Town of Chapel Hill header
File #: [23-0820]    Version: 1 Name:
Type: Discussion Item Status: Passed
File created: 8/16/2023 In control: Town Council
On agenda: 11/29/2023 Final action: 11/29/2023
Title: Consider Approving the Proposed Affordable Housing Loan Fund (AHLF).
Attachments: 1. AHLF - HAB Rec to Council Nov 2023, 2. Council Questions with Staff Response, 3. Staff Presentation, 4. A RESOLUTION APPROVING TOWN FUNDING FOR THE AFFORDABLE HOUSING LOAN FUND (2023-11-29/R-7)



title
Consider Approving the Proposed Affordable Housing Loan Fund (AHLF).
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Staff:
Department:
Sarah O. Vi?as, Director
Affordable Housing and Community Connections
Emily Holt, Affordable Housing Manager


Overview: Staff has made progress in developing an Affordable Housing Loan Fund (AHLF) and recommends that the Town make a funding contribution to support the establishment of the AHLF.


Recommendation(s):
That the Council receive the update and consider approval of the funding recommendation for the Affordable Housing Loan Fund.

Overview of the Affordable Housing Loan Fund
UNC Health Founding Funding Commitment
* In June 2023 Town Council approved a conditional rezoning to allow UNC Health to develop a new Medical Office Campus at Eastowne.
* As part of that rezoning, UNC Health committed to a $5 million contribution for the acquisition, preservation, and creation of affordable housing in Chapel Hill as a 20-year, 0% interest loan.
* As conveyed to Council during the Eastowne discussions, the loan will provide seed funding for a larger Affordable Housing Loan Fund to support affordable housing in Chapel Hill. The Fund will be created at the direction of the Town and will be administered by a third-party Fund Administrator selected by the Town.

Progress to Date on Creating the AHLF
* Staff released a Request for Proposals in September and received one response from Self Help Ventures Fund.
* Staff is negotiating an agreement with Self-Help to administer the AHLF. Self-Help is a leading national Community Development Financial Institute (CDFI) with extensive lending and underwriting experience as well as affordable housing development experience in NC and the Triangle area. Self-Help is currently the fund administrator for three other affordable housing loan funds in the Triangle area (Wake County, Durham and Greensboro).
* Staff identified Town resources to complement UNC Health's founding contribution, as outlined below.
* Staff provided...

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