Developers bring affordable senior housing to Raleigh

Three new affordable senior housing projects in the future.Photo byNappyonUnsplash

By Mia Khatib

mia.khatib@triangletribune.com

RALEIGH — The City of Raleigh recently approved more than $6.5 million in conditional gap financing for three affordable senior housing projects. The proposed developments total 230 new units and will serve people 55 and older earning as low as 20% of the area median income.

Wallick Communities, a national leader in affordable development, is redeveloping nearly 4 acres at 506 Hoke Street into a 120-unit rental apartment for seniors. This project is a partnership with Wake County’s Community Action Agency Passage Home, which owns the land.

“Raleigh and Wake County are booming, and I think a lot of people in some of the core neighborhoods, and the neighborhoods around downtown are getting pushed out,” Wallick Communities Development Manager Jake Gill said. “This project is one small piece of the puzzle to try to keep people in the neighborhood that have lived there a long time.”

All the units will be one bedrooms with amenities like a community room and a gazebo. Hoke Street Apartments received $3.2 million in conditional funding from the city and another $2.6 million from the county.

City gap funding must be leveraged alongside tax-exempt bond financing, conventional financing, other public funding, and/or federal Low-Income Housing Tax Credits, which Gill said they are hoping to be awarded from the North Carolina Housing Finance Agency in the fall.

“We offer a variety of services through our programs that include housing stabilization, workforce development, and family and youth services,” Passage Home CEO Cari Boram said. “You could be a tenant with us and not necessarily engaged in services and [vice versa], but there is overlap between the two where that is appropriate.”

Through the Joint Venture Gap Financing Rental Development Program, the city also dedicated approximately $2 million to Woda Cooper Companies Inc.’s Iris Ridge proposal. The site, at 2900 Creech Road, will include 50 one- to three-bedroom units, storage space, a computer room, an exercise facility and more.

The total development costs $14.8 million, and the NCHFA LIHTC will generate close to $11M of that if awarded. Senior Vice President of Business Development Denis Blackburne told The Tribune rent at 20% of the AMI will be $285 for a one bedroom and $315 for a two bedroom.

“We don’t usually go that low,” he said. “We’re not going to move anybody out of the community. We’re actually opposite another senior development, which is on the other side of the road, so I think it’ll blend quite nicely into that community.”

Similarly, the city and county committed a combined $2.3 million to Evergreen Construction Company for Lorimer Spring, which will include 60 one- and two-bedroom units ranging from $300 to $1,175 based on income.

According to the U.S. Census Bureau, 48% of Wake County’s population growth from April 2020 to July 2022 came from people 55 and older. Evergreen Construction Company President Tim Morgan told The Tribune they focus on senior housing because of this demand. “Our senior communities have a one- to two-year wait list,” he wrote via email. “Our typical renter profile is age 67, single, female, with an income of around $24,000. So having affordable rental rates is extremely important for our seniors.”

Residents are projected to move in early 2027 for Lorimer Spring, and 2026 for both Iris Ridge and Hoke Street apartments.

“As people age out of their homes, they often can't afford to stay in their neighborhoods, especially in markets like Raleigh or Charlotte,” Gill said. “With developments like this, we're hoping to allow people to be able to share in the success of the area that they call home for a long time as they look to downsize.”

Mia Khatib, who covers affordable housing and gentrification, is a Report for America corps member.