Interest money

City of Charlotte plans to spend more money to lock down affordable housing developments

CHARLOTTE, NC (WBTV) — While the fight for affordable housing isn’t a new issue in Charlotte, rising costs and a potential recession are preventing developers from building with the money originally allocated to them.

Costs have jumped recently, and with a potential recession looming, many developers of already approved city-funded projects say they now need more money to move forward.

Monday evening, Charlotte City Council considered additional funding for such affordable housing developments.

Although these projects have already been approved, at least 11 developments are now asking for a total of $32 million to combat rising construction and interest costs. Additionally, with only $6 million remaining in the current housing trust fund, the council had to consider tapping into other funds as well.

If board members decide to invest a significant additional amount in these projects, that leaves even less funds for new projects.

“Supply chain challenges, inflation, everything that started during COVID but more recently has just been amplified and intensified,” said Shawn Heath, director of housing and neighborhood services. “And so, the big economic issues that people are now concerned about are having an impact at the local level on these affordable housing projects.”

The council is expected to vote on the matter on Nov. 28.

Related: ‘We’re one step closer’: Charlotte City Council allocates $8 million to preserve affordable housing