Title
Vote to Approve Recommended Awards from the Housing Trust Fund for Fiscal Year 2026 and Supplementary Loan Funds
Abstract
Introduction & Background: The Housing Trust Fund is the primary vessel for support for development and preservation of affordable housing in Chatham County. Since its inception, the Fund has facilitated the investment of approximately $2,200,000 in new housing construction and rehabilitation of existing owner-occupied housing. In sum, the fund has supported the creation or maintenance of an estimated 450 units.
Applications for new Housing Trust Fund awards were collected from September through October of 2025. Members of the Affordable Housing Advisory Committee reviewed those applications and discussed and evaluated applications at the November meeting. Based on their evaluation, the committee voted to recommend the following grant awards:
• Funding for Preserving Home, Inc. in the amount of $150,000 to provide home repairs, accessibility modifications, and energy efficiency upgrades for low-income residents.
• Funding for Habitat for Humanity of Chatham County in the amount of $150,000 to support development of infrastructure for the Roberts Run townhome development in Pittsboro, which will provide 72 townhomes for purchase by Chatham County residents earning low and moderate incomes.
• Funding for Brick Capital CDC in the amount of $25,000 to support rehabilitation of a single family unit in Goldston, to be held as a rental affordable to Chatham County residents earning low incomes.
The Affordable Housing Advisory Committee also voted to recommend the following loan commitment
• Loan financing for Beacon Management Corporation in the amount of $1 million contingent on their receipt of a 9% Low-Income Housing Tax Credit award for their Redfield Place project in Pittsboro, through which 84 units affordable to households earning low and moderate incomes will be constructed. This loan shall have a term of 20 years at a fixed interest rate of 2.00%, with a balloon payment no earlier than year 15. This commitment shall be valid until June 30, 2028.
Staff recommends that Beacon Management Corporation be awarded a supplementary $94,800, the same amount as and in the place of impact fee reimbursements to which Beacon would be entitled as they develop affordable units, for a full loan amount of $1,094,800, under the same terms described above. This addition shall replace, not duplicate, impact fee reimbursements for the Redfield Place development; if approved, Beacon Management Corporation shall not be considered for future reimbursement of impact fees for this development.
Discussion & Analysis: The 2025-2026 Housing Trust Fund application cycle received four applications with funding requests totaling $1,605,000. These applications were reviewed by the Affordable Housing Advisory Committee in a process facilitated by staff according to published scoring criteria. In formal review, the Committee came to a consensus that each application merited funding. Given funding limits for grants and loans, AHAC recommended that award amounts be reduced from requested amounts to the amounts described above.
Preserving Home, Inc. (formerly Rebuilding Together of the Triangle) applied for funds to provide home repairs, accessibility modifications, and energy efficiency upgrades for an estimated 55 low-income households in Chatham County. Preserving Home leverages multiple public and private funding sources to ensure that residents have safe and quality homes, and a Housing Trust Fund award allows greater flexibility and for more comprehensive services for residents. The Affordable Housing Advisory Committee recommends that the Board of County Commissioners award a grant in the amount of $150,000 to Preserving Home.
Habitat for Humanity of Chatham County applied for funds to develop infrastructure such as roads, water, and sewer, for their Roberts Run townhome development, which will produce 72 townhomes for purchase by households earning low and moderate incomes. Habitat for Humanity pursues donations from several other sources, and awards from the county provide confidence to donors that described projects are of high quality and worthwhile. The Affordable Housing Advisory Committee recommends that the Board of County Commissioners award a grant in the amount of $150,000 to Habitat for Humanity of Chatham County.
Brick Capital Community Development Corporation applied for funds to support rehabilitation of a unit they acquired in 2025, which they intend to offer as a rental unit for a Chatham County household earning a low income. Brick Capital has represented that they would match a county award in the recommended amount, and pursue an agreement to accept referrals from Chatham County service providers in an effort to house formerly unhoused residents of the County in this unit. The Affordable Housing Advisory Committee recommends that the Board of County Commissioners award a grant in the amount of $25,000 to Brick Capital CDC.
Beacon Management Corporation applied for a loan to support their application for a Low-Income Housing Tax Credit (“Housing Credit”) in 2026. Through this Housing Credit, Beacon plans to build 84 rental units affordable to households earning a low income in Pittsboro. The Housing Credit application process considers several factors in evaluating potential projects: this site earns maximum points in terms of its location and amenity access, quantity of units, and other major factors. Favorable financing from local governments, which the terms described above (2% for 20 years with a balloon payment between year 15 and 20), represents another major consideration in Housing Credit review. The figures referenced above, totaling $1,094,800 when combining HTF funds and a “loan in lieu” of fee reimbursements, will create a very competitive application when compared to Housing Credit applications that have been successful in the past. If selected, Beacon anticipates that the Housing Credit value for this project could total some $10.8 million, alongside other major funding sources that may be available through the North Carolina Housing Finance Agency. Furthermore, the offer of a Letter of Commitment valid through the end of Fiscal Year 2028 means Beacon Management Corporation could apply for a Housing Credit in the 2027 application cycle should the 2026 application be denied.
How does this relate to the Comprehensive Plan:
The proposed awards and recommended action advance two Comprehensive Plan goals. These recommendations advance goal 9, “Provide equitable access to high-quality education, housing and community options for all,” by providing direct investments in housing development and preservation for low-income members of the Chatham County community. Investment in housing preservation and development also advances goal 8, “Become more resilient by mitigating, responding and adapting to emerging threats.” By investing in modern development and home improvements such as accessibility upgrades energy-efficient systems, housing across the county will be more resilient, consume less energy, and produce fewer emissions.
Budgetary Impact:
Approving the AHAC award recommendations will have an impact of $1,325,000 on the Chatham County Housing Trust Fund. This includes the full $325,000 allocated for grants in FY26 for awards to Preserving Home, Inc., Habitat for Humanity of Chatham County, and Brick Capital CDC. This also includes $1,000,000 in Housing Trust Fund balance, out of a total $1,196,000 available fund balance, made up of $300,000 from FY26 loan allocations and $896,000 in fund balance accrued in previous years. At the terms described, total interest on this loan will generate an additional approximately $485,000 in Housing Trust Fund balance over the life of the loan. As the recommended amounts are equal to or less than allocated Housing Trust Fund amounts, no net budgetary impact will be realized.
Approving the recommended supplementary “loan in lieu” of fee reimbursements will require an allocation of $94,800 in the FY27 budget, which will be added to the Housing Trust Fund in preparation for eventual loan disbursement. No impact will be realized on the FY26 budget.
Recommendation/Motion: Vote to approve the recommended 2025-2026 Housing Trust Fund awards and supplementary loan funds.