Raleigh and Wake County to spend millions more to cover rising affordable housing costs
Raleigh and Wake County will spend millions more to make sure planned affordable housing developments in the city get built.
The Raleigh City Council and the Wake County Board of Commissioners agreed Tuesday to spend an additional $2.3 million each to build the 156-unit Preserve at Gresham Lake apartment complex in northeast Raleigh.
The City Council had already approved $3.3 million for the project in May 2022 for a total cost of $5.6 million. Wake County voted to spend $2.8 million in December 2021.
“Since that time, rising construction costs and interest rates have led to a funding gap,” Erika Brandt, the city’s housing programs administrator, told the council at its meeting. “Construction costs have risen from about $185,000 per unit to $234,000 per unit which is a 25% increase.”
The development group, LDG Development, has increased its own bond allocation and had requested more money from Wake County to help cover the increased cost. This will be the Kentucky-based company’s first development in North Carolina, according to its website.
The apartments will be located at 3095 Gresham Lake Road, near the city’s Durant Nature Preserve. The apartments will be income-restricted, with a family of four having to make under $85,600 per year, and 32 units will be reserved for people who need supportive services.
The remaining cost of the development includes about $20 million from the bank and nearly $15 million in federal tax credits.
The Wake County commissioners also voted to spend an additional $1.3 million for the Rock Quarry Landing affordable housing development. The county previously voted to spend $1.8 million in April 2020.
The 188-unit will be located at the intersection of Rock Quarry Road and Sunnybrook Road in southeast Raleigh, and is also income-restricted. The city of Raleigh is not contributing money to this development because it doesn’t conform to the city’s location policy for affordable housing, which sets conditions for where such housing should go.
This story was originally published January 3, 2023 at 6:10 PM with the headline "Raleigh and Wake County to spend millions more to cover rising affordable housing costs."
