City of Charlotte issued the following announcement on Nov. 25.
Most of Charlotte's low-income households do not have access to tenant-based housing vouchers that help them afford housing.
A new subsidy program approved by the Charlotte City Council on Nov. 8 aims to bridge the gap between what low-income households can afford and the fair-market rent of existing affordable housing.
Through the program, the city will work with developers of high-quality naturally occurring affordable housing (NOAH) properties — properties must be older than 15 years — to create long-term rental subsidies for households earning 30% or below the area median income. For a family of four, that is no more than $25,250 annually.
"We know that housing vouchers only go so far because there's a limited number of housing vouchers in our community," said the city's housing director Pamela Wideman on Nov. 1 when she briefed the City Council on the program. "This is a way to create another rental subsidy for those households."
For example, an eligible household earning $17,720 per year and looking for a two-bedroom apartment can afford $443 per month in rent. With the average two-bedroom in Charlotte going for $1,314 per month, the rental subsidy program could cover the $871 difference.
The city will commit funding through an annual property tax reimbursement to the property owner for the duration of a deed restriction, with a minimum of 20 years. The funding will not exceed the city's portion of the property tax bill. A third-party nonprofit will administer the funds, which will only be drawn as subsidies are needed.
To participate in the program, property owners must make:
- 80% of the units available to households earning 80% or below the area median income, and most units available to households at the 60% AMI level.
- 20% of the overall units available to households earning 30% or below the AMI and that use various subsidy sources, including vouchers and/or the proposed subsidy program.
- At least 10% of units available, through the NOAH rental subsidy program, to households earning 30% or below the AMI and that don't have access to vouchers.
The program emphasizes areas of the city at risk for increasing rents and the displacement of lower- and moderate-income residents. No residents will be displaced by the program; new residents who qualify will be housed as units come available through natural turnover.
Three NOAH Rental Subsidy Proposals
With the new subsidy program now approved, on Monday council members will consider funding rental subsidies for three naturally occurring affordable housing developments.
The city has previously invested in these three developments by Ascent Housing, Maple Way Apartments, Shamrock Gardens Apartments and Pines on Wendover Apartment Homes, through the Housing Trust Fund. If approved:
- Maple Way Apartments, built in 1973, would receive nine new subsidies (15% of the total units) for households at or below the 30% AMI level. The units would remain affordable for 20 years.
- Shamrock Gardens Apartments, built in 1964, would receive 40 new subsidies (15% of the total units) for households at or below the 30% AMI level. The units would remain affordable for 20 years.
- Pines on Wendover Apartment Homes, built in 1988, would receive six new subsidies (15% of the total units) for households at or below the 30% AMI level. The units would remain affordable for 20 years.
What is Naturally Occurring Affordable Housing (NOAH)?
Naturally occurring affordable housing is existing apartment complexes or single-family homes that are affordable because of age, geography or other circumstances.
Why Does Preserving NOAH Makes Sense?
This type of affordable housing is less disruptive to an area, and less expensive and faster to deliver than new construction. Residents get access to mixed-income, opportunity-rich neighborhoods, and Charlotte can mitigate the loss of affordable units and displacement.
How Does NOAH Preservation Work?
Properties are acquired and rehabilitated by housing developers and other private-sector entities, and rehabilitated to ensure good quality of life for existing and future residents.
Developers seek financial assistance from the City of Charlotte. With that financial assistance, the city and the developer agree to put in place affordability restrictions that limit rent growth and restrict units to residents earning specific income levels.
Existing residents can continue to rent so long as they choose. Income qualifications only apply to new residents who are phased in as units become available over time.
Original source can be found here.
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