The City Council on Tuesday gave conditional approval to $2.8 million in gap financing for three affordable housing projects that are seeking federal tax credits.
If developers are awarded the tax credits, the city would help fund the projects that would add 152 family units and 88 elderly units to the city’s stock of affordable rental housing.
The city seeks projects that are eligible for the credits once each year through its Joint Venture Program.
The projects, still in the development phase, are slated for Leland Drive in Northeast Raleigh, on Common Oaks Drive near Wakefield and on Rock Quarry Road in Southeast Raleigh. Rents would range from a low of $310 for a one-bedroom apartment to $860 for a three-bedroom one.
Without the city financing, the projects wouldn’t be competitive for the tax credits, which will fund most of each project, said city staff. The low-interest loans from the city would provide between six and nine percent of the total funding for each project.
The projects would benefit 240 individuals or families earning less than 60 percent of the area median income, about $47,000 annually for a family of four.
Councilman John Odom cast the lone vote against the proposal because he doesn’t want affordable housing projects to be clustered together. The Wakefield project would be near another affordable housing site.
“I’m concerned that if we don’t have a scattered-site policy plan, they’ll all be right next to one another,” Odom said.