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Durham council approves $44 million conduit financing for Fayette Place Phase 1 after resident questions on local contracting
Summary
Council unanimously approved a resolution authorizing a multifamily housing revenue note not to exceed $44,000,000 for Fayette Place Phase 1 (Villages at Hayti), after community members asked why a bond tranche lacked city UBE/workforce diversity requirements; housing staff and Durham Housing Authority representatives said the conduit bond tranche uses non‑city financing and that diversity goals will apply in later phases and other funding streams.
Durham City Council on Nov. 3 adopted a resolution approving conduit financing for a multifamily project now called Fayette Place Phase 1 (also referenced as the Villages at Hayti) and authorized a multifamily housing revenue note in an aggregate amount not to exceed $44,000,000. The motion passed unanimously.
Anita Scott Neville of the Hayti Reborn Community Advocacy Council asked the council to clarify why the agenda item did not require review by the city’s underutilized business enterprise (UBE) compliance unit or contractor workforce‑diversity reporting, given the project’s location in historic Hayti and community commitments in the RFP.
Matthew Walker of the Housing and Neighborhood Services Department told the council that the specific item before them was a conduit bond mechanism from the Durham Housing Authority (DHA) and that the tranche being approved on Nov. 3 does not flow through city funds; therefore, certain city contracting requirements tied to direct city funding were not applicable to that particular financing instrument. Walker said the larger redevelopment will include multiple funding sources and that UBE and workforce‑diversity goals will be applied where legally appropriate when the city’s funds or different financing tranches are involved.
Anthony Snell, interim CEO of the Durham Housing Authority, told the council DHA is committed to contractor diversity and its "shared prosperity" program and that the overall redevelopment will include monitoring and reporting to support minority‑firm participation. "We are committed to DHA's program for shared prosperity, and we meet the requirements of the city," Snell said, noting the $44 million conduit bond is one component of a larger, roughly $86–90 million project.
Council members asked staff to continue to be mindful of community concerns raised during outreach and to ensure that later phases and funding sources incorporate the inclusion goals communicated during the RFP and community engagement. The council was also told a separate item that will include direct city funding for the project is scheduled for a future meeting.
What’s next: The portion of the project financed by city funds will be presented on a future agenda, and staff and DHA representatives said they will continue to work to incorporate minority‑contracting and workforce development goals where those requirements apply.
Vote: Resolution approving Fayette Place Phase 1 financing — revenue note up to $44,000,000 (passed unanimously).
