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Status Indicator: In Progress | On Hold | Complete/Ongoing

Initiative: 3.22 Advance rental housing programs

Connected, Engaged, & Inclusive Communities

Description

The Community Development Department is invested in advancing rental housing programs for low- to moderate-income households. This initiative is nested within the Forever Home, Durham plan of building 1,600 new affordable rental homes and preserving 800 affordable rental homes. We manage the following programs in support of this initiative: 1) Forever Home, Durham Projects, 2) American Rescue Plan Act (ARPA) Affordable Housing Projects, and 3) the HOME Investment Partnerships Program - American Rescue Plan (HOME-ARP) funded project.

Key Measures & Data Analysis

• The Department is managing numerous programs within the "advance rental housing 
programs" initiative. The chart depicts the rental units created goal within the Forever 
Home, Durham plan. There are 3 categories: 1) number of units completed, 2) number of 
units under contract, and 3) number of units in the pipeline (not yet under contract with 
developer). 
• Our goal is to create 1,600 new rental units. We anticipate we will have a surplus of 234
additional units created, for a total of 1,834 new rental units. 
• Due to volatile market conditions, paired with increased construction and development 
costs, we have experienced unexpected delays in moving these rental housing projects 
into an under contract status. 

Rental Units Created

Why is it important?

The Community Development Department believes all residents deserve access to decent and suitable affordable housing that meets their needs. We invest in various projects that create and preserve affordable rental housing for low- to moderate-income households within the City of Durham.

What have we been doing?

Through this initiative, we have been continuing to manage the following projects:

1) Forever Home, Durham Projects 
• The $160 million Forever Home, Durham plan spans from 2019-2025. The goals within the plan that are relevant to this initiative include creating 1,600 new rental units and preserving 800 rental units. 
         • Within the goal of creating 1,600 new rental units, we have: completed 2 projects, have 6 projects under contract, and have 7 projects in the pipeline
         • Within the goal of preserving 800 rental units, we have: completed 2 projects, have 2 projects under contract, and have 1 project in the pipeline
• We are diligently working to get the projects that are currently in the pipeline to an under contract status. Due to volatile market conditions, paired with increased construction and development costs, we have experienced unexpected delays in moving these rental housing projects into an under contract status. 
• For the latest information about the Forever Home, Durham plan, please visit: https://www.durhamnc.gov/4593/Forever-Home-Durham

2) American Rescue Plan Act (ARPA) Affordable Housing Projects 
• The City of Durham and Durham County are using a portion of their American Rescue Plan allocation to fund the critical need for affordable housing. Through an Interlocal Cooperation Agreement (ILA), Durham County conveyed $13.5 million to the City of Durham, which the City matched, for a total investment of $27 million to assist in developing new affordable housing units in Durham. The funds will serve households earning less than 80% of the Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development (HUD).
• The City of Durham hosted a competitive application process and made selections of the affordable housing projects they anticipate funding. 
• For more information about the City of Durham's American Rescue Plan Act (ARPA) funding, please visit: https://www.durhamnc.gov/4529/American-Rescue-Plan 

3) HOME Investment Partnerships Program - American Rescue Plan (HOME-ARP) 
• The City of Durham was awarded approximately $4.3 million in HOME-ARP funding. A requirement of the funding was to develop an Allocation Plan that describes how we will distribute funding, including how the funds will address the needs of qualifying populations. The City of Durham's HOME-ARP Allocation Plan was approved by the U.S. Department of Housing and Urban Development (HUD) in Spring 2023. Our Allocation Plan states that we will allocate approximately $4.2 million towards the development of 25 new affordable rental units and $150,000 towards administrative and planning activities. The new rental units will be prioritized for individuals and/or families experiencing homelessness.

What's next?

In the coming months, we will work towards the following: 

1) Forever Home, Durham Projects 
• The Department will continue to support with the completion of the projects that are currently under contract and prioritizing moving along the projects that are in an in the pipeline status. 

2) American Rescue Plan Act (ARPA) Affordable Housing Projects 
• The Department will continue working through the process of executing contracts for the selected affordable housing projects by the commitment deadline of December 31, 2024. 

3) HOME Investment Partnerships Program - American Rescue Plan (HOME-ARP) 
• The Department will be releasing a competitive Request for Proposals (RFP) for the creation of the 25 rental units by September 2024. 

Budget and Management Services Department
Office of Performance and Innovation
Strategy and Performance Division