Raleigh just brought nearly 300 income-restricted apartments online in one week, a rare one-two punch in the region’s tight housing market. The new communities, Birch & Branch in North Raleigh and The Pines at Peach in South Raleigh, are the latest examples of how the city is leaning hard on layered public-private financing to get affordable projects built in a high-cost environment.
What Opened
As reported by The News & Observer, the two developments were built by Oppidan Investment Company and together represent more than $83 million in new construction. Birch & Branch includes about 180 apartments, while The Pines at Peach delivers roughly 119 units. Both are now either actively leasing or in their final round of move-ins, adding a spread of one, two and three bedroom homes in neighborhoods that have been growing fast.
Where They Sit And What They Offer
According to Birch & Branch, the North Raleigh property includes a mix of one, two and three bedroom floor plans along with on-site amenities for residents. Oppidan lists 119 affordable units at The Pines at Peach, with features such as a clubhouse, playground and fitness room aimed at making the complex more than just a place to sleep.
How The Financing Stacked Up
City staff and the developer say these buildings only penciled out because of a complicated stack of funding that has become increasingly standard in the Triangle. The City of Raleigh’s planning materials note that both Birch & Branch and The Pines at Peach used 4% Low Income Housing Tax Credits, a tool often paired with tax exempt bonds. North Carolina Local Government Commission records show the Raleigh Housing Authority authorized those bonds for The Pines at Peach. That public backing was combined with tax credit equity and private financing to close the funding gaps and get construction moving.
Public Support On The Ground
The News & Observer reports that the city entered into a ground lease for The Pines at Peach and helped fund a road extension to reach the site. Both the City of Raleigh and Wake County also provided gap financing to support the numbers. Those kinds of local commitments, from land agreements to below market loans, are increasingly described by developers as the only way to make subsidized housing feasible in booming markets like Raleigh.
Developers’ View And What’s Next
Oppidan vice president of development Noah Wagner said the two projects “reflect our commitment to being part of the solution, bringing together strong public-private partnerships to create housing that is both attainable and thoughtfully designed,” according to company materials. The firm is already pushing ahead on a third Raleigh community, Barton Oaks on Strickland Road, which it says will bring more affordable units as it moves through permitting and construction.
These openings will not single handedly solve Raleigh’s affordability crunch, but they highlight how public dollars and private investment are being stitched together to deliver housing at a larger scale as the Triangle keeps growing.
