Wake County approves loan for new affordable housing

I n a significant milestone for Wake Count y’s affordable housing initiatives, the Board of Commissioners approved up to $910,000 to the Raleigh Area Land Trust to support the construction of the Cottages of Idlewild in downtown Raleigh.

The development will offer a mix of 18 affordable rental and homeownership duplexes to low-income families operating under the community land trust model. Under this model, the homebuyers will own the home but not the land on which it sits, meaning homebuyers will only pay property taxes on the home value and not the land value.

The units will be guaranteed affordable for 99 years. The home purchase assistance, below-market interest rate, low property taxes and the ability to pass the property to heirs will keep the cost of homeownership low, allowing home buyers to build generational wealth.

“Our commitment extends beyond the present. We’re preserving affordable land for future generations and fostering ongoing economic growth for homeowners,” said Chair Shinica Thomas of the Wake County Board of Commissioners. “I’m thrilled to witness the creation of generational wealth and equity, empowering low-income homeowners to thrive.”

The Cottages of Idlewild will be situated on 1.17 acres of city-owned land selected through a competitive process in 2021. The Raleigh Area Land Trust will ensure the affordability of all 18 units for at least 99 years, with one rental unit set aside for Wake County’s Rental Assistance Housing Program clients.

Unit Breakdown

Building Generational Wealth Through Homeownership

Homeownership opportunities in the Cottages of Idlewild are designed to help residents build generational wealth. Wake County funding for these homes will be provided at 0% interest for 30 years. Homes can be sold at prices affordable to those earning as low as 50% of the area median income and residents purchasing homes in the Cottages of Idlewild community will qualify for $60,000 in home purchase assistance from the City of Raleigh and may qualify for other sources of homebuyer assistance.

Shared-equity homeowners typically stay in their homes for six years or more, with 58% choosing to purchase another home when they move. Even with limits on home price appreciation, homebuyers who remain in their homes for 10 years can expect returns that would allow them to purchase a home on the open market , perpetuating the cycle of generational wealth. Homeowners can also pass homes down to their heirs, supporting generational wealth building.

The Cottages of Idlewild will also provide four affordable rental options, with proposed rents ranging from $519 to $2,014.

The Raleigh Area Land Trust and its partners have raised significant funding via public, private and philanthropic organizations to support this project. Construction is expected to start in the fall of 2024, with the project taking approximately one year to complete.

For more information about how to buy a home through the Raleigh Area Land Trust, click here .

The post Wake County approves loan for new affordable housing first appeared on Restoration NewsMedia .