Additional subsidy will be needed to offset the higher land costs in areas of highest opportunity. Recent 9% LIHTC new construction projects are beginning to locate in mid-tier opportunity areas along the city’s edges, which is a promising development. However, land costs in areas of opportunity are on average more than six times higher on a per acre basis than in areas of Greensboro in which subsidized housing has historically been built. Acquiring a 3.5- acre site, the typical size for a 9% LIHTC new construction project, in an area of opportunity could require an average of $2.5 million in additional subsidy. Greensboro should explore publicly owned sites in and near areas of high opportunity to identify appropriate parcels for developers to target future affordable development. The City can also consider offering additional subsidy to developers interested in developing affordable units in these areas.
9% New Construction LIHTC Award (Since 2015)
Top Quartile Opportunity Tract
Vacant Land, Zoned Multifamily Publicly-Owned Land
Source: City of Greensboro, HUD, Opportunity Atlas, Real Capital Analytics, NCHFA, City of Greensboro, HR&A Analysis