City of Charlotte considers spending more money to lock in affordable housing developments
With rising costs, several already-approved projects requested additional funds to make sure they can build.
CHARLOTTE, N.C. (WBTV) - While the fight for affordable housing is not a new issue in Charlotte, rising costs and a potential recession is making developers unable to build with the money they were initially allocated.
Costs have jumped recently, and with a potential recession looming, many developers of already-approved city-funded projects say that they now need more money to move forward.
On Monday night, Charlotte City Council considered extra funding for such affordable housing developments.
While these projects have already been given the thumbs up, at least 11 developments are now requesting a total of $32 million to combat rising construction and interest costs. Plus, with only $6 million left in the current Housing Trust Fund, the council had to consider dipping into other funds as well.
If council members opt to invest an additional significant amount in these projects, it leaves even less funding for new projects.
“Supply chain challenges, inflation, all of the things that started during COVID, but then more recently, just magnified and intensified,” Shawn Heath, housing and neighborhood services director, said. “And so the big economic things that people are now concerned about are having an impact at the local angle 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 allots $8 million to preserve affordable housing
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