Council questions removal of deed restriction on 709 Dawson Street; staff says sale includes five‑year deed restriction

A pre-agenda meeting of the Wilmington City Council raised questions about consent item C11, which would authorize the city attorney to amend a deed at 709 Dawson Street to remove a use restriction requiring the property to be rented to low- and moderate-income residents.

A council member asked why the restriction, recorded in 2008 and referencing Chapter 157 of the General Statutes, was being removed and whether council had had prior contact with the buyer. The city attorney/staff replied that there had been contact with both the nonprofit that had acquired the property and the owner before the issue reached council and that staff had advised the buyer to present the request during public comment so council could decide whether to remove the restriction.

Housing staff (Rachel) told council the property sale would proceed through the city’s homeownership program and that staff would add a five‑year deed restriction as the program requires. “We will add additional 5 year deed restrictions on it,” Rachel said, describing the layered protections the homeownership program applies when converting a previously reserved rental to owner-occupied status.

Council discussion noted the parcel had been used as a reserved low- and moderate-income rental and that council should acknowledge the change because the item moved quickly from public comment to the consent agenda. Rachel said the sale was already in closing steps and that inspections and appraisals had progressed, which contributed to the timing.

No final action was recorded during the pre-agenda session; the deed amendment remained listed on the consent agenda for council consideration. The city attorney’s office and housing staff said they would provide any additional background materials council requested before the consent item is considered formally.