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City outlines steps to boost affordable housing: CDBG flexibility, revolving construction fund and housing‑authority powers discussed
Summary
Assistant City Manager Terrell Blackman recommended using CDBG flexibility under the new federal Housing for the 21st Century Act, a revolving construction fund from economic-impact dollars, and adopting housing‑authority powers to accelerate single‑family affordable production.
At Tuesday’s workshop, Assistant City Manager Terrell Blackman briefed council on the city’s housing strategies and potential policy tools to expand affordable housing production.
Blackman said the federal Housing for the 21st Century Act (recently passed by the U.S. House and awaiting Senate action at the time of the presentation) would allow the city’s Community Development Block Grant (CDBG) program to fund new construction, not just reconstruction on existing lots. “If we own the dirt, we can kind of control what we want to see in our community,” he said, describing the advantage of land acquisition for targeted affordable development.
Blackman reported the city currently has about eight lots suitable for single‑family developments and highlighted successful partnerships: 64 units are planned at The Commons, East Carolina Community Development’s 12 supportive units, and another private developer securing financing for 72 units. He proposed two near‑term tools: (1) use the city’s economic‑impact fund to seed a revolving construction fund (build one, sell, and re‑use proceeds) to increase annual production from about two homes to four or more; and (2) adopt a council resolution exercising housing‑authority powers under North Carolina General Statutes to negotiate sales and impose conditions (for example, a 20% set‑aside at 60% AMI in some transactions) where legal authority is required.
Blackman also presented income thresholds and affordability limits and noted gaps for households at very low incomes: for a four‑person household at 40% of area median income, the maximum home price that fits the HUD 30% affordability metric would be roughly $107,000 — a price range with virtually no current market stock in Jacksonville.
Why it matters: Blackman said increased local tools can accelerate production of affordable ownership units, stabilize legacy neighborhoods, and help the city meet FY27 housing priorities. He asked council to consider bringing a resolution on housing‑authority powers and additional budget allocations for housing tools.
What’s next: staff will include housing priorities in the FY27 budget and return with a resolution and budgeting options for council consideration.
