February 22, 2019
On January 18, DHIC submitted preliminary tax credit applications to the North Carolina Housing Finance Agency (NCHFA) to support financing for the following projects:
Booker Park South at Washington Terrace, Raleigh
Booker Park South would be the third phase of the Washington Terrace redevelopment plan and would consist of 68 one- and two-bedroom apartments for seniors 55 and older. We applied for City of Raleigh financing for this project as well.
Pennington Grove II, Garner
This development would be the second phase of Pennington Grove and would consist of 69 one- and two-bedroom apartment homes for seniors 55 and older. The first phase of the community leased up quickly and maintains a lengthy waiting list. Our hope is to be able to expand through this second phase to fill the need of affordable housing for seniors in the area. The architecture for this proposed second phase will be similar to the first, resulting in a consistent appearance for both phases of the community. We also applied for local financing from Wake County for this project.
The Town of Apex has expressed an interested in expanding housing options for its residents and those who work in Apex but live elsewhere. To help them achieve this, we’re developing plans for a two-phase approach: phase I for families and phase II for seniors. Phase I will consist of 72 one-, two-, and three-bedroom apartments, with development commencing in 2020. Phase II will consist of approximately 72 to 80 one- and two-bedroom apartments for seniors, with development commencing in 2021. Additionally, we applied for local financing from Wake County for this development.
The Low-Income Housing Tax Credit was created under the Tax Reform Act of 1986, in an effort to increase the development of affordable housing across the country. If we are awarded the tax credits, we’ll use them to help raise equity capital from investors for the projects we’re developing.
The NCHFA received over 150 applications this cycle from around the state. About 40 of those applicants will receive a tax credit award. Awards are expected to be announced in August.
We’ll make sure to keep you up to date as we get more information!