The City of Raleigh’s Community and Small Business Development Division of the Housing & Neighborhoods Department announces the availability of $2,000,000 in funding and building sites via long-term land leases to support the creation of affordable rental projects in which at least one third of the units are targeted to the AMI rent and income level.
Donor Name: City of Raleigh
State: North Carolina
City: Raleigh
Type of Grant: Grant
Deadline: 01/27/2023
Size of the Grant: $2,000,000
Details:
Missing-middle housing types such as duplexes and accessory dwelling units (ADUs) are encouraged and allowed by right on a majority of the lots by the underlying zoning. At least one-third of the housing units built must serve households at extremely low-income levels.
Eligible Projects
- Funds may be requested to acquire and preserve affordable rental units or to construct affordable rental units on City-owned lots via land lease. Not less than one-third of the total units must be reserved for, and affordable to, households with incomes at <30% AMI. The remainder of the units may have rents up to 80% AMI if the one-third at 30% AMI percentage is exceeded or 60% AMI if the 30% AMI percentage does not exceed one-third. Applicants are encouraged to exercise creativity in configuring unit mixes given the missing middle options now allowed by the UDO. As an example, a duplex unit at the 60% AMI rent and income limit coupled with an ADU at the 30% AMI rent and income limit would satisfy the income targeting requirement. The income/rent mix should be structured such that a 1.15 debt coverage/operating coverage ratio is maintained.
- If the Applicant is not requesting a City lot for the project, it must have site control of the proposed location (fee simple ownership or option to purchase) and the required zoning must be in place.
- Annual monitoring of tenant income certifications and rents will be required, and selected projects will be subject to deed restrictions requiring affordability for not less than 40 years. Tenant eligibility requirements will mirror those set forth in the Low-Income Housing Tax Credit program. Income and rent limits will follow the U.S. Department of Housing and Urban Development (HUD) HOME Program.
Criteria
Funds are available to non-profit developers or to partnerships between a mission-based non-profit and a for profit developer.
For more information, visit Small Scale Rental Development NOFA Grant.
