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 in a part of town where rents and real estate prices are rising.
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.