Charlotte Housing Authority gets grant to build senior housing

CHARLOTTE -The Charlotte Housing Authority has received funding and tax credits that will allow it to build 92 one-bedroom units.

The authority, through its affiliate Horizon Development Properties, has been given $8.8 million in federal tax credits from the U.S. Department of Housing and Urban Development over the next ten years by the North Carolina Housing Finance Agency, a self-supporting public agency created by the General Assembly, and $1.38 million in funding from the City of Charlotte Housing Trust Fund.

The award will be used for the development of apartments for low-income elderly residents with an income at or below 60 percent of the area median income, or $30,840 for a couple and $27,000 for a single person. It will be built at the corner of Park and Marsh Roads in south Charlotte.

“It’s going to be an absolutely beautiful facility,” said Fulton Meachem, CEO of the Charlotte Housing Authority. “It puts seniors in an amenity-rich community close to transportation and shopping which will reduce their overall expenses.”

The complex, which will be at 3126 Park Road, is already zoned multifamily. The plan calls for building the apartments in mid-rise four-story buildings with elevators. The development will have many sidewalks to ensure walkability.

Meachem said the authority plans to break ground in early spring 2015 with an anticipated completion date in 2016. Starting next week, the agency will begin soliciting bids from contractors. Interested parties can get additional information at the housing authority’s website through the procurement page.

The need for workforce housing in the city is great. Meachem said his organization serves 22,000 Charlotteans including 2,000 elderly and has 6,000 people on waiting lists.

“There is no question there is more need for additional workforce housing,” he said pointing to city study showing 15,000 residents in need of affordable rents with an anticipated doubling in that population by 2050. “There is a true need for housing in general, but particularly for homes renting for $600 or less.”

Horizon Development Properties was created in 2001 as a nonprofit corporation with the goal of developing high-quality, mixed-income housing.

The Charlotte grant is part of a larger effort by the state to build $423 million in affordable apartments in 37 North Carolina counties. Officials with the N.C. Housing Finance Agency predict that the funding will create 3,683 privately owned and managed affordable apartments statewide and that 72 percent, or 2,650 units, will house families while 1,033 would be dedicated to elderly residents. Additionally, 295 apartments would be for people with disabilities.

“These affordable apartment developments will provide housing opportunities for working families and seniors,” said Bob Kucab, executive director at the finance agency. “They will also help to improve communities; keep thousands of North Carolinians working in construction and related industries, and build local tax bases.”

The finance agency believes the work will support 8,450 jobs statewide and generate more than $13.4 million in local tax revenue.

The tax credits and bond authority were approved by the North Carolina Federal Tax Reform Allocation Committee, based on recommendations from the finance agency, which evaluates applications in what it calls a highly competitive process. As part of the vetting process, applications are ranked based on a number of factors including architectural design, affordability, financial stability and ability of the development team. Agency staff members also evaluate projects with independent market studies and onsite visits.

Apart from the federal tax credits, five of the apartment developments will receive loans totaling $4.5 million. Thirty-nine of the developments have been issued state tax credits approved by the General Assembly to produce affordable apartments in rural counties where incomes are low, and reduce heavy rent burdens in urban areas.

In order to qualify for an affordable unit, households must meet qualifying income standards of no more than 60 percent of the county’s median income. In Wake County, a family of four with an income of $45,480 or less would qualify. In a rural county such as Robeson or Wilkes, the income threshold could not exceed $19,760.