Wake County has been able to significantly increase unit production for low-income earners by altering the evaluation criteria for its Affordable Development Loan Program. Similarly to Wake County’s approach, Greensboro should amend its RFP criteria to preference developments offering lower thresholds of affordability beyond what is required by NCHFA. Adopting a similar baseline and tiered approach to awarding funding should have a tangible impact in the production of units affordable to extremely- low-income renters. The City could also offer additional subsidy for 9% LIHTC projects located in areas of opportunity where there is currently a lack of affordable housing and land prices are higher. Locating affordable housing in areas of opportunity with high-quality schools, low crime, and access to open space and other amenities is one of the most effective ways to impact children’s future success. However, with higher land costs, developers need additional subsidy to make affordable development feasible. The Appendix provides an overview and methodology for identifying areas of opportunity in Greensboro.
Affordable Development Loan Program (ADLP) Modifications Wake County, NC
Establishing these preferences has significantly deepened the affordability in multifamily projects the County supports. For the 2019 funding cycle, over a third of total units in supported projects were affordable at or below 50% AMI, which represents an additional 175 units above NCHFA baseline requirements. The County also created 105 permanent supportive housing units above baseline NCHFA requirements based on its updated criteria.
Beginning in the 2017-2018 application cycle, Wake County altered the criteria for its Affordable Development Loan Program (ADLP) to establish a requirement of additional units affordable at lower-income levels, as well as additional supportive units. For 9% LIHTC projects, the County established a preference for projects offering a portion of total units to individuals or households earning at or below 40% AMI, as well as projects that include units set aside to serve special needs populations.
Wake County offers additional subsidy to units that target deeper affordability according to the following guidelines:
• Up to $30,000 per unit for 50% AMI units • Up to $50,000 per unit for 40% AMI units • Up to $80,000 per unit for 30% AMI units