Council backs $2.88M in contingent loans for 84‑unit Central Park Villas affordable housing project

Fayetteville — The City Council unanimously authorized a contingent loan commitment on Nov. 24 totaling $2,883,811 to support Central Park Villas, an 84‑unit affordable rental development proposed by JBS Development on a 6.23‑acre portion of the city’s catalyst (cat) site.

Economic and community development staff said the total project cost is roughly $22.8 million. The request to council was for a combination of a $1,000,000 HOME loan at 1% interest and $1,883,811 from the city's housing opportunity general obligation bond at 2% interest, both with 40‑year terms; loan repayment would come from the developer’s residual receipts as required by North Carolina Housing Finance Agency rules.

Councilors asked about site constraints, floodplain exposure and whether the project advances ownership goals tied to prior neighborhood revitalization plans. Staff said the developer will conduct required HUD environmental reviews, elevate buildings above flood levels where necessary and that the city remains focused on parallel homeownership initiatives (including a 'home heroes' program) even while supporting rental stock. The developer submitted an option to purchase the city‑owned parcel; appraisal information in the packet showed a purchase valuation around $545,000 pending final appraisal review.

Council Member Davis, whose district includes the site, moved to authorize the contingent loan commitment; the motion passed unanimously. Staff will draft loan documents and execute them at loan closing contingent on NCHFA award, HUD environmental approval and a finalized purchase agreement.

Next steps: Staff to draft loan documents with outside housing counsel, complete environmental review, and close loans contingent on NCHFA financing and other conditions.