The Town of Chapel Hill is proud to announce the launch of a $20 million Affordable Housing Loan Fund. This initiative was developed in partnership with UNC Health and Self-Help Ventures Fund. This fund aims to preserve and create at least 600 affordable housing units over the next 20 years.
Seed Funding and Partnership Details
In 2023, the Town and UNC Health committed a total of $5.7 million in seed funding to kick-start the initiative. Self-Help Ventures Fund has successfully leveraged these investments. It attracted extra capital from banking partners. This effort helped create the full $20 million loan fund. The fund will offer below-market loans aimed at acquiring, preserving, and developing affordable housing within Chapel Hill.
Community Impact and Partnerships
“The Town is excited to launch this new initiative. It aims to support affordable housing in Chapel Hill.” Sarah Viñas, Director of the Town’s Affordable Housing & Community Connections Department, expressed this aim. “We’re grateful for the partnership with UNC Health and Self-Help. This collaboration shows what we can achieve when different sectors unite to tackle one of our community’s most pressing challenges.”
UNC Health’s Janet Hadar, President of UNC Hospitals, added, “Affordable housing is a widespread issue. We can’t solve it individually. By working together, we can make a significant and positive impact on residents and the community.” She clarified the hospital’s involvement with the Affordable Housing Loan Fund. While it provides financial support, it does not play a role in determining how the funds are administered. She emphasized that UNC Health’s primary goal is to guarantee that employees are aware of the fund’s benefits. This awareness further supports the community and addresses the affordable housing needs in Chapel Hill.
Alignment with Chapel Hill’s Affordable Housing Plan
This new loan fund aligns with the Town’s Affordable Housing Plan. The Town Council approved the plan in 2023. The fund also supports the Town’s broader affordable housing goals. It helps to tackle the pressing need for affordable housing in the region.
About Self-Help Ventures Fund
Self-Help Ventures Fund is a leading national Community Development Financial Institution (CDFI). It has been selected to manage the Affordable Housing Loan Fund. Self-Help brings significant experience in lending, underwriting, and affordable housing development across North Carolina, including the Triangle area.
Loan Details and Application Process
The fund will offer two types of loans. These loans range from $500,000 to $7 million. They aim to support the preservation or creation of affordable housing. The loans will be available as 5-year bridge financing or 15-year permanent subordinate financing. Self-Help will oversee loan applications, underwriting, and monitoring of all loans issued.
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According to a recent report by: Town of Chapel Hill.
