 84 units (about 33%) between about 61% and 80% AMI. DHA clarified it will not own or operate the property in the same way as traditional public housing: ownership is expected to rest with Harmony Housing and Gilbane and a third-party management company would run day-to-day operations. DHA said DVI (Development Ventures Inc.) functions as the agencys development arm for tax-credit and similar transactions.
At the public-comment table, a resident asked the mayor and city manager: "How many African Americans are getting contracts with this job?" Speakers and council members repeatedly urged staff and DHA to provide explicit, written details about the capital stack, who will hold obligations, and what contracting and local-benefits plans will be before further action.
Council members asked for a follow-up presentation at committee or board meetings that would provide documented financing terms and clearer information about risk exposure. DHA staff said the citys direct liability for the $44 million bond issuance is nil, and that city risk primarily concerns the $17 million loaned funds in a default scenario.
