CHAPEL HILL - The U.S. Department of Housing and Urban Development’s Office of Multifamily Housing Programs announced the completion of a Rental Assistance Demonstration (RAD) transaction with the Town of Chapel Hill Department of Housing. This transaction involves financing the construction of 54 affordable rental homes at Trinity Court Apartments in Chapel Hill, NC, through a contract with Community Housing Partners of Richmond, Virginia.
“We know the key to bringing down housing costs – we need to build more affordable homes,” said HUD Acting Secretary Adrianne Todman. “Each and every day, we are building new homes to meet the needs of our growing nation. Today, thanks to collaboration with our partners, 54 new affordable homes will be built for families in Chapel Hill, North Carolina.”
Trinity Court Apartments, originally built in 1975 and vacant since 2018, currently consists of 40 affordable rental homes across two structures. The project supports the demolition and new construction of two mid-rise, energy-efficient buildings featuring amenities such as a playground, picnic area, and several community spaces.
“Building brand new homes is crucial to addressing the shortage of affordable housing options that is affecting households across the nation,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “The Biden-Harris administration is committed to ensuring that individuals and families can live in vibrant neighborhoods with access to safe and quality housing.”
The total construction cost for the project is $14.8 million or approximately $275,000 per home. Financing comes from a combination of 9 percent Low Income Housing Tax Credits, a Commercial First Mortgage Loan, funding from the North Carolina Housing Finance Agency’s Affordable Housing and Community Connections Department, the Town of Chapel Hill Department of Housing, and NeighborWorks.
RAD was designed to address deferred maintenance in public housing nationwide and prevent loss of affordable housing due to substandard conditions. Since its inception through June 1, 2024, RAD has facilitated over $19.5 billion in capital investment to improve or replace more than 220,000 deeply rent-assisted homes.
Under RAD's framework, projects convert their public housing assistance to project-based Section 8 rental assistance. Residents continue paying 30% of their income towards rent while maintaining eligibility for very low-income support. Tenants must be notified prior to conversion and have a right to return post-construction.
More information about RAD can be found on its website along with data at the RAD Resource Desk.
