1. Rural Housing Resources: Public-Private Partnerships (P3s) for Housing
NC Affordable Housing Conference
Rural Housing Resources: Public-Private Partnerships (P3s) for Housing

2. Development Finance Initiative
The Development Finance Initiative (DFI) is a program of UNC-Chapel Hill School of Government and collaborates with communities in NC to attract private investment for transformative projects by providing specialized finance and real estate development expertise.
49% rural

3. Hurricane Matthew Impact and State’s Goals
Focusing on resiliency, NC sought solutions to attract more affordable rental housing development in community but outside areas vulnerable to flooding.
Primarily low-income
Rural areas
Renters with limited FEMA support
Source: Flood Risk Information System; 2017 ACS 5-Year

4. Rural Development Challenges and Solutions
Limited land viable for housing development
Local government and community support needed
Shift from recovery to resiliency challenging for communities facing repeated natural disasters
Understand need but lack capacity
Stagnant incomes and declining populations
Private market not delivering enough new units
Lack of multifamily development in recent years
 Partner with local gov’t to identify land
 Identify building program to meet public interests and market
 Support local gov’t in community engagement
 Identify subsidy
 Identify development partner

5. Public-Private Partnerships (P3s) for Housing
P3s for Housing process:
Connect with local government partners
Identify suitable development sites in Hurricane Matthew-impacted communities
Conduct development feasibility analysis
Solicit private development partner
State of NC engaged DFI to assist with attracting private investment for the development of affordable housing for low- and/or moderate-income households in hurricane-impacted communities, prioritizing households displaced by Hurricane Matthew.

6. DFI Feasibility Analysis
Site
Analysis
Public
Interests
Feasible Project
Market
Analysis
Financial
Analysis

7. Case Study: Lumberton, NC
HUD Area Median Income (AMI) is $43,800 for a family of 4.
Affordable rent for 2-person, low-income household estimated at $525.
Prior to Hurricane Matthew:
Est. 6,000 low-income renter households in substandard and/or overcrowded housing, and/or were cost-burdened.
Population steadily in decline, with some growth among seniors
Hurricane Matthew displaced nearly 500 very low-income households.
Source:
USDA eligible

8. Identify Viable Land Clear path to site control
Existing connection to utilities
Outside 100- and 500-year flood zones
Development of site meets local public interests
Meets LIHTC requirements (i.e. access to amenities, transportation, etc.)

9. Identify Feasible Building Program
Targeting elderly households (55+) earning 60% AMI
Accommodate up to 66 apartments – mix of single-story and two-story
Based on input from council, staff and community meetings

10. Financing Source: CDBG–Disaster Recovery
HUD flexible grants to help cities, counties, and states recover from presidentially declared disasters, especially in low-income areas.
Intended to rebuild the affected areas and provide crucial seed money to start the recovery process.
Governed by HUD federal funding requirements.
Come several years after the disaster.

11. Identify Capital Funds
Gap
Gap
Loan
Explain tax credits and LHC privately-initiated

12. Identify Development Partner
City selected partner experienced with 4% LIHTC and CDBG.
Preliminary application submitted within month of partner selection.
Expedited

13. Next Steps Lumberton and Development Partner proceed to development
Rocky Mount solicitation in pipeline
State focused on identifying affordable housing opportunities in all Hurricane Matthew-impacted communities

14. Sarah Odio, Project Manager odio@sog.unc.edu www.dfi.sog.unc.edu