Funds for Housing Developers
Joint Venture Rental Program
Goal: To provide below market interest rate loans to developers of affordable rental housing. Projects may be either new construction or rehabilitation. These loans are generally made to developers who are applying for an allocation of Low Income Housing Tax Credits through the North Carolina Housing Finance Agency.
Location: Rental units must be located within the city limits of Raleigh and must meet the City’s Scattered Site Policy.
Maximum Units Per Project: New construction projects are limited to a maximum of 50 units, except in Priority 1 or 2 areas, which are limited to 80 units.
Eligibility: Nonprofit and for profit housing developers who are willing to rent to persons and families whose income are at or below 60% of the Wake County median income.
Source of Funds: Raleigh Housing Bonds and HOME funds.
Term: The interest rate, term, and conditions of the loan are determined on a case by case basis. A financial analysis is done on the project to determine the City's amount of participation.
Lien: Generally a first or second position.
Maximum Loan: Determined on a case by case basis and the availability of funds.
Fees: $100 nonrefundable application fee and, if approved, an origination fee of 1% of the loan amount.
Application: This is by competitive proposal. Proposals are requested in early fall of each year. Please contact Community Development to be added to our mailing list.
Housing Rehabilitation
Experienced General Contractors Needed: The Community Development Department renovates more than 40 private residences every year under its HUD-funded Housing Rehab Program. Specifications are written by professionals. Bids are formally solicited and reviewed. Contracts average about $27,000 and work typical includes replacing roofing, windows and doors; upgrading electrical, plumbing and HVAC systems; and new paint, carpet and cabinetry. Contractors are not required to have North Carolina General Contractor's Licenses, but must have at least 3 years experience and carry general liability and workers' comp insurance. Payments are available seven business days after the draw request is approved.
Contact: Community Development Department, City of Raleigh, (919) 857-4330
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