Housing GSO: HRA Greensboro Affordable Housing Plan

AFFORDABLE RENTAL HOMES

SUBSIDIZE 4% DEVELOPMENT | Case Study

Charlotte’s success in leveraging dedicated local funding to sustainably increase its 4% LIHTC production offers a potential model for Greensboro. With additional dedicated local funding, as well as a formalized public- private funding pool to support 4% LIHTC development, Greensboro could significantly increase the supply of units affordable to its low-income earners. The City should engage potential partners and create a pool of funding to provide subsidy to support the feasibility of 4% LIHTC projects. While Greensboro’s size limits the availability and capacity of local private funders, the City may be able to garner interest from local philanthropies, banks, employers, and universities.

Charlotte Housing Opportunity Fund Charlotte, NC

In 2014, Charlotte voters approved $15 million in dedicated local funding for affordable housing. This influx of dedicated local funding has led to a significant increase in the production of awarded 4% LIHTC projects in the city. Between 2015 and 2016, awarded units increased by over 6x, and has remained over 4x higher every year since. Building off this success, the Charlotte Housing Opportunity Investment Fund* is a $100M private – public fund intended to formalize additional support for affordable housing. Managed by LISC, the fund will be made up of $50 million of private funding and $50 million of public funding. It is expected to finance up to 2,000 units of mixed-income multifamily units. $10 million in commitments from Foundation for the Carolinas and Wells Fargo seeded the fund.

Charlotte 4% LIHTC Awarded Units, 2012-2019

800

710

600

535

534

484

400

150

200

130

48

112

0

2012

2013

2014

2015

2016

2017

2018

2019

* See https://www.fftc.org/CHOIF; https://www.lisc.org/charlotte/our-work/

HR&A Advisors, Inc.

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