Charlotte City Council Votes for Rental Subsidy Program
On Monday, the Charlotte City Council unanimously voted "yes" to a rental subsidy program for low-income families. The NOAH Rental Subsidy Program allows owners of existing developments (or "naturally occurring affordable housing") to apply for a monthly subsidy to cover the difference between the cost of rent and what a qualifying family is able to pay.
In reporting in QCityMetro.com, the city's director of housing and neighborhood services points out that this solution is less expensive and faster to deliver than new construction, and it avoids displacement.
The strategy arose from housing advocates' concession that the city can't build affordable units at a pace to keep up with growing need, while population, construction costs, and rent prices continue to rise.
Here's how it works:
To participate in the program, NOAH owners agree to affordability restrictions for 20 years. This limits rent growth and makes units available to residents at specific income levels.
- Existing residents are unaffected. Income qualifications would apply to new residents who are phased in through attrition.
- A third party would administer the funds, which would be drawn as subsidies are earned.
- The city would commit funding to the program through an annual property tax reimbursement to the property owner lasting a minimum of 20 years.
- The subsidy would not exceed the city’s portion of an owner’s property tax bill.
- The program would emphasize NOAHs in the city’s “opportunity zones.”
- Buildings must be at least 15 years-old with a history of being well maintained and on the property tax rolls.
- Owners must set aside at least 10 percent of their units for household earning no more than 30% of AMI.
Read more from the QCityMetro article HERE