2.28.17 Meeting NotesCity of Wilmington/New Hanover County
Workforce /Affordable Housing Ad hoc Committee
February 28, 2017
Meeting Notes
Present: Robert Rosenberg, Steve Spain, Dave Spetrino, Jody Wainio, Will Bland, Katrina
Redmon, Gloria Green, Linda Smith, Paul D'Angleo, Phil Humphrey, Tilghman Herring
Staff — Suzanne Rogers, City of Wilmington; Jennifer Rigby, New Hanover County (NHC)
Julia Moeller, NCH; Rebekah Roth, NHC; Rachel LaCoe, COW
Absent: Elizabeth Dodson, Katrina Knight; Resigned: David Barnes, Carlos Braxton
Jody Waino, Chair, called the meeting to order and welcomed all.
Suzanne Rogers reviewed funding mechanism utilized by other jurisdictions to support affordable
housing.
Jody referred to the brainstorm list from 12/13/16 meeting and the group discussed the following.
Discussion Topic: What funding mechanism(s) are most appropriate to accomplish the objectives
set forth by this Committee? How should funds be used?
The Committee recommends the City and County establish a Housing Trust Fund (HTF) to receive
public funding to support the production, preservation and access to housing that is affordable for
families and individuals experiencing cost burden and /or a limited supply of appropriate safe,
decent, housing in New Hanover County and the City of Wilmington.
Furthermore, several options are available to fund the HTF including, but not limited to, general
fund appropriation, designated property tax, general obligation bond, and revenues from sale of
real property. Taking this into consideration the committee recommends:
• Designate a penny of property tax revenue for the HTF, "penny for housing" ;
• Invest 10% of proceeds from the sale of City or County Surplus Real Property to the HTF;
Existing and new housing programs were identified to receive funding through the HTF. The
committee recommends the HTF be used to:
• Increase funding for the Home Ownership Program (HOP) for workforce housing loans to
eligible borrowers earning >80% -120% Area Median Income (AMI);
• Expand the HOP workforce loans ( >80 -120% AMI) to the unincorporated County
(dependent upon NHC funding);
• Provide Low Interest Loans for developers producing housing that is affordable;
• Provide Down - payment Assistance funding;
• Create a Security Deposit Guarantee for landlords, similar to Rapid Rehousing Program
model;
• Provide funds for Dilapidated Housing Rehabilitation, including the City's Owner -
Occupied Housing Rehabilitation Program; and
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Fund an on -going public awareness campaign efforts to continue to build awareness and
support for housing that is affordable throughout the community.
The committee also recognizes other strategies and sources of revenue that should be supported to
foster the production of housing that is affordable for households with incomes below 80 percent
AML To that end the committee recommends:
• The Permanent Housing Advisory Board research the use of Limited Participation Bonds
to support development of affordable housing. Winston Salem has successfully utilized
this bond.
• City Council and County Commission should encourage and support, when appropriate,
the use of Affordable Housing Bonds issued by the Wilmington Housing Authority as part
of the 4% Low Income Housing Tax Credit program.
• Develop an incentive program using density bonuses in return for including affordable
units in a development.
• City and County owned property identified for redevelopment should include an affordable
housing requirement and an option for payment in -lieu to the HTF if the requirement is not
met.
Prepared by: Julia Moeller, Rebecca Roth, Jennifer Rigby and Suzanne Rogers
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• Low Income housing Tax Credit (LIHTCs) For the Lofts $12,000,000
• CDBG- Section 108 Loan $8,800,000
• Home Investment Partnership Fund $5,750,000
• Neighborhood Stabilization Program III Fund $500,000
• McCormack Barron Salazar equity $3,000,000
• Private Mortgages for 25 below 80% AMI houses at the Bungalows $2,500,000
• Private equity and/or market rate mortgages for over 80% AMI homes $4,025,000
• City of Durham below 80% AMI secondary & forgivable mortgages $1,000,000
• Purchasers' down payment from savings /NCHFA grants $216,000
• Duke University Incentives (to date) $10,000
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