Durham presents Forever Home Durham update: bond dollars, units created and program gaps

Durham staff updated the City Council on Forever Home Durham, the city's affordable‑housing investment program created following a 2019 voter‑approved bond package, saying the city has exceeded several of its original targets while facing challenges in homeownership and MWBE contracting.

"When this investment program was first envisioned, the idea was to implement services and programs over a 5 year period," Assistant City Manager Carmisha Wallace told council as she reviewed the bond's original goals and the different funding sources now supporting the work. The bond was originally described to voters as a $95 million affordable housing investment; staff said they have since layered additional resources, including community development block grants, HOME funds and a dedicated housing fund.

Wallace walked through five goal areas: creating and preserving 2,400 affordable rental units; moving 1,700 unhoused people into permanent housing; providing 400 homeownership opportunities; stabilizing 3,000 low‑income households; and creating $130 million in MWBE contracting opportunities. Staff reported they have "exceeded our goal in the area of affordable rental units" and exceeded the goal for stabilizing households and moving people into permanent housing, noting the second goal was exceeded by 334 individuals and families.

On homeownership, staff said market changes forced program adjustments and administrative changes. The city increased its down‑payment assistance subsidy from an earlier figure to a maximum of $80,000 to reflect current housing prices, and launched a program in which first lenders intake applications before city review. Housing staff said the first city loan closed in March 2024; six loans closed in FY 2023–24, 18 in FY 2024–25 and 12 in FY 2025–26 to date, for a total of 36 closed loans and one approved pending closing.

"The first loan was closed in March '24," the housing staff reported when council asked for the timeline of approvals and closings.

Staff described eviction diversion and stabilization work funded largely through the dedicated housing fund and federal CARES Act emergency rental assistance (two tranches) that together exceeded $10 million and reported an allocated stabilization amount of roughly $5 million for services such as eviction diversion and legal assistance; the current active contract for eviction diversion runs through June 30, 2026.

On MWBE contracting, staff and council acknowledged a shortfall versus the $130 million aspirational target. "We have met about half," staff said, and committed to deeper engagement with United Minority Contractors and other partners to build capacity and pipeline for minority‑ and women‑owned businesses on development projects.

Council members pressed for more detail on program outcomes, benchmarking and customer experience — for example, how many applicants apply versus how many loans close and whether the city has surveyed participants to improve the down‑payment assistance process. Housing staff said a new program administrator will contact borrowers and lenders to collect feedback and that the city is pursuing further RFPs and preservation pilots for naturally occurring affordable housing. Wallace said staff will return with more detailed financials and a closeout-style report to explain what has been achieved and what remains in the pipeline.

The presentation prompted council questions about timing, communication, and whether the city should ask voters for additional bond funding in the future; staff said some projects remain in the pipeline and full completion cannot yet be declared.