City recommends 9 projects for Housing Trust Fund but rejects Brookhill pitch
Nine affordable housing developments totaling 1,349 units could get $14.9 million from the Housing Trust Fund under a plan Charlotte officials recommended to City Council.
But the biggest debate Monday involved the one proposal not recommended for city and private funds: the Brookhill redevelopment in South End.
Pam Wideman, Charlotte’s housing and neighborhood services director, said city staff and the nonprofit that helps vet these deals aren’t recommending Brookhill primarily because of the amount of money developers requested.
Lookout Housing Ventures sought $4.5 million in loans from the housing trust fund and $10 million in loans from the private Charlotte Housing Opportunity Investment Fund, far more than other affordable housing developments have received.
It also asked for $5.3 million grant from the city for infrastructure improvements.
Brookhill Village, at South Tryon and Remount Road, is among the last affordable housing in South End, though the complex has been plagued with legal fights and has fallen into disrepair. A settlement with the federal government over longstanding issues with violent crime and drugs called for owners to substantially renovate the property.
Plans call for a mixed-income development with 324 units, of which 164 will be affordable to households earning up to 80% of area median income — $63,200 for a family of four.
Without requested public and private investment, “multiple financial and legal forces and deadlines will drive market-rate development” and displace current residents, developers have said. Nearly 300 people live in the complex now, according to developers.
Displacement concerns
Several council members said they want to continuing talks with developers, warning of losing affordable housing close to uptown and near transit when there are already few options in South End.
“Staff is seemingly suggesting that we displace these residents and completely gentrify Brookhill, a neighborhood with historic value,” Council member Braxton Winston said. “Is that what we would seriously recommend for this council?”
Wideman said the city and United Way of Central Carolinas are partnering to help current residents move to more stable housing.
“I think the best case scenario is we find a way for them to continue to live in a new and improved Brookhill .... We don’t want this to turn into a Lake Arbor situation,” council member Larken Egleston said, referring to the west Charlotte apartments where residents were ousted last year when owners announced plans to renovate after years of substandard conditions and code violations.
Officials also questioned the developer’s ability to secure other necessary financing. The redevelopment has several legal and financial complications, including separate ownership of the buildings and the land beneath them that prevented qualifying for low-income tax credits.
“The proposed team has never successfully managed a comparable type of development,” Wideman said.
New Brookhill is led by Raleigh-area developer Tom Hendrickson and Pat Garrett, former president of Charlotte-Mecklenburg Housing Partnership.
Nonprofit South Tryon Community Development Corp., led by Ray McKinnon, is also involved. McKinnon is pastor of South Tryon United Methodist Church near Brookhill and a board member of Inlivian, formerly the Charlotte Housing Authority.
Denise Scott, executive vice president of programs for Local Initiatives Support Corporation, called the deal “not viable” in its current form. LISC, in addition to helping decide which deals should get funds for affordable housing, also manages the private Charlotte Housing Opportunity Investment Fund.
Late Monday developers acknowledged the decision not to recommend the project.
“The people of Brookhill deserve safe, decent, affordable housing,” the statement read. “Meeting the affordable housing challenge in Charlotte will require creative solutions and strong leadership. The New Brookhill development team is committed to doing our part to work with City leaders and community partners over the next few weeks to find timely ways to support affordable housing in New Brookhill.”
Recommended developments
City staff and LISC did recommend seven new developments, one renovation of existing affordable units, and the construction of 194 shelter beds for council’s approval.
In the recommended projects, 34% of the units are for households earning 30% AMI, or $23,700 for a family of four. Units priced for residents with the lowest incomes represent the greatest need in Charlotte’s affordable housing crisis, city leaders have said.
The nine recommended projects are:
- Dillehay Courts Phase I, developed by Horizon Development Properties, a subsidiary of Inlivian, seeks $2 million from the housing trust fund to build 143 units. Rents range $569-$1,432
- Evoke Living at Arrowood, developed by Horizon and Crosland, seeks $2 million from the trust fund to build 168 units. Rents range $375-$1,129.
- Johnston Oehler Seniors, developed by Charlotte-Mecklenburg Housing Partnership, seeks $2 million from the trust fund to build 140 units. Rents range $376-$1,300.
- The Park Seniors, developed by Laurel Street Residential, seeks $1.95 million from the trust fund and $4.3 million from the private fund to build 80 units. Rents range $385-$1,125.
- Vibrant Eastway Park, developed by Eastway Harmony Housing, seeks $2 million from the trust fund. Rents range $378-$978.
- Connelly Creek Apartments, developed by the Charlotte-Mecklenburg Housing Partnership, seeks $2 million from the trust fund, to build 78 units. Rents range $376-$1,390.
- Mineral Springs Commons, developed by Wesley Community Development Corporation, seeks $803,000 from the trust fund to build 73 units. Rents range $384-$1,343.
- The Statesville Avenue location of the Men’s Shelter of Charlotte seeks $800,000 from the trust fund for 194 shelter beds.
- Windsor Park Apartments, developed by Windsor Park NOAH, seeks $1.4 million from the trust fund, $4 million from a city fund for naturally occurring affordable housing and $600,000 in private funds to renovate 341 units. Rents range $350-$1,150.
This is the second round of projects funded by the $50 million in bonds Charlotte voters approved in 2018 for the city’s Housing Trust Fund to build or renovate affordable apartments.
Council members are expected to vote on the nine developments April 27.
This work was made possible in part by grant funding from Report for America/GroundTruth Project and the Foundation For The Carolinas.
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