City Council Takes Step Toward Downtown Affordable Housing

City Council approved the next major financing step for Moore Square Apartments. We are now one step closer to having more affordable apartments right in the heart of downtown.

Moore Square Apartments will add 160 new affordable rental homes downtown, giving more people the chance to live close to jobs, schools, parks, and public transportation. This project helps make downtown living a reality for working families, and individuals who want to be part of the City's vibrant core. To help pay for the development, the Raleigh Housing Authority asked to issue bonds up to $31.7 million. Council approval allows the Raleigh Housing Authority to issue the bonds, which will finance construction and create more affordable housing in Raleigh. 

Tax law allows government entities, like the Raleigh Housing Authority, to issue a special type of bond called a private activity bondto help build affordable housing. Unlike bonds for things like roads or parks, which are paid back with tax dollars, these bonds are repaid using the rent collected from the housing itself, similar to how a regular bank loan works. The big advantage is that private activity bonds usually have lower interest rates. making the financing cheaper than a regular loan. This means the cost to finance is less than a regular loan.  

Earlier this year, City Council approved moving forward with a long-term ground lease for City-owned land and provided $15.7 million in funding to help make the project possible.

Moore Square Apartments will be developed by Harmony Housing Affordable Development. Enabling financing for developers is another piece of the affordable housing puzzle, one of many supported by the City and City staff. 

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