Q&A on Affordable Housing

Q: What’s the difference between subsidized housing for low-income residents and generally affordable housing for middle-income residents?

Jane Harrison: Subsidies are used for income-restricted housing, typically for those earning 30-80% of the area median income (AMI). Median household income in Raleigh is ~$75,000. The market doesn’t naturally provide enough affordable housing at or below these levels, so the City steps in to help. We provide gap financing to non-profit affordable housing developers to build subsidized housing and stabilize rents.

Affordable housing for middle-income residents is related to supply—having enough different housing types on the market helps meet demand and stabilize prices. For instance, whether folks need a house with a yard, an apartment close to a bus line, or a downsized home for retirement, we need to ensure these options are available.

Q: You mentioned the City has some levers to pull. Can you talk about how City Council can increase the availability of both subsidized and generally affordable housing?

Jane Harrison: One of our best tools is buying land to create income-restricted housing and keeping it affordable into perpetuity. For example, we bought the DMV site on New Bern Avenue for $20 million to develop affordable housing. We also provide subsidies to non-profit housing developers like DHIC or CASA. Moreover, in rezoning cases, we often negotiate public benefits, including affordable housing contributions from developers. For example I worked on a rezoning case on Hillsborough St near NC State’s campus where 5% of the units will be affordable at 60% AMI for 20 years. We could have up to 21 affordable units in that private, market-rate development.

Q: How do partnerships between developers and the City work to include affordable housing?

Jane Harrison: We have incentives for developers, like allowing increased building heights if they provide affordable housing. Some developers have embraced these incentives to build affordable units outright. We also work through public-private partnerships, where developers might offer affordable housing in exchange for land or other benefits from the city. In rezoning cases, council members and developers discuss what public benefits are appropriate, often including affordable housing.

Q: What about keeping people in their existing affordable housing?

Jane Harrison: That’s a big focus for us. We have programs like no-interest loans for low-income homeowners to make necessary repairs, helping them maintain their homes. There is also down payment assistance. Unfortunately, we have fewer tools for renters due to state laws. Rent control, for example, isn’t allowed in North Carolina. This leaves renters vulnerable to rising rents and property investments that turn affordable homes into luxury units.

Q: Can you tell us about any new programs aimed at helping those experiencing homelessness?

Jane Harrison: We’ve just launched a rental voucher program to get people experiencing homelessness into market-rate apartments. This approach, inspired by successful programs in cities like Houston, aims to provide stable housing, allowing individuals and families to get back on their feet. Our initial funding is $5 million, and we expect to expand this as we refine the program.

Q: With so many changes in Raleigh, particularly zoning and rezoning, how does this affect affordable housing?

Jane Harrison: Rezoning often leads to market-rate housing, which increases supply but is still too expensive for many. That’s why we push for affordable housing contributions in new developments. Increasing overall housing supply can help stabilize prices, but we still need targeted efforts for true affordability. The Raleigh Housing Authority is also working on redeveloping properties to increase density and include more affordable units.

Q: Any last-minute resources for people to learn more about these programs?

Jane Harrison: I urge everyone to see themselves as part of this movement for housing affordability. Check out the state’s low-income housing tax credit program and reach out to your state legislators and Congressional reps to advocate for more funding. You can also watch the City’s affordable housing summit to get up to speed on our approach. City Council is committed to finding new opportunities for affordable housing, so stay informed and involved.