Message From Natalie: An Update on Our Portfolio Rehab Project

As we move through the second half of the year, our organization has some exciting things on the horizon. Most notably, we’re getting closer to the start of our seven-property rehab project, which we hope will begin by the end of Q1 in 2024. These updates have been in the works for several years, and this summer, we secured the main financing vehicle for the project in the amount of approximately $21,000,000 in 4% tax credits. 

The next step is to develop the full construction drawings and begin working with our selected tax credit equity investor and first mortgage lender. There’s been a lot of work done by our team, particularly Project Manager Joseph Omozokpea. It’s exciting to see it starting to come to fruition and the timing couldn’t be better.

The loss of “naturally occurring affordable housing (NOAH)” has increased dramatically over the past several years. Older properties are being torn down or sold with subsequent minor improvements, name changes and rent increases. Tax-credit properties are lost after investors exit and new general partners come in who are not committed to long-term affordability. To help account for this, it’s more important than ever for DHIC to re-invest in our communities so they stay updated while keeping them as affordable as possible. 

We’ll be making improvements throughout seven of DHIC’s Wake County family properties, focusing on interior updates like replacing cabinet and countertops, installing new flooring, replacing lighting and plumbing fixtures, replacing appliances, and upgrading HVAC equipment, etc. We’ll also be making exterior improvements to roofing, siding, windows, doors and landscaping. This includes energy-efficiency upgrades, aimed to help residents lower their energy costs. 

Another one of our goals in this rehab project is to make improvements to increase accessibility for residents with mobility limitations and other impairments, both inside individual units as well as in the communities with more accessible parking options, ramp entrances, access to amenities, and pedestrian routes. 

Of course, our residents are always at the top of our minds as we move forward with these upgrades. We have relocation consultants available to help manage the residents’ needs and minimize disruptions once construction begins and they bear with the temporary inconveniences.

We look forward to hearing their feedback as progress continues on this rehabilitation project and we’ll continue to provide updates in future newsletters once construction officially begins.