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Low-cost living at... Wakefield?
Affordable housing may be coming to exclusive area
June 17, 2005
By JAVIER SERNA, Staff Writer, News and Observer
RALEIGH -- Gregg Warren hopes to bring the concept of affordable housing to an area not known for it: Wakefield.
The Raleigh City Council recently approved a $1 million loan for Wakefield Hills, a proposed 80-unit apartment complex for lower-income families.
The project couldn't have gone forward without the help of the city, according to Warren, the executive director of DHIC, Inc., the private non-profit housing organization behind the project.
The council also approved a $775,000 loan for Terrace Spring, an independent living center for the elderly on New Hope Road, just north of Saint James Church.
The only council member to vote against the projects was Mike Regan, who said providing shelter shouldn't be the role of the city.
Raleigh's financial commitment comes from housing bond dollars.
Wakefield Hills is expected to cost about $8 million, and Terrace Spring $4 million, so Raleigh's commitment won't complete the projects. But the loans are crucial, said Warren.
In order for the projects to go forward, the North Carolina Housing Finance Agency must approve them and give them tax credits. The credits can then be sold to investors.
"One of the things [the Finance Agency] looks at is whether or not city funds are committed to the project," Warren said.
"It's a very competitive process," said Lyle Gardner, president of Evergreen Construction, Co., Terrace Spring's developer. "They have limited resources."
The finance agency likely won't consider the projects until August. Construction on Wakefield Hills could start next summer, said Warren.
DHIC builds affordable housing in the Triangle and was behind other North Raleigh projects, such as Avonlea on Spring Forest Road and Madison Glen at Lynn and Ray roads.
A market analysis presented to the City Council warned that the market was saturated, which could lead to vacancies.
But Warren disagreed with that analysis. He noted Madison Glen had only a four vacancies, while Avonlea had only one.
And Turnberry Apartments, an elderly community in Wake Forest, had no vacancies, he said.
"There's a real demand and need for a mixture of housing types in Wakefield," said Warren. "This will provide an opportunity for day-care workers, teachers, those in retail to be able to live in the community they serve."
Michele Grant, director of Raleigh's Community Development Department, said Wakefield is in the highest priority area for affordable housing. She added that DHIC's track record should put skeptics at ease.
"We think the project has a high likelihood of success," said Grant, who said income, growth and proximity to other affordable housing is the criteria used when considering new projects.
Renters in the developments could earn no more than $42,780 for a family of four, which is 60 percent of the median income in the Raleigh-Durham area. Rents would be capped -- for instance, a three-bedroom could be no more than $775, plus utilities.
Though nearby Wakefield Plantation has homes in a wide range of prices, it also has many homes that top $1 million.
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