AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Funding Plan for the local affordable housing funding program.
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Sarah Osmer Viñas, Director, Affordable Housing & Community Connections (AHCC) Department
Emily Holt, Affordable Housing Manager, AHCC Department
Melissa Peters, Funding Programs Coordinator, AHCC Department
STAFF RECOMMENDATION*
Staff recommends that Council adopt the resolution approving the recommended funding plan for local affordable housing funding program.
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ACTION/DECISION POINTS*
Council may approve or reject the recommended funding plan for the local affordable housing funding program.
LEGISLATIVE CONTEXT*
Town Council approved the allocation of the value of a penny on the tax rate to affordable housing activities in the 2026 Town budget.
In January of 2025, Council established a unified local Affordable Housing Funding Program (AHFP). As outlined in the latest Affordable Housing Funding Allocation Strategy, Council must approve the allocation of local affordable housing funding over $100,000.
Chapel Hill voters approved a municipal bond referendum on November 5, 2024 that includes $15 million to support affordable housing projects. In June 2025, Council approved an ordinance that recognized the bond proceeds and appropriated $3.5 million for affordable housing partner projects.
BACKGROUND AND CONTEXT*
The Town released up to $4 million in local AHFP funding on June 26, 2025. This amount includes $3.5 million from the 2024 Affordable Housing bonds for affordable housing preservation and development, $219,674 from the remainder of the 2018 Affordable Housing bonds, and $280,326 from unallocated funds in the Affordable Housing Funding Program. Applications were due on July 31.
The Town received 4 applications totaling $5.3 million in funding requests. Town staff recommend fully funding 2 applications.
The recommended funding plan is based on staff review against a scoring rubric and reflects the funding priorities and requirements in the local affordable housing funding allocation strategy approved by Council. Additional details about the recommended funding plan and the applications received can be found in the attachments.
TRADEOFFS, ALTERNATIVES, IMPACTS
If Council approves the recommended funding plan, the plan will support the creation of 190 affordable units and the acquisition of four affordable units. Of the four funding applications, two projects are fully funded and two projects totaling $1,115,000 would not be funded at all. The unfunded projects received scores below the 70% threshold typically used for funding decisions.
FINANCIAL IMPACT
If Town Council approves the recommended funding plan, the cumulative balance of the AHFP would be about $250,000.
The balance of the 2024 Affordable Housing bonds will be $11.5 million.
Community Impact
The Town’s priorities for local affordable housing funding program focus on ensuring the Town’s limited dollars support high impact projects, especially those that support populations with high housing barriers or historically marginalized populations.
ATTACHMENTS
Resolution
Fiscal Year 2026 Recommended Funding Plan Overview for local Affordable Housing Funding Program
Draft Staff Presentation
A RESOLUTION TO APPROVE THE FUNDING PLAN USING AFFORDABLE HOUSING FUNDING PROGRAM AND BOND FUNDS (2025-09-10/R-4)
WHEREAS, in November 2018, a bond referendum for a $10 million affordable housing bond passed; and
WHEREAS, in November 2024, a bond referendum that included $15 million for affordable housing passed; and
WHEREAS, in January 2025, the Council approved the creation of a unified local affordable housing funding program; and
WHEREAS, in January 2025, the Council approved the results of the 2024 Bond Referendum, including the issuance of $15,000,000 Chapel Hill affordable housing bonds; and
WHEREAS, in June 2025, the Council approved an allocation of the value of a penny on the tax rate to the Affordable Housing Funding Program in the 2026 Town Budget; and
WHEREAS, in June 2025, the Council recognized the bond proceeds and appropriated $3.5 million for Affordable Housing partner projects.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves the following funding plan using Affordable Housing Funding Program and bond funds.
|
Organization |
Project |
Recommendation |
|
Taft-Mills Group |
Hillside Trace |
$ 4,000,000 |
|
HOPE NC |
Weavers Grove Acquisition |
$ 185,000 |
|
|
Total Recommendation |
$4,185,000 |
This the 10th day of September, 2025.
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