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HomeMy WebLinkAboutWHAC 2025 Annual Report - FINAL2025 Annual Housing Report 2 MESSAGE FROM THE COMMITTEE In 2019, the City of Wilmington and New Hanover County established the Workforce Housing Advisory Committee to identify strategies for enhancing and expanding workforce housing in the community. Our responsibilities include launching a public awareness campaign, creating a long-term work plan, and advising the governing boards on projects that support workforce housing in both the city and county. The committee has previously made recommendations on funding, policies, legislation, housing diversity, programs, and education. These recommendations have been the result of thoughtful collaboration among members, all of whom recognize that addressing local housing needs requires substantial investment and a comprehensive approach. It is a great honor to serve the city, county, and community in housing affordability, a cause we are deeply passionate about. The housing crisis is a complex issue that requires a multifaceted approach. Therefore, the Workforce Housing Advisory Committee (WHAC) developed a strategic plan to guide recommendations and the committee's work plan. This plan has two primary goals: Balancing housing costs with wages and increasing housing diversity. Furthermore, the plan defines strategic objectives, desired outcomes, and performance measures to guide its implementation. Committee Members Tom Gale, Chair Paul Stavovy, Vice-Chair Sharmonique Brantley Roger Gins Chad Hill Krysti Keser Eric Knight Katrina Knight Morgan Moskal Marshall Pickett McKay Siegel Antrevonn Tate Jody Wainio 3 2024 Accomplishments The City of Wilmington and New Hanover County achieved significant workforce and affordable housing milestones in 2024. The chart below highlights projects currently in production that utilized density incentives and/or local funding to create affordable housing over the past year. 6 48 225 32 178 60 184 30 years 20 years 20 years 15 years 30 years 15 years In perpetuity Name of Residence TotalUnits 6 184 48 313 units Number ofAffordable Units 23 32 20 60 AffordableUnit Term Length *Data obtained from the City of Wilmington Housing and Neighborhood Services Division and the New Hanover County Workforce Housing Services Program. In 2022, New Hanover County and the City of Wilmington published an updated Housing Needs Assessment, building on the 2020 report. The new assessment reveals a continued housing shortage projected in the county, showing a need for 12,147 rental units over the next 10 years, up from 10,776 in 2020. The gap for for-sale units also increased, rising to 16,875 units from 13,017 in 2020. In the last five years, the Area Median Income (AMI) in New Hanover County has risen 50%. On its face this sounds positive, but a combination of rising home prices and rising AMI indicates the displacement of lower and middle income households, not economic improvement. The data tell this in a number of ways, including the fact that only 53% of our county’s workforce lives in New Hanover County, which translates to 52,000 daily commuters contributing to road congestion among other challenges. Households moving to our county earn more on average than those moving away, another indicator that our workforce is suffering as a result of our high cost of living, and as a result so are our local businesses and employers. Housing gaps affect all income levels, and future efforts should aim to address the widespread demand. An updated Housing Needs Assessment is expected to be released in 2025. Supporting Jurisdiction City City City City City and County County County The Willows The Sparrow Summerwalk Phase 2 Cape Landing Avenue Flats Haven Place Pierson Pointe 4 FUNDING The New Hanover Community Endowment has been convening a group of community partners including New Hanover County, the City of Wilmington, the Chamber of Commerce, and Cape Fear Housing Coalition to develop a long-term affordable housing funding strategy. New Hanover County offered $3 million in funding for the third year of the Workforce Housing Services Program, funding three housing affordability projects: Avenue Flats, Cape Fear Habitat for Humanity, and Pierson Pointe, totaling 238 for rent and sale affordable units.  The City of Wilmington supported Cape Fear Community Land Trust, the Home Ownership Pool (HOP) Program, HOP Rehabilitation Program, Owner-Occupied Housing Rehab Loan Program, and Rental Rehab Programs. The City invested $4 million in the Avenue Flats project, and awarded Good Shepherd Center $2.11 million in HOME- ARP funds for the production of 32 units of Permanent Supportive Housing. The City of Wilmington’s policy to dedicate one cent of property tax value for affordable housing resulted in $2.3 million in FY25, supporting gap financing and loan programs to leverage federally funded programs.  POLICY The City of Wilmington Planning Department continues to prioritize amending the Land Development Code to decrease barriers to affordability. Wilmington City Council adopted a strategic plan with one of the five key focus areas aiming to “Create a thriving, inclusive and affordable community of neighborhoods.” The WHAC hosted a Developers’ Roundtable in May of 2024 to gain insights on barriers to the development process. 5 Update on 2024 Recommendations The committee’s main charge is to inform and encourage both the city and the county to identify and implement innovative measures that create new affordable housing and that make existing housing more affordable to residents. The following outlines the progress made in each of the five recommendation areas from the 2024 Workforce Housing Advisory Committee Annual Report. DIVERSITY OF HOUSING SUPPLY New Hanover County has continued work on the “Last Frontier” water-sewer infrastructure project. Design work is  complete and infrastructure is anticipated to be activated in early 2026.  Through density incentives, the City of Wilmington approved the Willows, Summerwalk Phase  2, Avenue Flats, and Cape Landing Apartments, totaling 287 affordable units.  PROGRAMS The City of Wilmington administers a HUD Certified Housing Counseling Program, and in FY25, served 240 individuals attending group workshops and 96 individuals participating in one-on-one housing counseling sessions.   New Hanover County’s Gap Rental Assistance Pilot Project has provided help to 125 households, benefiting a total of 252 residents. Additionally, the Teachers Housing Assistance Program has supported 18 families and received recognition from the National Association of Counties for its innovative approach to combining housing support with educational strategies. EDUCATION The New Hanover County Planning and Land Use Department hired a consultant to conduct an updated Housing Needs Assessment to inform housing policy recommendations and the Comprehensive Plan update. The City of Wilmington is launching Wilmington 101, which will include a session on Housing and Neighborhood Services and Planning & Zoning. New Hanover County’s Workforce Housing Program published an Impact Report in January 2025, which included details and data on each of their programs. 6 FUNDING 2024 2025 Develop a housing fund in partnership with the New Hanover Community Endowment leveraging local, federal, and private sources to diverse initiatives such as land acquisition and donation, rolling gap financing, and pre- development costs can be supported. Commit to the continuation of the NHC Workforce Housing Services Program with an annual budget appropriation of no less than $5 million annually beginning in 2027 before the end of the initial 5-year, $15 million commitment. POLICY 2024 2025 Include the NC Housing Coalition’s annual legislative agenda as part of City and County legislative work, focusing on efforts to restore and increase the state Housing Trust Fund. Require Source of Income protections for rental projects that receive funding support and/or rezoning approval from the City or County. Reduce parking restrictions and allow outside parking analysis on a project-by-project basis; offer parking reductions in exchange for a commitment to a percentage of affordable units. 7 2025 RECOMMENDATIONS Safe and affordable housing is the cornerstone for both individual well-being and the success of an entire community. The recommendations outlined below aim to build on existing successful programs implemented by the City of Wilmington and New Hanover County while also suggesting new and innovative approaches to make housing more affordable. Recommendations not addressed from 2024 are relisted here as continued goals. DIVERSITY OF HOUSING SUPPLY 2024 2025 Hold a joint City-County elected board roundtable discussion with both PlanningBoards and the development community to brainstorm strategies to remove barriers that preclude housing diversity and affordability in residential projects. Further decrease lot size required for duplexes, triplexes, and quadruplexes to encourage infill development, particularly in the greater downtown area; use GIS to identify infill lots prime for upzoning. Utilize the Land Trust model to increase economic diversity in neighborhoods. Increase funding and land allocations to developers and organizations building multifamily and/or supportive housing for households exiting homelessness. PROGRAMS 2024 2025 Continue funding successful housing stability programs that originated in federal relief packages with local dollars, such as the ARP-funded workforce gap rental assistance program. Expand the City’s successful Homeownership Pool (HOP) Program to the entirety of New Hanover County. Ensure all eligible homeowners are informed about the Tax Relief program and utilize existing County resources to assist with applications. Invest in a full time staff member to offer tenant and landlord education and to investigate Fair Housing complaints. 8 EDUCATION 2024 2025 Develop a housing landing page dedicated to local affordable housing services and issues. Encourage each City Council and County Commission member to attend at least one WHAC meeting each year. Launch an education campaign to inform residents about affordable housing services and issues. Hold a one-day Affordable Housing Summit as a collaborative effort between the County, City, WHAC, builders, developers, the New Hanover Community Endowment, and Cape Fear Housing Coalition. 9 Investments from New Hanover County and City of Wilmington have made projects such as Haven Place, Canopy Pointe, and Estrella Landing possible. 10 Appendix 11 2025-2026 POLICY AGENDA During the 2025 and 2026 NC Legislative Sessions, the Coalition will focus advocacyon five key areas. Funding for Housing Increase housing investments to meet the scale of the need Disaster Recovery Meet immediate recovery needs and prepare for future disasters Statewide Coordination Strengthen our state housing infrastructure and improve coordination Protection for Renters and Homeowners Improve access to quality, affordable housing and prevent displacement Land Use and Development Inform local policies and support equitable land use reform Policy Platform Four core priorities inform our policy agenda for each legislative session. Advocate for reliable, dedicated, and coordinated public resources that meet the scale of the housing need. Support housing policies and resources that keep families in their homes and allows communities to thrive. Promote equitable access to housing and opportunity that reckons with our long history of racist housing policies and practices. Ensure that local policies facilitate an adequate supply of quality housing accessible across a community’s income spectrum. NCHOUSING.ORG