Oakhill Apartments, off Beaty Street. (David Boraks photo)

The Town Board at a special meeting Tuesday night approved two items that eventually could lead to the renovation or construction of 104 units of affordable housing in town. Both actions – one a $90,000 investment and the other a land donation worth $615,000 – were required so that affordable housing developers could meet a Jan. 10 application deadline to qualify for tax credits for  two projects. The board’s votes affect:

• A proposed renovation of the Oakhill Apartments, at 835 Beaty St., and,
• A proposal to build a collection of affordable rental units at several locations around town: in the Bailey Springs subdivision off Davidson-Concord Road, along Jetton Street, and on Mocks Circle and Mocks Road on Davidson’s West Side. The latter properties are being proposed under a single tax-credit application by Davidson Housing Coalition and Charlotte-based nonprofit Affordable Housing Group of North Carolina.

Tax credits give investors an incentive to back affordable housing development. “Tax credits are the single most (important) way of funding affordable housing in this country,” said Kathy Stilwell, the deputy director of Affordable Housing Group, who answered questions at Tuesday’s meeting.

While other methods are also possible, Ms. Stilwell, said, tax credits are the preferred method.

Davidson is one of the few towns in North Carolina to require developers to set aside land or contribute funds for affordable housing. Town Board members Laurie Venzon and Evan Webster noted after Tuesday’s meeting that the board’s actions amounted to an affordable housing commitment by the town worth nearly $1 million.

OAKHILL RENOVATION

The board approved investing an additional $90,000 in the Oakhill Apartments, which are owned by a Richmond, Va.-based nonprofit called Community Housing Partners Corp. The money would come from the town’s affordable housing fund, which consists of money developers have paid in recent years in lieu of developing affordable housing.

Two years ago, Davidson approved a loan of $225,000 to help CHP buy the property for $3.2 million. If the tax credits are approved, the town’s commitment would total $315,000, and would take the form of a grant. If tax credits are not approved, it likely would become a loan, Town Manager Leamon Brice said.

Community Housing Partners buys and renovates residential properties with a goal of preserving affordable housing. Oakhill Apartments, at 835 Beaty St., currently have 73 one- and two-bedroom units. If the tax credit application is approved this summer, the company plans to renovate the complex into 63 units.

The additional town investment was needed in order to help the project meet a minimum public investment required to qualify for tax credits through the North Carolina Housing Finance Agency.

BAILEY SPRINGS/WEST SIDE HOUSING

The board also approved donating 2.24 acres of land in the Bailey Springs subdivision – valued at $615,000 – to a proposed $5.6 million affordable housing initiative being developed by Davidson Housing Coaltion and Affordable Housing Group.

The developer of Bailey Springs has pledged to give the town the land to satisfy the affordable housing ordinance. Under a master-plan for the development approved in 2004, the land must be used for affordable housing.

The housing coalition and AHG already have assembled land in the other locations, and they’ve chosen to submit a single tax credit application for the projects. The proposal calls for a total of 41 affordable rental units, broken down as follows:

• 24 at Bailey Springs
• 6 on Jetton Street, near the award-winning Bungalows affordable townhomes project
• 2 on Mock Circle
• 9 on Mock Road

The Town Board’s agreement to donate the land is contingent on approval of the tax credits.

State review of tax credit applications will produce a list of finalists in March and winners of the tax credits will be announced in August.

Both the Oakhill and housing coalition/AHG projects would be subject to long-term restrictions as part of the tax credit deals. They would be required to maintain affordable rents at the apartments for 30 years. To qualify for the units, renters would have to meet income limits.

“They will have to be qualified,” Samantha Brown, Housing Development Officer at CHP said via telephone during Tuesday’s meeting. Although Oakhill is not currently an officially qualifying affordable housing project, of its 73 apartments, only 11 are currently rented to families or individuals with incomes above 60 percent of the area median income, she said.

So most families living there today would be eligible for the newly renovated affordable units. In response to a question from Commissioner Venzon, Ms. Brown said approval of tax credits could mean some families would be forced to leave. But Ms. Brown said CHP would offer unspecified incentive payments to those tenants.

RELATED COVERAGE

May 8, 2007, “Town agrees to help Oakhill Apartments purchase.”

DOCUMENTS

Oct. 12, 2004, Davidson Town Board minutes, noting approval of the master plan for Davidson Springs, known at the time as the “Rusak Property.” (Adobe PDF, requires free Adobe Reader software) CLICK HERE>

Bailey Springs Master Plan, as approved. (PDF) CLICK HERE>