What’s in new Charlotte City Council’s first affordable housing vote?

Charlotte Journalism Collaborative

2 years ago

The Charlotte City Council stands after swearing in at the Charlotte-Mecklenburg Government Center in Charlotte, N.C., Tuesday, Sept. 6, 2022. Alex Slitz alslitz@charlotteobserver.com

by Will Wright, The Charlotte Observer

In its first vote as a new City Council, members voted unanimously Monday to help fund the purchase and renovation of an apartment complex for affordable housing.

The vote authorized the city to give $8 million to Central NOAH LLC to buy and renovate Peppertree Apartments on Central Avenue and provide rental subsidies for 20 years to the occupants of 44 rental apartments. The total costs for buying and rehabbing the buildings exceed $55 million, and the complex has a total of 292 units.

Several council members lauded the project as a potential example of how to leverage city dollars to preserve “naturally occurring affordable housing.” Council member and Mayor Pro Tem Braxton Winston said the method was one tool in the city’s strategy, likening it to a Swiss army knife.

Council member LaWana Slack-Mayfield pointed to the project’s potential cost versus the return on investment. The subsidies in the agreement will annually be as much as the property’s tax rate. In 2022, the city’s property tax bill is $90,244.

“Let’s just think about that dollar amount,” she said.

WHAT’S THE IMPACT?

In exchange for the subsidies, a 20-year deed restriction will hold 88 units for people making 30% or below the area median income (currently $28,250 for a family of four); 146 units for people making 31% to 60% AMI; and 58 units for those at 61% to 80% AMI.
Of the 88 units for people making 30% or lower AMI, half will be reserved for people who do not have existing housing vouchers or other forms of rental assistance. To pay new vouchers, the city will pay up to the amount of the current year’s property taxes.

WHERE’S THE MONEY COMING FROM?

The $8 million comes from money Charlotte received through the American Rescue Plan Act of 2021.
For the subsidies, the city will use the property tax paid for the site, Mayfield said. The amount the city uses for subsidies will not exceed the amount of property tax.

WHAT’S NEXT?

The Mecklenburg Board of County Commissioners will consider providing $4 million for buying and renovating the building on Sept. 20. They’ll also consider a subsidy agreement that mirrors the city’s, using county property tax dollars.
The city’s subsidy agreement is contingent on what the county decides.

Read more at The Charlotte Observer