Charlotte approves $20M to cover cost overruns for affordable housing projects

CHARLOTTE — Charlotte City councilmembers approved nearly $20 million to cover cost overruns for eight previously approved affordable housing projects. The funds will come from COVID-19 relief dollars and the voter-approved Housing Trust Fund.

Leaders already spent millions on these eight projects. Developers of these projects asked for more funding to cover “extraordinary market conditions.” The approval means more than 700 affordable housing units will be able to be built.

“I know we do not have the money to solve every issue that we have in front of us, but I feel like the most responsible thing we can do with what we have to allocate, is to make an impact where we can,” said District 5 Councilwoman Marjorie Molina.

Three other previously approved projects with funding gaps did not receive city funding. The city says it will keep talking to the developers, who may come back later.

At-Large Councilwoman Dimple Ajmera says the additional funding shows how important building affordable housing is to Charlotte but warns this issue will keep coming up.

“We are talking about cost escalation for the last two or three weeks now,” said Ajmera. “I see this is not going to go away.”

District 6 Councilman Tariq Bokhari says the city needs to rethink its affordable housing strategy. He said the city continues to throw large amounts of money at the priority with little return.

“We have to get more strategic in what we do and that means taking hard lines,” he said. “We want to solve for and we know the current approach isn’t doing anything and this is one of them.”

In exchange for the additional funding, the developers are extending the amount of time they are committed to keeping the homes affordable.

Approved projects:

Fairhaven Glen

8329 Nations Ford Road

140 Units

$1.15 million

Ovata at Reedy Creek

9729 Newell Hickory Grove Road

78 Units

$2 million

Galloway Crossing

8300 E. W.T. Harris Blvd.

78 Units

$1 million

Ballantyne Seniors

15201 Ballancroft Parkway

82 Units

$1.4 million

Evoke Living @ Morris Field

3628 Morris Field Drive

132 Units

$5.5 million

Bishop Madison Homes

1947 Bishop Madison Lane

9 Units

$250,000

Grounds for Change

3420 Park Road

104 Units

$4.5 million

South Village Apartments

3655 Dewitt Lane

82 Units

$4.7 million

Unfunded projects

The River District

8325 Dixie River Road

124 Units

$6.15 million

Lakewood Apartments

2732 Watson Dr, Charlotte, NC 28208

36 Units

$800,000

Easter Home

1615 E. Fifth St.

21 Units

$1.9 million

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