City Council is scheduled to vote on a proposal today that would give financial subsidies to a developer pledging to preserve affordable housing in east Charlotte.
The two-part proposal would:
- Allocate $8 million in federal covid relief dollars to Central NOAH. The company would use that money as a subsidy to buy and renovate Peppertree Apartments on Central Avenue.
- Provide the company with a 20-year tax subsidy in exchange for creating 44 additional units affordable to residents earning no more than 30% of the area’s median income, or AMI (currently $28,250 for a family of four).
Why it matters: If approved, the deal would preserve 292 units of affordable housing for the next 20 year, according to a city document.
By preserving units that are currently affordable, city officials hope that fewer new units will have to be built and subsidized.
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The 1- and 2-bedroom units at Peppertree would rent for $390 a month up to $1,295 a month, according to city documents prepared for council members.
All of the units in the apartment complex would be considered affordable for residents earning up to 80% of AMI (currently $75,350 for a family of four).
Market-based rental rates for similar units in that part of east Charlotte range from $1,150 to $1,750, according to the city documents.
The developer, Central NOAH, is an affiliate of Ascent Real Estate Capital, a Charlotte company that invests in multi-family and commercial properties. It currently has more than $300 million in assets under management, according to its website.
In addition to the city subsidy, the company has requested an additional $4 million, plus property tax reimbursements, from Mecklenburg County. The Board of County Commissioners is scheduled to consider that request on Sept. 20.
Also on council’s Monday agenda:
- A proposal to authorize the city to accept $1,000,000 in federal funds to expand the Alternatives to Violence Program beyond Beatties Ford Road into other parts of the city.
- A Charlotte-Mecklenburg Police Department update on the SAFE Charlotte initiatives.
Council meetings start at 5 p.m. in the Government Center. You may also watch it live on the city’s YouTube channel.