The owners of the Townhouse Apartments near downtown have modified their redevelopment plans ahead of Monday’s Town Council review to include affordable housing.
The council approved a redevelopment plan for the Martin Luther King Jr. Boulevard complex in 2009. The then-named Residences at Grove Park was expected to replace 111 apartments with 346 for-sale condominiums, plus 520 parking spaces, on roughly 13 acres.
That project failed to get off the ground before the construction deadline expired in January. The property owner and Phil Post, with engineering firm Philip Post and Associates, have filed a new application for a modified student apartment project.
The newly named Grove Park has the same number of apartments but adds 65 beds, for a total of 850. Several 39- to 90-foot-tall buildings would replace those built in 1962. The plan would meet Jordan Lake and town stormwater requirements created since 2009 and also reduce impervious surfaces, such as parking spaces, and the effect on environmentally sensitive conservation district land.
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The Town Council is scheduled to hear the plan Monday.
A revised plan submitted earlier this year eliminated an agreement to provide 26 affordable, for-sale condos and a $1.1 million payment to the town’s affordable housing fund. The town’s inclusionary zoning rules don’t apply to apartments, but the property owner had offered to pay the town $175,000 instead.
The owners revised their plan again in the last two months to add 50 affordable apartments, Post said, in addition to the $175,000 payment.
The new plan would let the town or its representative lease the affordable apartments for 99 years and sublease them to tenants at certain income limits, he said. Attorney Wayne Hadler and Patty Segar, of Townhouse Apartments LLC, presented the plan this week to the town’s Housing Advisory Board.
The affordable, one-bedroom apartments would rent at a percentage of the U.S. Department of Housing and Urban Development’s fair market rate for a person earning 60 percent to 80 percent of Chapel Hill’s area median income, or $67,400. The rent would include utilities.
Five apartments would rent at 60 percent of AMI, or $737 a month for a single person earning roughly $28,000 a year. Another 10 apartments would rent at 70 percent of HUD’s fair market rate, or $830 a month for someone earning about $33,000 a year, while 35 apartments would rent at 80 percent of the fair market rate, or $949 a month for someone earning at least $37,000 a year.
The annual leases would run from Aug. 1 to July 31, Post said.
The town likely would rent the affordable apartments to non-student tenants, he said. The complex has been home to a mix of student and non-student residents over the years because of its long history and location, he said.
The Town Council will hold a public hearing at 7 p.m. Monday in the Town Hall Council Chamber, 405 Martin Luther King Jr. Blvd.