Naturally Occurring Affordable Housing Acquisition, Rehabilitation, and Subsidy Program
Through the Pilot Naturally Occurring Affordable Housing (NOAH) Subsidy Program, the City of Charlotte helps developers acquire and preserve NOAH properties by providing them with an annual rental subsidy for a minimum of 20 years — or the duration of a deed restriction — at an amount not to exceed the city’s annual property tax bill.
After the expiration of the 20-year deed restriction, investors in the HIF agreed to allocate 60 percent of funds from future sales of properties acquired through the HIF to a separate fund dedicated to preserving long-term affordability. The subsidy is then used to cover the difference between what an LMI household can afford and the rent on the unit.
Sources
- https://www.georgetownclimate.org/files/Louisiana%20Regional%20Vision/Greauxing_Resilience_Charlotte_NC.pdf
- https://www.charlottenc.gov/CS-Prep/City-News/Charlotte-City-Council-Approves-8M-Housing-Trust-Fund-Allocation-for-Naturally-Occurring-Affordable-Housing-Development
Last updated: Nov. 8, 2024
Program details
City: Charlotte
Program geography: City
Entities involved: City Government
Market Category: High Cost Market Resources
Tool Category: Tools for Mission Driven Owners
Tool Description: Rental Subsidy
Year started: 2020
Building type: 100+ units
Target tenants: Up to 80% AMI with additional affordability requirements at 30% AMI, at or below 80% AMI
Affordability restrictions: Yes. Properties must be at least 15 years old, well-maintained, and listed on municipal property tax rolls. In addition to focusing on areas that are at specific risk of conversion of higher rents, developers must also demonstrate a strong financial, management, and maintenance history Deed restriction minimum 20 years
Funding sources: City Funding