HomeMy WebLinkAboutProposals Summary - Workforce Housing Services Program RFP FY251
Workforce Housing Services Program
Request for Proposals FY 25
Summaries for the Cross-func�onal Review Team Mee�ng on August 28, 2024
The RFP period was released July 8 and closed August 5. There are eleven proposals seeking
$11,114,237 in support of 864 total units and households. Total project budgets are
$200,397,064.
Post-submission interviews occurred August 12-14. The interviews were facilitated by the
Housing Team and Grants Analyst Maria Standfest. The interviews were an opportunity to ensure
understanding of the applicant’s project budget and financial pro forma and to receive insights
into the applicant’s capacity to adhere to the county’s timeline for allocation of Federal funds by
December 31, 2024, and disbursement of funds by December 31, 2026. Notes and clarifications
from those interviews are labeled in SharePoint, along with the other application materials.
The review team members will receive printed copies of the essential application documents and
a link to all materials in SharePoint. You’ll receive the SharePoint link by the close of business
today. A notebook of printed materials will be distributed tomorrow.
Thank you for contributing to the review on August 28th, 9am, Government Center, First Floor.
Blue Ridge Atlan�c Development
Reques�ng $1.5 million loan for construc�on of 184 units called Avenue Flats at 509 S. Kerr
Avenue, Wilmington. 30-year loan term, 1% interest, 10% cash flow payments once stabilized.
Applicant is seeking Low Interest Housing Tax Credits (LIHTC). Total Project Budget: $58,921,099.
NHC funds would be 3% of the project budget. Cost Per Unit: $320,223. Income AMI: 30 units at
30%, 36 units at 50%, 65 units at 60%, and 53 units at 80% of area median income (AMI). Period
of Affordability: 30 years affordability preserved through a land use restric�on covenant recorded
at closing and compliance cer�fica�ons submited to the NC Housing Finance Agency. Vouchers:
Housing choice and project-based vouchers accepted. Goal: Increase housing stock.
Alloca�on & Disbursement Timeline: The LIHTC process will be completed in January 2025
aligning with the alloca�on of funds in December 2024. Avenue Flats will break ground in
June/July 2025 with the construc�on �meline of 16 months. With the closing date and start of
construc�on set to occur in June/July 2025, the disbursement of funds would occur before
December 31, 2026. Applicant’s rezoning applica�on was considered by the Wilmington Planning
Commission on August 7, 2024, and is scheduled for Wilmington City Council on September 3,
2024.
Cape Fear Collec�ve
Requesting $837,237 for 6 units in the Block-by-Block conversion rehab project. Forgivable loan
with 0% interest requested. Scattered single-family rentals, various addresses in the City of
Wilmington. Anticipate funding of 18 total units: 6 units NHC WHSP, 6 units COW; and 6 units
NHCE. Total Project Cost: Rehabilitation $2,511,170 and Property Acquisition $3,503,418 =
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$6,015,128. Development Cost Per Unit: $139,539. Income AMI: Households at or below 80%
AMI. Goal: Retain existing rental stock. Period of affordability: 20 years minimum. Preserved per
the NHC loan terms and deed restrictions. Homes will be transferred into the Cape Fear
Community Land Trust as they become vacant for sale to low-to-moderate homebuyers. The
Land Trust model ensures affordability for 76 years. Over time portions of the rental portfolio
may be sold to mission-aligned organizations for continued use an affordable rental housing. In
this instance, CFC will utilize deed restrictions to ensure a longer-term affordability period.
Vouchers: CFC currently accepts Housing Choice Vouchers and will continue to do so.
Alloca�on & Disbursement Timeline: An�cipate the start of rehabilita�on no later than November
2024. Comple�on of all NHC units by October 2026 at the latest. CFC has control/ownership of
vacant units iden�fied for NHC WHSP funds. Rehabilita�on can begin immediately a�er the
development of the scope of work and bidding. CFC states: “This project is shovel ready. The
houses are available and ready for work to begin upon receipt of funds.”
Cape Fear Community Land Trust
Requesting $300,000 grant for the acquisition of 2 homes during 2024 and 2025. The applicant
will accept a loan. The homes will be purchased from Cape Fear Collective (CFC) post-renovation.
CFCLT will manage and oversee the rehabilita�on of CFC’s rehab projects, rehabilita�ng the
homes to CFCLT standards and pulling one home at a �me out of poor condi�on. Total Project
Budget: $650,000. NHC funds are 46% of the project budget with the balance requested from
the New Hanover Community Endowment. Cost Per Unit: $325,000. Income AMI: The homes
will be sold to residents making less than 80% AMI. Period of Affordability: Secured at the price
range in perpetuity by a 99-year renewable ground lease. Goal: Retain affordable housing stock.
Alloca�on & Disbursement Timeline: The first home will be purchased from Cape Fear Collec�ve's
inventory within four months upon receiving funding. Upon comple�on of the first home, CFCLT
will re-use the funding to acquire and redistribute another home to a partner family within the
first year. Purchase and repair of 2 homes an�cipated by December 2025.
Cape Fear Habitat for Humanity
Reques�ng $1 million grant for 10 units. Construc�on of 6 homes in Haven Place for
homeownership; buyback and rehab of 4 homes in the City of Wilmington. Project Budget:
$2,014,640. $809,640 for construc�on of six new homes, cost $134,940 per unit. $1,205,000 for
buyback and rehab of four homes, cost $295,000 per unit for three units and cost $320,000 per
unit for one unit. Funding Sources: WHSP request is almost 50% of revenue. Other revenue
includes dona�ons, mortgage payments, house sponsorships and City of Wilmington
Downpayment Assistance of $1,014,640. Income AMI: 30%-80% AMI range. Goals: Increase
housing stock and retain exis�ng stock. Period of Affordability: 20 years and beyond. Deed
restric�ons offer CFH the first right to repurchase at a fair market price. CFH inspect and refurbish
homes and sell to a new homeowner at an affordable price.
Alloca�on & Disbursement Timeline: First, the 4 buyback/rehab homes are currently owned by
Habitat homeowners, who have outgrown their homes. Habitat will purchase these homes in late
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2024, with remodeling and upgrades underway in early 2025. Remodeling can take from 8 to 12
months. With this �meline in mind, Cape Fear Habitat will be able to offer these homes to
individuals in their program by December 31, 2025. Second, the infrastructure and land
development within the 35-home Haven Place subdivision was completed in July of 2024,
rendering all 35 lots shovel-ready for construc�on of 6 new homes. Construc�on on the first home
in Haven Place will be finished in September 2024, and the remaining 34 homes will be finished
by December 2026. Habitat an�cipates construc�on to start on the six proposed Workforce
Housing-funded homes in Haven Place from June 2025 through December 2025. Habitat states:
“Given the construc�on �meline of 5 to 6 months, and variable homeowner progression through
our Homeownership Program, we an�cipate occupancy in all six Haven Place homes by
September 31, 2026.”
Housing & Economic Opportunities, Inc. (Wilmington Housing Authority Houston Moore)
Requesting $1.5 million for construction of 200 units at Houston Moore. The applicant will accept
a loan. The proposal is to demolish 150 existing units and rebuild 150 affordable units plus 50
more. Total project budget $67,544,905. Cost per unit: $337,725. 4% LIHTC requested with
closing anticipated October 1, 2025. Permanent mortgage financing and tax credit equity is 93%
of project revenue. Income AMI: 50 units at 30% AMI, 100 units at 60% AMI, and 50 units at 80%
AMI. Goal: Retain existing rental stock and increase rental stock. Period of Affordability: LIHTC
requirement of 30 years minimum and Public Housing Authority statutory purpose, Federal
regulations, and policies. Vouchers: Yes. 150 units covered by either RAD or PBRA. The remaining
50 units will also take vouchers, but they will not be project-based.
Alloca�on & Disbursement Timeline: Scheduled to close in June of 2025 with a 16-month
construc�on period, will move residents in around 12 months of construc�on with the balance
of the buildings coming in the remaining 4 months of the construc�on period. HEO states: “The
alloca�on of funds by 12/31/2024 works perfectly for our closing in June of 2025. These funds
will be u�lized at closing for construc�on so that the 12/31/2026 deadline can be met.”
Housing & Economic Opportunities, Inc. (Wilmington Housing Authority Solomon Towers)
Requesting $1.5 million loan for Solomon Towers rehabilitation of 151 units of public housing for
seniors. Total Development Budget: $30,278,792. Cost Per Unit: $200,522. 86% of revenue is
permanent loan, LIHTC equity, and WHA note. 4% LIHTC requested with closing anticipated
October 1, 2025. Income AMI: 100% of the property’s units will be set aside for seniors at or
below 60% of AMI Goal: Retain existing affordable housing stock. Period of Affordability: Public
Housing Authority statutory purpose, Federal regulations, and policies. Vouchers: 100% of the
property’s 151 units will be supported under a project-based Sec�on 8 contract and, as such,
residents would be provided with rental assistance upon leasing a unit.
Alloca�on & Disbursement Timeline: The applicant an�cipates that it will close on a 4% low-
income housing tax credit transac�on and all financing and the finaliza�on of the HUD RAD
conversion, by October 1, 2025. The in-place rehabilita�on of the property will commence
immediately a�er closing and substan�al comple�on of construc�on is an�cipated 12 months
therea�er in October 2026. An award of funds prior to year-end 2024 would close the current,
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an�cipated funding gap, allow the applicant to present this award to its lender(s) and investor(s)
as it closes the proposed LIHTC transac�on in the fall of 2025. HEO would then plan to use the
requested loan proceeds to fund rehabilita�on during the end of 2025 through the third quarter
2026 with full disbursement well in advance of December 31, 2026.
LINC Inc.
Reques�ng $577,500 grant for construc�on of 6 units called LINC Permanent Suppor�ve Housing
at 913 S. 4th Street, Wilmington. The applicant would consider a forgivable loan. LINC purchased
two duplexes last year. Each duplex houses two (2) bedroom units. As part of that purchase, LINC
acquired two lots next door to the property that will allow construc�on of a four-bedroom house
and an Accessory Dwelling Unit (ADU). Total Project Budget: $577,500. NHC funds are 100% of
the project budget. Cost Per Unit: $96,250. Income AMI: Units limited to residents at or below
60% AMI. Period of Affordability: 20 years affordability preserved through a land use restric�on
covenant recorded at closing. Vouchers: Open to accep�ng housing choice vouchers - no previous
experience. Goals: Increase housing stock and increasing housing access.
Alloca�on & Disbursement Timeline: LINC owns the property and desires to break ground as soon
as funding is allocated. LINC an�cipates breaking ground within 30 days of approval. The
construc�on �meline is comple�on by June 30, 2025. Leasing and move-in during July 2025.
New Hope CDC
Reques�ng a $1 million grant. $500K is requested to provide homebuyer downpayment
assistance (DAP) to 13 clients and $500K is requested to provide tenant-based rental assistance
to 127 households. 140 total units and households. Total Project Budget: $1,070,000. NHC funds
are 94% of the project budget. Income AMI: For rent assistance - 22 households at or below 60%
AMI, 25 households between 61-79% AMI, and 80 households between 80-120% AMI. For
downpayment assistance - “workforce families in NHC.” Period of Affordability: 20-year period
of affordability by filing a Downpayment Assistance Deed of Trust for the amount given toward
the purchase, as a zero percent interest rate loan. Should the DAP par�cipant try to sell or transfer
an ownership interest in the home before the 5-year period, the en�re amount recorded in the
Deed of Trust must be repaid to DAP and funds will be collected and used by another eligible
household. Goal: Increasing access to housing.
Alloca�on & Disbursement Timeline: The Rental Assistance Program, already in progress, will
allocate funds by December 31, 2024, and disburse them by December 31, 2026, through efficient
enrollment, mandatory monthly follow-ups, and case management. Similarly, the Downpayment
Assistance Program will allocate funds by December 31, 2024, and disburse them by December
31, 2026, by assis�ng eligible par�cipants with down payment and closing costs, coupled with
financial counseling, resource referrals and monthly mee�ngs.
Reveler Development Co.
Reques�ng $1.5 million grant for construc�on of 95 units called The Helm at 1010 N. 4th Street,
Wilmington. The applicant would accept a loan. Total Project Budget: $21,500,000. NHC funds
would be 7% of the project budget. Cost Per Unit: $226,315. Income AMI: 50% of units would
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be leased to residents at or below 80% AMI. The remaining units would be leased to residents at
or below 120% AMI. Period of Affordability: 20 years affordability on 50% of the units ensured
through a deed restric�on. Adjustment of unit type and loca�on based on snowflake analysis to
provide rota�ng unit types for affordability based on demand. Vouchers: Accepted via
Wilmington Housing Authority and Trillium. Goal: Increase housing stock.
Alloca�on & Disbursement Timeline:
Funds allocated by 12/31/2024 would be used to support the construc�on release,
groundbreaking, and ini�al stormwater and founda�on supports star�ng in December 2024. The
construc�on loan would pull from equity sources ini�ally and fully un�l draw down to debt
sources. NHC funds would allow pre-con services to start in December 2024. The es�mated
�meframe for full construc�on of 95 units would be 14-18 months pu�ng cer�ficate of
occupancy date in June 2025. This project currently has project construc�on release and has
undergone full Technical Review Commitee and stormwater review.
WARM NC
Requesting $200,000 grant for emergency repairs to 10 units. 7 units are in unincorporated NHC.
Total Project Budget: $225,000. Cost Per Unit: $22,500. NHC funds would be 88.9% of revenue.
Income AMI: 2 units at or below 50% AMI, 7 units at or below 80% AMI, and 1 unit between 80%
and 120% AMI. Goal: Retain affordable housing stock. Period of Affordability: Homeowners
would sign a no interest loan agreement for the cost of repairs with annual reductions until the
loan is reduced to zero over a 15-year period. If the owner chooses to sell in less than 15 years,
they are obligated to return any funds not forgiven at the time of the sale.
Alloca�on & Disbursement Timeline: WARM NC has a pre-approved wai�ng list of single-family
housing needing emergency home repairs. Repairs on these units would begin (or con�nue) upon
receipt of funding. Each unit will take 7 - 120 days to complete depending on severity of repairs,
with an average of one unit completed per month. October 2024 - receive no�ce of award;
November 2024 - begin repairs on pre-approved and pre-selected units; November 2024 to July
2025 - substan�al repair work has been completed; December 2026 - repairs completed on 10
units and funding exhausted.
Wilmington Realtors Founda�on Inc.
Requesting a $1.2 million grant for construction of 48 new units called Pierson Pointe. The
applicant will accept a loan. NHC funds will bring sewer and water to the site as soon as permitting
is completed. Total Project Budget: $11,633,800. Cost Per Unit: $242,371. Income AMI: 80% to
120% AMI. Goal: Increase homeownership stock. Period of Affordability: The purchase of each
townhome will come with deed restrictions. Restrictions include being owner-occupied, resale of
the townhomes is capped at a two percent increase per year, and the foundation has the first
right and refusal to purchase the townhome back.
Alloca�on & Disbursement Timeline: The site has been rezoned and is wai�ng for final permi�ng.
Once permi�ng is finalized funds can be used to bring sewer and water to the property allowing
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builders to start the construc�on of the 48 townhomes to be sold. The applicant reported to be
“in the process of permi�ng with CFPUA/NCDEQ/NHC.” Proposed �meline clarifica�on:
• 2025 1st quarter-Begin Site & U�lity Construc�on
• 2025 2nd quarter-Site & U�lity Construc�on
• 2025 3rd quarter Site & U�lity Construc�on
• 2025 4th quarter- Ver�cal construc�on of units & Marke�ng and taking applica�ons for
purchasing units
• 2026 1st quarter Ver�cal construc�on of units. Marke�ng and taking applica�ons for
purchasing units
htps://www.starnewsonline.com/story/news/local/2024/08/15/new-townhome-
development-planned-for-carolina-beach-road-in-wilmington-nc/74765787007/