AFFORDABLE HOUSING SERVICES
In response to growing demand, communities across North Carolina are increasingly focused on ensuring that residents have access to quality and affordable housing. According to data from the U.S. Department of Housing and Urban Development (HUD), roughly 30% of North Carolina households either struggle to afford their homes or are living in substandard and/or overcrowded housing. The rate of households experiencing housing problems doubles to over 60% for low-income households.
But the housing needs across jurisdictions are as diverse and complicated as the potential solutions. DFI helps local governments understand their specific housing needs along the housing spectrum and navigate the development tools available to them. Like other real estate projects, developing and preserving affordable and quality housing is often a complex process involving a private developer, the local government, architects, investors, planning officials, the public, and other stakeholders.
DFI is available to assist communities at all stages, from municipalities wanting to better understand the problem to those prepared to implement a strategy but not sure how to proceed.
Visit the School of Government’s Community & Economic Development (CED) blog to learn about a range of topics related to affordable housing including primers on the low-income housing tax credit (LIHTC), and updates on special funding sources such as the American Rescue Plan or CDBG for Disaster Recovery
AFFORDABLE HOUSING WORKSHOP
A DFI-led workshop on affordable housing educates local elected officials and staff on what “affordable housing” means and how local governments can play a role in preservation or development. DFI introduces key concepts and dives into development finance tools such as the Low-Income Housing Tax Credit (LIHTC). We will work with each local government to tailor the workshop to its needs.
HOUSING NEEDS ASSESSMENT
The DFI housing needs assessment provides a comprehensive overview of local housing markets, focusing particularly on the needs of extremely low- to moderate-income households. The assessment will help communities understand how broader demographic trends such as population growth or economic changes impact local housing markets and identify the type and scale of housing required to meet its residents’ needs.
THIRD PARTY REVIEW
If a local government receives a proposal from a private developer for an affordable housing opportunity, DFI can conduct a Third-Party Review. DFI will provide an independent assessment of the feasibility of the deal, the public participation requested, and recommend alternative structures, if needed. Dependent on the client’s timeline, the process may include a high-level market analysis, development of a financial pro forma, and evaluation of the proposed site plans and structure of the proposed public participation.
Dare County engaged UNC DFI to identify opportunities for new development of affordable housing for low- and moderate-income households. Dare County is located in a Difficult Development Area (DDA) and the DFI housing assessment identified the specific challenges of maintaining an affordable housing supply in a tourism community. DFI identified several sites competitive for 9% LIHTC and is currently evaluating the potential for the conversion of a hotel to affordable apartments. DFI will conduct a pre-development process on select properties and help the County identify a development partner.