Commission approves extension for Drakes Creek cooperative conversion after residents ask to be grandfathered

The Housing Trust Fund Commission on Feb. 24 voted to extend the conversion deadline and contract term for the Drakes Creek limited-equity housing cooperative to June 30, 2027, after a half-hour of public comment from residents and nonprofit partners urging protections for longtime tenants.

"This request is about preserving existing community while implementing new policy," Claire Hennigan said, reading a statement from Melissa Roberts, co-chair of the Drakes Creek Cooperative council. Several other residents described daily life and stability at Drakes Creek and asked the commission to allow current residents to remain part of the cooperative even if their incomes are slightly above the program’s 50% area median income (AMI) eligibility threshold.

"For working families like mine, this is not simply a housing change. It is the possible loss of stability, relationship, and belonging," Medina, a Drakes Creek resident, told commissioners. Steven Watts of the Southeast Center for Cooperative Development said grandfathering existing residents is "considered best practice" and urged a one-year extension while staff pursues workable options.

Staff said the commission’s extension is intended to preserve housing stability while staff and legal counsel explore paths that comply with restrictions on American Rescue Plan Act (ARPA) funds used for the acquisition. "The money was spent for the acquisition," Director Hubbard told the commission, explaining that the ARPA-funded legislation limited participating households to 50% AMI and that changing that scope now could trigger noncompliance with U.S. Treasury rules and reporting deadlines. Hubbard said staff will continue to work with the community and look at options — including a mixed-income cooperative that could require partial repayment of ARPA money — while seeking to avoid displacement.

Commission members framed the extension as a temporary measure to allow further conversations. "Preservation of existing housing is equally important, and keeping people in their homes as building new," a commissioner said in support. Legal counsel and staff clarified that the ARPA obligation and expenditure deadlines constrain how the city can change the project’s income targeting.

The motion to approve the William Franklin Buchanan contract amendment to extend the Drakes Creek conversion milestone and the contract term to June 30, 2027 carried by voice vote. Staff said the extension is intended to "continue to have these conversations" and to protect current residents while exploring legally viable options.

Background: the Drakes Creek cooperative is part of a pilot set up with $7 million in ARPA funds to support shared-equity homeownership and other innovative housing pathways. Staff noted that ARPA reporting deadlines and the specific language of legislation authorizing that money limit changes to the project’s original scope. Director Hubbard said staff will return with lessons learned and potential policy changes for future acquisitions.

What’s next: staff will continue conversations with residents and community partners and report back to the commission; the extension keeps the conversion process active through June 2027 while those discussions continue.