Morrisville council backs pilot rental‑assistance program, asks staff to adopt AMI-based eligibility

Morrisville Town Council on Jan. 27 heard a detailed staff presentation on a proposed rental‑assistance and security‑deposit pilot and gave staff guidance to favor HUD AMI thresholds over fixed income cutoffs.

Planner Josh Michael walked council through the program design the town is prepared to fund at $166,000 per year, split 50/50 between monthly rental subsidies and refundable security‑deposit assistance. The pilot, he said, would prioritize town staff, public servants and Wake County public‑school teachers serving Morrisville; participants must live in or move into the town. Michael said the town contracted with NeighborUp (formerly Dorcas Ministries) to administer intake, eligibility, payments and reporting.

Why it matters: Rents in Morrisville have risen sharply, staff said, with the median rent now roughly $1,800 and growth of about 70% since 2014. “Rental assistance helps align monthly housing costs with income and security deposit reduces those upfront barriers,” Michael said in the presentation. The pilot aims to serve roughly 5–12 households annually with rental subsidies and 40–50 households with deposit assistance, using projected subsidies of about $535–$1,160 per month and average deposit amounts in the $1,500–$1,800 range (staff cautioned these are consultant estimates and likely low for current Morrisville markets).

Key council questions and staff responses: Council members probed whether applicants could apply for both programs, whether existing Morrisville tenants with current leases could qualify, and how subsidies would be calculated. NeighborUp’s Andy Curry confirmed applicants could apply for both programs if eligible under the chosen thresholds, and staff said tenants with current leases could be eligible if they meet prioritization criteria. Michael reiterated that NeighborUp will pay landlords directly and will work with applicants to ensure the subsidy keeps housing costs at or below 30% of income.

On eligibility thresholds, staff recommended shifting from the program’s original fixed cutoffs ($50,000 for rental assistance and $70,000 for deposits) to AMI percentages—60% AMI for rental assistance and 80% AMI for deposit assistance—to align with HUD standards and allow for family‑size adjustments. “Using AMI would open the applicant pool and position the town to incorporate federal dollars in the future,” Michael said. Several council members signaled support for using AMI thresholds but asked staff to monitor initial application data and return with options if adjustments are needed.

Reporting and evaluation: NeighborUp will provide quarterly reports showing assistance amounts, anonymized demographic data, deposit recapture rates, and other monitoring metrics. Michael said the first full quarterly report may lag the program launch because participants need time to move under existing leases; staff expects more substantive program data by the second quarter after launch.

Budget and next steps: The pilot is funded from the town’s existing allocation at $166,000 per year, with roughly $74,700 available per program after an administrative fee. Council directed staff to proceed with the AMI recommendation and to return with final policy language and the quarterly reporting schedule; NeighborUp hopes to have applications open in late March with initial results visible by late June.