Duke Energy and Raleigh Nonprofit DHIC Announce Agreement that Ensures Housing Affordability for the Prairie Building Apartments until 2050
February 10, 2021
DHIC, Inc. is pleased to announce an agreement with Duke Energy to preserve affordable housing in the historic Prairie Building in downtown Raleigh.
The Prairie Building is an 11-unit apartment complex in downtown Raleigh, which also leases first floor office space to DHIC, Inc. Originally placed in service in 2000, the property provides affordable housing to residents with incomes below 60% of the area median income. The building was developed as affordable housing under the Low-Income Housing Tax Credit and Historic Tax Credit Programs with an affiliate of Duke Energy as the tax credit investor.
As with all tax credit properties, there is a land use restriction that requires the owner to restrict the property to low income occupancy for 30 years or 2030, in the case of Prairie Building’s apartments. However, in return for exiting the ownership structure, Duke Energy asked DHIC to extend the affordability restriction for an additional 20 years. All of the apartments in the building on S. Wilmington Street will now remain affordable for low-income renters until 2050.
DHIC President, Yolanda Winstead, explains, “As housing costs continue to rise, this agreement is an example of both DHIC’s and Duke Energy’s commitment to ensuring that rental housing options in downtown Raleigh will continue to include affordable housing for essential workers for years to come. The Prairie Building apartments is one example of the kind of housing that could be developed with funding soon to be available from the $80M City of Raleigh Affordable Housing Bond approved by voters in November 2020.”
The Prairie Building features eight one-bedroom and three two-bedroom units on the second and third floors with high ceilings and hardwood floors. Other features include secure entrances, intercom system, elevator access, energy-efficient heating and air conditioning, ample storage space, full kitchen, cable TV hook-ups, and on-site laundry facilities. The property is 100% occupied and maintains a waiting list.