The push for more affordable housing in the heart of downtown Raleigh takes a significant leap forward, as the City Council recently approved a major financial step towards the development of the Moore Square Apartments, a move that promises to add 160 affordable rental units to the city's bustling center. With this vote, the Raleigh Housing Authority is now cleared to issue bonds up to $31.7 million, a crucial step in funding the construction designed to make urban living attainable for working-class families and individuals, according to a release on the City of Raleigh's official website.
The financial mechanics involve the issuance of private activity bonds by government entities, in this case, the Raleigh Housing Authority; these are unique in that they are repaid through the revenue generated by the rent from the units, and not by taxpayer dollars, offering a cheaper financing option with lower interest rates compared to standard loans, which is a welcome financial break for the affordable housing initiatives with its heart set on materializing this vision for a more inclusive downtown Raleigh.
Earlier this pivotal year, momentum for the affordable housing project began with the City Council's approval of a long-term ground lease using City-owned land, matched with a significant $15.7 million funding towards bringing the Moore Square Apartments project to life. The endeavor is a result of a partnership with Harmony Housing Affordable Development, a developer who will now benefit from the approved financing, representing a critical piece in the affordable housing puzzle that the City and its dedicated staff have been working to solve.
