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Council approves transfer of city loans for two affordable apartment complexes
Summary
Council approved staff recommendation to transfer city loan obligations for two 50‑unit affordable properties (the Arbors and Milburnie Road Apartments) from Essential Housing back to Harmony Housing, with staff saying recorded land-use restriction agreements keep affordability covenants in place.
Raleigh City Council on March 17 approved a request to allow transfers of city loan obligations for two affordable rental properties — the Arbors and Milburnie Road Apartments — from Essential Housing back to Harmony Housing.
Erica Brandt of the city’s Housing & Community Development team outlined the loans’ histories: both properties were originally developed in the 1990s with city loans (for example, the Arbors received $500,000), later had loan documents modified, and had periods of affordability extended. Essential Housing asked to transfer the loans back to Harmony because the financing structure used by Essential — a shared credit facility connected to many properties — constrained the nonprofit’s balance‑sheet flexibility when other owners sold assets.
A representative for Essential Housing said the properties would remain affordable at the same rent levels and that the land‑use restriction agreements on title (30–50 years for the 31 properties noted) remain in force. Council asked how the city would ensure long‑term compliance; staff pointed to the recorded land‑use restrictions and said the covenants and restrictions are on title.
Council moved and approved the loan transfers. Staff said there were no required monthly payments on the current loans and that the maturity dates remain in the 2060s; affordability periods were left unchanged.
Source: Housing & Community Development presentation and Essential Housing representative statements, March 17, 2026.
