Sept. 1, 2014 — Initiative Capital invested $868,000 in community development organizations through its new acquisition and rehab loan program to address the dramatic shortage of affordable rental housing in North Carolina.
According to a 2012 study by the National Low Income Housing Coalition and the N.C. Housing Coalition, for every 100 extremely low-income renters in North Carolina, there are only 33 available and affordable rental homes.
To begin to address this gap, Initiative Capital launched its acquisition and rehab loan program which has already provided loans to renovate 19 vacant housing units into quality affordable rental homes.
The program is part of Initiative Capital’s affordable housing preservation strategy, designed to remedy North Carolina’s shortage of both affordable rental housing and homeownership opportunities for low- to moderate-income families.
“The idea behind the acquisition and rehab program is to acquire vacant rental properties that in many cases have become eyesores in the community and rehabilitate them,” said Kevin Harris, president of Initiative Capital. “In doing so, we help to revitalize the community, but we also increase the supply of quality affordable rental housing and create a source of sustainability for the nonprofit developers that rehab and manage the rental units.”
Since the program was launched in 2013, Initiative Capital has made three acquisition and rehab investments across the state:
- Cape Fear Regional Community Development Corp., Wilmington - Cape Fear CDC received two houses from the City of Wilmington. Initiative Capital invested $203,000 to relocate the homes to new lots owned by Cape Fear CDC and to renovate the homes for resale as affordable housing in an expensive housing market.
- Kingdom Community Development Corp., Spring Lake/Fayetteville - $215,000 to acquire and renovate four homes for use as affordable rental properties, which will generate revenue for Kingdom CDC’s community economic development work in Cumberland County.
- Unity Builders Inc., High Point - $450,000 to acquire and rehabilitate a vacant 13-unit apartment complex. The project was completed in late 2013 and is fully occupied by low-income renters.
The acquisition and rehab loan program is available to both nonprofit and for-profit community development organizations that are preserving affordable housing in underserved or low- to moderate-income markets. For more information on Initiative Capital’s loan products, visit www.ncinitiative.org/financial-investments/loans or contact Harris at 919-835-6004 or kharris@ncinitiative.org.
The N.C. Community Development Initiative leads North Carolina’s collaborative community economic development effort, driving innovation, investment and action to create prosperous, sustainable communities. For more information, visit www.ncinitiative.org.