HomeMy WebLinkAboutWHAC- 2023 Annual Report
2023 Annual Housing Report
SECU Lakeside Reserve
Habitat for Humanity Starway Villages
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I am proud to be in my second term as
Chair and wish to express my gratitude
for the hard work of my fellow
committee members.
Since its formation in 2019, the
Workforce Housing Advisory Committee
has worked to increase the supply and
equitable access to housing that is
affordable to the workforce of our
community.
We are pleased to present the 2023
Annual Housing Report, which includes our
newly adopted Housing Strategic Plan. This plan will guide the work
and recommendations of the committee as we continue to strive to
ensure that all City and County residents have a safe, affordable place
to call home.
Affordable housing options help everyone. Greater tax generation,
creation of jobs, opportunities for economic development, increased job
retention and productivity, and the ability to address inequality all are
among the economic benefits of increased access to quality, affordable
housing. Multiple reports show a harmful link between high housing costs
and difficulties with employee recruitment, productivity, and retention,
which hurts businesses and a community’s economy.
Adequate housing is often cited as an important social determinant of
health and wellbeing. It is important to note, affordable housing
interventions that address lack of housing and poor quality housing
improve health outcomes and decrease health care costs.
We have included quotes in the report to highlight the impact
affordable housing has made for our neighbors. I hope you enjoy
celebrating the many accomplishments presented in the annual report,
as we continue to work towards housing solutions to this ever-growing
community issue.
Sharm Brantley is the CEO of Level Up Strategies. She serves on the boards of
local nonprofits and has been a member of the Workforce Housing Advisory
Committee since its formation in 2019.
Workforce Housing Advisory Committee
Committee Members
Sharm Brantley, Chair
Tom Gale, Vice-Chair
Sarah Arthur
Liz Carbone
Melanie James
Michelle Jarman
Kristen Keser
Eric Knight
Katrina Knight
Katrina Redmon
R. Frank Smith, Jr.
Paul Stavovy
Rev. Edwrin Sutton
Workforce Housing Advisory Committee Strategic Plan 3
Community Profile 4
New Hanover County Housing Updates 6
City of Wilmington Community Development & Housing Updates 9
2023 Committee Recommendations 12
Definitions 15
Table of Contents
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The Workforce Housing Advisory Committee was established by the New Hanover County Board of Commissioners
and Wilmington City Council in 2019. The 13-member Workforce Housing Advisory Committee is comprised of
professionals representing the following communities: At-Large, Business/Education, REALTORS®, Development,
Financial, Non-Profit housing, and the Chair of the Joint Community Relations Advisory Committee.
The committee was organized for the purpose of developing a comprehensive workforce housing study, workforce
housing opinion study and public awareness campaign, support for increasing equitable access, and the supply of
workforce housing that is affordable; informing the Appointing Authorities and other organizations of their
findings; and making recommendations, in an advisory capacity, to the Appointing Authorities and other
organizations, as necessary.
Strategic Plan
Housing affordability is important for the people who live and work in our county and city. Based on the results of
the Joint County/City Comprehensive Housing Study and Survey, the Workforce Housing Advisory Committee has
developed a strategic plan to help guide New Hanover County and the City of Wilmington's efforts in addressing
the housing affordability needs of all residents.
Staff from New Hanover County’s Office of Strategy and Planning Department, along with staff from the City of
Wilmington’s Community Development Division, worked with the committee to develop objectives, outcomes, and
measures that will help guide future recommendations. The plan was officially adopted by the committee in
December 2022.
*For the purposes of this committee, Workforce Housing is defined as housing that is affordable to households earning up to 120 percent of Area Median Income (AMI).
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Community Profile
Workforce Housing is a term that has become increasingly used in affordable housing conversations and can be
defined in a variety of ways. For the purpose of the committee, Workforce Housing is defined as housing (to
own or rent) that is affordable to households earning up to 120 percent of Area Median Income (AMI). This
includes, but is not limited to, police officers, firefighters, teachers, health care workers, retail and restaurant
staff, senior citizens, and people with other sources of incomes.
According to the U.S. Department of Housing and Urban Development (HUD) households should spend no more
than 30% of gross income on housing and utilities, with households that spend more than 30% being considered
cost-burdened. Households that spend 50% or more on housing costs are considered severely cost-burdened.
The local economy suffers when good quality housing near jobs and services is not available in a wide range of
prices. Many households in our community have occupations critical to a successful economy; however, people in
these professions have difficulties competing in the current housing market.
Graphics from North Carolina Housing Coalition County Profile - nchousing.org
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$385,406
Median Sales Price
Cape Fear Realtors
February 2023
+15.4%
1-Yr Price Increase
Cape Fear Realtors
February 2023
$1,596
Median Rent
Redfin
January 2023
+11.8%
1-Yr Price Increase
Apartments.com
2023
Homeowner Affordability
In New Hanover County, 63% of households identify as homeowners. Of that, 23.9% (17,614 households) are
cost-burdened with 10% (7,370 households) considered severely cost-burdened. Within the City of
Wilmington, the numbers are similar to the overall county with 23.7% households being cost-burdened and
9.8% being severely cost-burdened. (2020 ACS5 year estimate)
Renter Affordability
According to the 2021 American Community Survey (ACS) 1-Year estimate, the median income of renters in
New Hanover County is $41,969, $24,128 below the Area Median Income (AMI).
In New Hanover County, 37% of the households identify as renters. Of those, 49.1% or 21,252 households are
cost-burdened and 26.5% or 11,470 households, are severely cost-burdened. Within the city limits the
numbers are 50.4% cost-burdened, and 26.5% severely cost-burdened.
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Workforce Housing Services Program
The Planning & Land Use Department developed a framework of criteria and priorities for funding a Workforce
Housing Services Program utilizing the $3 million allocated for affordable housing in the FY 23 budget. The
criteria and priorities included in the Request for Proposals were developed based on the findings of the Joint
County/City Comprehensive Housing Study and Survey to create an immediate impact for New Hanover County
residents.
The framework was designed to address the community’s housing needs by increasing the supply of residential
units, retaining our existing affordable housing stock, and increasing residents’ access to those homes.
In FY 23, Commissioners approved the use of $3 million to help fund a pair of projects that will bring 152 new
workforce housing units to the community. East Carolina Community Development and Terroir Development each
received $1.5 million in loans to support their Low-Income Housing Tax Credit (LIHTC) developments, helping
keep these units affordable for at least 30 years.
Proposals were evaluated based on their cost, total units created or rehabilitated, and ability to make an
immediate impact. Funding recommendations came from a cross‐functional team of New Hanover County staff
and select members of the Workforce Housing Advisory Committee.
New Hanover County Housing Updates
In February 2022, the New Hanover County Board of Commissioners voted unanimously to dedicate at least
$15 million of general revenue over five years for programs and initiatives that increase and improve the stock
of affordable homes in New Hanover County and increase residents’ access to affordable housing
opportunities.
Housing Team
In order to increase the capacity of staff, a new Housing Programming Division was added to the Planning &
Land Use Department. This division is tasked with developing, implementing, and managing the programs and
initiatives to increase and retain affordable housing stock while helping the county’s workforce by alleviating
issues of housing insecurity. A team of three program staff, in addition to the Housing Planner who is part of the
Long Range Planning team, bring significant experience and achievements in creating public/private
partnerships, grants management, and acquiring new housing funds.
Unified Development Ordinance (UDO)
Based on recommendations by the Workforce Housing Advisory Committee, the county’s Unified Development
Ordinance received several housing-related updates in the past year.
• Updated and modernized the definition of a “Family” to be more inclusive
• Increased the maximum residents of Group Homes from six to eight persons
• Allowed additional height allowances in residential and mixed use developments to support accessible
housing
• Allowed Accessory Dwelling Units (ADUs) by right in almost all residential zoning districts, creating a
wider range of housing options within the community, enabling seniors to stay near family as they age,
and facilitating better use of the existing housing fabric in established neighborhoods.
Spotlight on ADUs
Accessory Dwelling Units (ADUs) have become increasingly popular
throughout the country as a tool to provide affordable, flexible housing
options without the need for significant infrastructure or further land
development. As housing needs change over time, an ADU’s use can be
adapted for different household types, income levels, employment
situations and stages of life.
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FY 23 Funding Commitments
Activity Name Activity Type Activity Goal Commitment
Type
Dollar
Amount
Committed
Housing
Type
Covenant Senior Housing
(East Carolina Community
Development, Inc.)
New Construction
Affordable Rental
Development
68 New Rental
Units Loan $1,500,000 Senior
Estrella Landing
(Terroir Development)
New Construction
Affordable Rental
Development
84 New Rental
Units Loan $1,500,000 Family
Total Project Costs $33,622,860
Total County Funds Committed $3,000,000
Estrella Landing
Terroir Development, LLC (TD) was awarded a $1.5 million loan for the construction of Estrella Landing, an 84-
unit affordable housing development on Gordon Road.
All units will be rented to households earning at or below 80%
AMI and will accept Housing Choice Vouchers. Estrella Landing
will provide 21 units at the 30% AMI level and 63 units at the
60% AMI level. All units will be maintained as affordable under
the LIHTC program guidelines for 30 years.
The subsidy per household is $17,857 and $1.5 million is 8% of
the total project cost of $18,233,226.
Construction is estimated to be complete by December 2024.
Covenant Senior Housing
East Carolina Community Development, Inc. (ECCDI) was awarded a $1.5
million loan for the construction of 68 units of affordable senior housing in
Castle Hayne in conjunction with New Beginning Christian Church.
All units will be rented to households earning at or below 60% of the Area
Median Income (AMI), with 17 units at the 30% AMI level, 11 units at the
50% AMI level, and 40 units at the 60% AMI level and will accept Housing
Choice Vouchers. All units will be maintained as affordable under the LIHTC
program guidelines for 30 years.
The subsidy per household is $22,058 and $1.5 million is 9.7% of the total
project cost of $15,389,634.
Construction is estimated to be complete by June 2024.
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American Rescue Plan
In addition to the general funding, the county received $45.5 million in American Rescue Plan funding. An initial
framework was approved by the Board of Commissioners in April 2021. Planning & Land Use received
$600,000 for a two-year rental assistance program to help shrink the gap in income and rental costs. Other
programs, including the Emergency Rental Assistance Program (ERAP) and Homeownership Assistance Program
(HAP), were implemented through the Department of Health & Human Services. ERAP approved 5,337
applications for a total of $27,416,276 in assistance dollars.
Additionally, the county allocated funds for water and sewer infrastructure to support Habitat for Humanity’s
development of two affordable housing neighborhoods and infrastructure for Eden Village, a tiny home
community established to address chronic homelessness in the community. The county also contributed $1.89
million for Starway Villages to support the development of 278 affordable units.
Gap Rental Assistance Pilot Program: Years 1 & 2
The Workforce Gap Rental Assistance Pilot Program (GapRAPP) was established in response to the economic
downturn by assisting households in need of financial assistance. GapRAPP was designed to alleviate some of
the increased housing insecurity for households who experienced financial hardship due to the pandemic.
In the first year, 34 eligible households earning between 60% and 120% of the AMI, received monthly subsidy
of $200 per month for single person households and $300 for multiple person households.
Updated federal guidelines and programmatic changes were made for the second year of the program for
the 100 households receiving assistance. Income requirements were limited to between 60% and 80% of the
AMI and the monthly subsidy was increased to $450 per household due to the significant increase in rents over
the past year.
Dedicated $15 million
over five years. The first
cycle awarded a total of
$3 million to two projects,
adding 152 affordable
units.
The county has made greater
commitments to extend water
and sewer infrastructure in the
northern areas of the county,
so that our community has
affordable areas to grow.
With American Rescue Plan
funds, the county was able to
provide gap financing to this
Low-Income Tax Credit
project that will bring 278
affordable units.
Established in 2018, this
policy allows the county to
convey parcels to qualified
nonprofits to build workforce
housing for local families to
purchase.
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City of Wilmington Housing Updates
The City of Wilmington has a more than 20 year history of ensuring low-to-moderate income residents are able
to attain adequate housing within the city. Using general funds along with Community Development Block Grant
(CDBG) and HOME Investment Partnership Program (HOME) funds allocated by the U.S. Department of Housing
and Urban Development (HUD), the city’s financial commitment to affordable housing totals more than $52
million to date.
The outcome of the city’s investments means that over 400 Wilmington families are now homeowners and over
300 families are able to remain housed because of major housing repairs funded by the city. Additionally, city
funds have leveraged other funds for the construction or rehabilitation of 585 rental units within the city.
Recognizing the increasing need in FY 23, the City Council enacted an on-going policy to dedicate 1 cent of the
property tax to affordable/workforce housing. City Council designated an additional $1.5 million for gap
financing, bringing the City’s FY 23 General Fund contribution for affordable/workforce housing programs to
$3,650,103.
City Community Development & Housing Staff
A team of six staff members make up the City’s Community
Development and Housing Division (CDAH). Staff members hold
credentials including licensed real estate professional, a licensed
general contractor, master’s degrees in accounting and public
administration, and bachelor’s degrees in social work and
psychology. Two staff members are Certified Housing Counselors.
All told, the staff team has over 40 years of experience in
community development and housing. Additionally, two full-time finance staff members are assigned to CDAH
to administer financial transactions and manage the City’s housing loan portfolio of 418 active loans totaling
$20,609,290.
Housing Programs
The City of Wilmington continues to operate its flagship programs:
• Home Ownership Pool (HOP), in partnership with local banks First Citizens, Truist, Corning Credit Union,
First Bank, and North State, provides up to 50% of a mortgage at 0%, 30-year term with additional Down
Payment Assistance (DPA) up to $25,000. In FY23, the program was updated to increase the maximum loan
amount to $327,750 and add a DPA up to $50,000 for the purchase of homes in need of repair. To date
in FY23 there are 14 pre-qualified HOP homebuyers totaling $1.7 million and three loans closed totaling
$664,508 including partner bank mortgage.
• Down Payment Assistance provides up to $50,000 in assistance that is available for use with other
mortgage products. In FY23, three DPAs have been provided to Habitat for Humanity homebuyers.
• Owner-Occupied Housing Rehabilitation provides loans for the rehabilitation of owner-occupied houses to
retain safe, decent, affordable housing and prevent displacement. In FY 23, City Council updated the
maximum loan amounts to keep up with inflation. Homeowners with incomes at or below 50% AMI may
receive a forgivable loan up to $90,000. Homeowners with incomes between 50% AMI and 80% AMI may
receive up to a $100,000 loan amortized up to 30 years at 2% interest. Thus far in FY23, 18 loans are pre
-qualified totaling $1.7 million.
• Rental Rehabilitation Incentive Loan supports small developers/investors and property owners to
rehabilitate housing for use as affordable rental properties. In FY 23, the maximum loan was increased to
$200,000 at 0% interest for up to 30 years. Property owners agree to maintain the property at
affordable rents for up to 20 years. Since the inception of the program in 2010, 16 loans have been made.
Currently, there are six loans in process.
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COVID-19 Recovery
The 2020 CARES Act made available additional funds to jurisdictions receiving Community Development Block
Grants (CDBG) from the U.S. Department of Housing and Urban Development (HUD). The City of Wilmington
received two awards in 2020, totaling $1,490,639.
In order to support communities across the country to address homelessness, $5 billion dollars of American
Rescue Plan act funds were allocated to HUD. The City of Wilmington received an allocation of $2.51 million in
these HOME ARP funds.
Additionally, the City received $25.9 million in other American Rescue Plan funds. In accordance with ARP
guidance, City Council allocated the funding across three strategy areas 1) Economic & Community Assistance,
2) City/Community Infrastructure Investment, and 3) City Continued Response & Recovery.
Certified Housing Counseling Agency
Based on recommendations from the Workforce Housing Advisory Committee to expand homeownership
opportunities, the City of Wilmington recently became certified as a HUD-Certified Housing Counseling Agency.
As a HUD-Certified Housing Counseling Agency, the City of Wilmington is a member of the North Carolina
Housing Coalition Housing Counseling Network. This allows the City to access Down Payment Assistance and
Mortgage Products offered through the North Carolina Housing Finance Agency (NCHFA), Community Partner
Loan Pool (CPLP), and the North Carolina Office of Recovery and Resiliency (NCORR) Homeownership
Assistance Program (HAP).
This new distinction will allow the City of Wilmington to participate in the North Carolina Housing Coalition’s
HAP, providing down payment and closing costs assistance to first time homebuyers, and NCHFA’s CPLP, which
also provides down payment assistance. The NCHFA allocates funds to support the CPLP program on an annual
basis. For 2023, the Agency has budgeted up to $10 million to assist CPLP-eligible home buyers.
The City of Wilmington offers free, in person, one-on-one Housing Counseling Services to individuals or families
exploring Affordable Housing and Homeownership. Counseling services include Pre-Qualification, Pre-
Purchasing & Post Purchasing, Financial Management and much more all tailored to each household’s unique
financial situation. These services are provided by HUD-Certified Housing Counselors in-person and virtually.
Additionally, group workshops are offered for homebuyers. Thus far in FY 23, 106 persons attended seven
workshops and 34 persons have received one-on-one housing counseling in one or more sessions.
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Density Bonus: MD-10 MD-17 CDMU*
Maximum Density 10 units/acre 17 units/acre 17 du/acre
Workforce Housing Bonus 26 units/acre 19 units/acre Unlimited
Max Density with Bonus 36 units/acre 36 units/acre Unlimited
*Commercial District Mixed Use (CDMU) is a use type permitted with conditions in the Community Business (CB), Regional Business (RB) and Office and Institutional (O&I) districts.
Starway Villages
The most historic local commitment to affordable housing occurred last year with the commitment to Starway
Villages, a 4% Low Income Housing Tax Credit development located on Carolina Beach Road in the City of
Wilmington. City Council approved using $3.5 million of American Rescue Plan Act funding toward gap
financing, along with New Hanover County Commissioners who approved $1.89 million in ARPA funds toward
the project.
This is the first affordable development in the history of the Cape Fear
region that both the City of Wilmington and New Hanover County have
jointly gap funded and is the largest gap funding commitment ever
made individually by either entity. In addition, the project received a $9
million grant from the North Carolina Office of Recovery and Resilience
leveraging a total of more than $16 million of public funding toward the
project.
The multi-family community will add 278 affordable units to the local housing stock, including 20 fully
accessible ADA units. The one-to-three-bedroom apartments will serve households with incomes ranging from
$27,346 to $47,550. The project is expected to break ground in late spring/early summer 2023.
The Residence at Canopy Pointe
The Residence at Canopy Pointe will be a 72-unit senior affordable housing complex across the street from
amenities in the Ogden Market Place. Canopy Pointe is an affordable senior living development planned for
Middle Sound Loop Road, for which the City provided gap financing in the amount of $1.85 million and 9%
LIHTC from the North Carolina Housing Finance Agency.
The three-story senior community development will offer 36 one-bedroom and 36
two-bedroom apartments for individuals ages 55 and over making 30% to 80%
of the area’s median income. Rents will be based on income. LIHTC projects are
required to maintain affordability levels for 30 years. The project broke ground
February 24, 2023.
Land Development Code Updates
The City has also included several updates to its LDC to improve housing options in the City of Wilmington:
• Increased the maximum size of both accessory structures and dwelling units from 900 sq. ft to 1200 sq. ft.
• Increased the maximum size of accessory dwelling units from 30% to 50% of the principal dwelling unit.
• Authorized submission of a master plan instead of a detailed site plan for conditional district applications in
which 50% of proposed units are designated as workforce housing.
• Authorized submission of a development narrative instead of a detailed site plan for conditional district
applications in which 100% of proposed units are designated as workforce housing.
• Defined elderly housing and workforce housing as two separate terms and removed the ambiguity between
the term low-income and workforce housing.
• Allowed density bonuses in several districts when 10% of units are designated as workforce housing for at
least 15 years.
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The Workforce Housing Advisory Committee is tasked with recommending necessary procedures, programs, or
policies to promote workforce housing. The following recommendations were arrived at after thoughtful
consideration and debate among the members of the Committee, with a shared understanding that any effort
to adequately address our local housing crisis will require both substantial investment and a multifaceted
approach.
These recommendations are a call to action to build upon our City and County's existing strengths and
infrastructure with increased funding for successful programs, while also identifying and prioritizing the most
urgent gaps in our community's available housing opportunities.
Recommendation: Creation of a Dedicated Affordable Housing Development Fund
The committee recommends the creation of a fund specifically for gap financing and/or funding of
affordable housing development projects to augment the limited funding currently offered by the City and
County.
• In order to encourage affordable housing developers to build in our community, this fund should be
accessible on a rolling basis allowing it to be included in development proformas and applications.
• This dedicated fund should be available to support affordable housing development projects,
including, but not limited to, Permanent Supportive Housing, Redevelopment/Rehabilitation Tax
Credits, Low-Income Housing Tax Credit (LIHTC), and For-Sale projects.
• As new construction costs continue to rise (14.1% year over year increase), the need for local
funding assistance has become critical, particularly at the time of application to the North Carolina
Housing Finance Agency.
Recommendation: Pursue Policy Changes
The committee recommends implementing local policy and advocating at the state level to expand existing
housing protection laws, programs, and regulations to a larger demographic.
• Examples include eviction mediation programs, source of income protection policy, tax increase limits and/
or tax rebates for seniors and persons with disabilities, and extension of fair housing laws.
• There are 21 states and over 120 cities, including the City of Charlotte, which have statutes which dictate
against source of income discrimination.
Additionally, the committee recommends the continued pursuit of land use changes to support diversity in
housing options, such as the recent City and County amendments related to Accessory Dwelling Units.
• Restrictive or exclusionary zoning restricts the type and amount of housing that can be built, prohibiting
multifamily housing, setting minimum lot sizes and parking requirements, mandating setbacks, and limiting
the height of houses.
• Zoning regulations that are written to allow a diverse range of housing types, including multifamily homes,
manufactured homes and accessory dwelling units, make it possible to deliver housing that meets a
broader range of needs and price levels.
2023 Committee Recommendations
“Being able to have affordable housing made it possible for me to have a roof over my children & I’s head. If not, we would
have been homeless. Having this place allowed me to be able to see my other child, whom I haven’t seen in months. It brought
my family back together, it has impacted me greatly. Thank you.” –New Hanover County resident and mother in an apartment
made affordable by the Low-Income Housing Tax Credit program.
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Recommendation: Reduce Barriers to, and Support the Production and Preservation of a
Diversity of Housing Options
The committee recommends policy and expanded funding to incentivize the production of a variety of housing
types attainable for at a variety of income levels.
Examples include:
• Infrastructure investments such as water and sewer
• Supporting non-profit organizations in their affordable housing goals
• Support rehabilitation of existing housing stock through programs or policy
• Land Conveyance
• Allotment for an increased diversity of housing types by right
Recommendation: Replacement of One-Time Funding Opportunities
The region has received a substantial infusion of state and federal funds over the past five years. Beginning
with Hurricanes Matthew and Florence relief aid, and continuing with COVID-19 relief, organizations have
grown to perform at the capacity required to activate these funds.
As these funding sources are phased out in upcoming years, the committee recommends directing additional
local dollars to continue the successful programs, projects, and organizational functions that have been funded.
A snapshot of examples of programs and projects that were funded are shown below.
Programs and Projects Households Served Units Created Amount Committed
Gap Rental Assistance Pilot Program (GapRAPP) 124 — $225,450
Emergency Rental Assistance Program (ERAP) 5,337 — $27,416,276
Habitat for Humanity — 45 $1,116,751
Eden Village — 27 $250,000
Eviction Prevention Program 335 — $832,042
Driftwood Rehabilitation 15 — $698,593
Starway Villages — 278 $5,390,000
Rental Rehabilitation Program 4 — $250,000
TOTALS 5,815 350 $36,179,112
Hurricane Florence blew out the windows to Becky’s home and flooded half of the house. She also had severe damage to the roof.
The original repairs were not done properly, and within a couple of years, she was in danger of having to leave her affordable
home when a friend referred her to WARM NC. She says, “You have given me so much more than a sound and stable home to live
in. You have helped release me from the trauma that happened to my home and in my home.” - Former teacher’s assistant
As part of Cape Fear Habitat's Homeownership Program, Tia received monthly financial counseling, attended classes, and participated in
hands-on home maintenance training. She was involved in the building process of her future home, and the homes of others, by working
alongside volunteers 2-3 times per month. After 12-18 months, she purchased her home with an affordable mortgage and has an asset to
pass down to future generations. "My home means a new beginning and a brighter future. My daughters and I will have a stable home,
not just a house, a future together in a place that we own.” – NHC resident who works in a healthcare setting
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Recommendation: Expand Housing Counseling & Financial Literacy Programs
The committee recommends expansion of the housing counseling programs to encourage and support homeown-
ership including, but not limited to, the following:
• Workforce Retention
• Retaining Talent & Local Graduates
• Housing-Cost-Burdened Households
• First-Time Homebuyers
• Residents in Pre-foreclosure
• Pathways for Individuals coming from Vulnerable or Transitional Situations
• Individuals Living in Assisted Housing
“We entered the housing market very unexpectedly. Just having graduated off home-hospice care, I was recovering from a very
serious illness when our landlord put our apartment on the quick moving market. Without the Cape Fear Community Land
Trust, I would have likely had to relocate with family to continue my rehabilitation. Not only were we able to obtain affordable
permanent housing, but we also prep to become responsible homeowners through the process. Thanks to this program, I have
continued to make a remarkable recovery, even exceeding my own hopes! I’ve been able to return to my passion of performing
music and I am able to volunteer as a yoga instructor to support the local recovery community! My spouse has maintained the
same job for over 10 years. We have stability, security, and sense of community!” - Cape Fear Community Land Trust recipient
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Affordable Housing: Affordable housing is defined as housing for which the occupant is paying no more than 30
percent of gross income for housing costs, including utilities.
American Rescue Plan Act (ARPA): The American Rescue Plan delivered $350 billion from the federal
government to state, local, and Tribal governments across the country to support their response to and recovery
from the COVID-19 public health emergency.
Area Median Income (AMI): Area Median Income is defined as the midpoint of a specific area’s income
distribution and is calculated on an annual basis by the U.S. Department of Housing and Urban Development
(HUD).
Community Development Block Grant Program (CDBG): HUD program is designed to provide decent housing and
a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-
income persons. Eligible activities include:
• Acquisition of real property
• Relocation and demolition
• Rehabilitation of residential and non-residential structures
• Construction of public facilities and improvements, such as water and sewer facilities, streets,
neighborhood centers, and the conversion of school buildings for eligible purposes
• Public services, within certain limits
• Activities relating to energy conservation and renewable energy resources;
• Providing assistance to profit-motivated businesses to carry out economic development and job
creation/retention activities.
Community Partners Loan Pool (CPLP): Program through North Carolina Housing Finance Agency which provides
qualified home buyers with down payment assistance.
CPLP assistance is structured as a 0% interest, deferred second mortgage. The term of the CPLP loan matches
the term of the first mortgage. The CPLP Loan has no monthly payment and is repaid when the home is sold,
refinanced or at the end of the loan term.
Total household income cannot exceed 80% of the Area Median Income for the county in which they intend to
purchase a home. Borrower must have proof of sufficient, stable income to afford and maintain their potential
home.
• Borrower must have a minimum credit score of 640.
• Borrower’s housing ratio must be between 20% and 32% and Total Debt-to-Income ratio may not
exceed 45%.
• Borrower must complete an approved home buyer education course and receive at least two hours
of pre-purchase counseling from a HUD-approved provider.
2022 HUD Income Limits for Wilmington, NC HUD Metro Area (Effective January 30, 2022)
AMI Household Size
1 2 3 4 5
60% AMI $35,820 $40,920 $46,020 $51,120 $55,260
80% AMI $47,760 $54,560 $61,360 $68,160 $73,680
120% AMI $71,640 $81,840 $92,040 $102,240 $110,520
Definitions
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Entitlement Community: Central cities of Metropolitan Statistical Areas (MSAs), other metropolitan cities with
populations of at least 50,000, and qualified urban counties with populations of at least 200,000 (excluding
the population of entitled cities) are entitled to receive annual grants. HUD determines the amount of each
entitlement grant by a statutory dual formula which uses several objective measures of community needs,
including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag
in relationship to other metropolitan areas.
Extremely Low Income: A household whole income is at or below 30% of AMI, as determined by HUD, with
adjustments made for smaller or larger families.
Fair Housing: Discrimination based on protected class status, including race, gender, age, ethnicity, national
origin, sexual orientation, gender identity, marital status, or veteran status.
Foreclosure: The legal process by which a lender seizes and sells a home or property after a borrower is
unable to meet their repayment obligation.
HOME Investment Partnerships Program (HOME): HUD program designed to provide and create affordable
housing for low-income households. Communities use the program funds, often in partnership with local nonprofit
groups, to fund a wide range of activities. Eligible activities include: building, buying, and/or rehabilitating
affordable housing for rent or homeownership or providing direct rental assistance to low-income people.
HOME Rent Limits: For all HOME projects, the maximum allowable rent is the HUD calculated High HOME Rent
Limit (updated annually).
Housing Cost Burden: Households are considered cost burdened when they spend more than 30% of their gross
income on rent, mortgage and other housing needs.
Housing Choice Voucher (formerly known as Section 8): A federal housing assistance program in which
participants pay a portion of their adjusted gross income (i.e. income after standard deductions) for rent and
the remainder of the rent is paid by HUD. Vouchers can be either project-based or tenant-based. A project-
based voucher stays with the unit when a tenant moves. A tenant-based voucher allows a tenant to use it in any
market-rate rentals that accept vouchers, and the voucher remains with the tenant when they move. A household
with a voucher usually has to pay only 30% of their income for rent and utilities, and the voucher covers the
remaining costs up to fair market rent value.
Low Income Household: A household whose income does not exceed 80 percent of the AMI, as determined by
HUD, with adjustments for household size.
Low Income Housing Tax Credit (LIHTC): Subsidizes the acquisition, construction, and rehabilitation of affordable
rental housing for low- and moderate-income tenants. The largest source of new affordable housing in the
United States
Market Rate Rent: The prevailing monthly cost for rental housing.
North Carolina Housing Finance Agency: A self-supporting agency, the North Carolina Housing Finance Agency
sells bonds, administers tax credit programs and uses state and federal funds to produce affordable housing in
partnership with local governments, nonprofit housing producers and for-profit developers.
2022 HUD Rent Limits
Studio 1 BR 2 BR 3 BR 4 BR
High HOME Rent Limit 814 988 1164 1407 1550
Fair Market Rate 814 988 1164 1545 1992
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Pre-foreclosure: The first step in the foreclosure process, it is designed to give homeowners options to stay in
their homes before a foreclosure. Pre-foreclosure occurs when a homeowner fails to make mortgage payments,
prompting the lender to issue a notice of default. This is a legal notice and means that the lender has begun the
legal process of foreclosure.
Severe Housing Cost Burden: Severe Housing Cost Burden is the percentage of households that spend 50% or
more of their household income on housing.
Subsidized Housing: Subsidized housing is housing that is made available at below-market rates through the use
of government subsidies. Most subsidized housing is reserved for income-qualifying low-income households and
have rents that do not exceed a specific percentage (usually 30%) of a household’s gross annual income.
Naturally Occurring Affordable Housing: Unsubsidized affordable housing, also known as naturally occurring
affordable housing, is housing that is not currently publicly subsidized. The costs that this housing can demand in
the unsubsidized private market given the properties’ quality, size, age, or amenities is low enough such that the
tenants of these properties, whose income might otherwise qualify them to be a participant in publicly funded
housing programs, can reasonably afford them.
Very Low Income: A household whose income is at or below 50% of AMI, as determined by HUD, with
adjustments made for smaller or larger families.
Workforce Housing (Committee Definition): Housing that is affordable to households earning up to 120 percent of
Area Median Income (AMI).