Council discusses $1.5 million city match for Choice Neighborhoods grant to preserve affordable units

Council members discussed a $1.5 million Community Development Block Grant (CDBG) city match for a Choice Neighborhoods Initiative (CNI) application and asked how projects were vetted and how costs would be bridged if rehabilitation exceeded allocated amounts. Matt Walker, Housing and Neighborhood Services, said the $1.5 million city commitment was part of the joint Choice Neighborhoods application with the Durham Housing Authority and is the amount needed to maximize points in the application.

Walker said one of the projects funded in the application is a façade improvement and another is below the manager’s threshold; the DHA proposed the two rehabilitation projects in consultation with the city’s department. Interim CEO Snell of DHA described the overall preservation strategy: DHA would exercise options to buy out tax credit investors at the end of the LIHTC (Low Income Housing Tax Credit) compliance period, acquire full ownership, and apply operating revenues alongside grant funds to rehabilitate and preserve long‑term affordability. Snell said the effort is part of a larger strategy to preserve 226 affordable units that would otherwise exit LIHTC affordability controls.

Council members asked whether DHA would cover any gaps if rehabilitation costs exceeded budgets; Snell said operational revenues from the properties and other financing mechanisms would be applied to the work and that staff would follow up with more details on alternatives considered. A council member expressed appreciation for winning the competitive Choice Neighborhoods award and emphasized the importance of preserving the 118 Calvert Place and Main Street townhome units referenced in the application packet.

No final vote on funding allocations occurred during this meeting; staff agreed to provide additional vetting information on how the city match dollars were selected and how projects were prioritized.