Cheaper housing needed, Chapel Hill Town Council says

Chapel Hill Town Council members want to encourage affordable development in the Ephesus-Fordham district.

Sustainability officer John Richardson presented a proposed text amendment at a council meeting Monday night that gave incentives to developers who make their housing affordable.

The council started working on an affordable housing strategy for the district in May.

If passed, the amendment would create a new zoning district within the Ephesus-Fordham area. The district would only allow two-story buildings with a maximum height of 30 feet. To build up to five stories or a maximum of 60 feet, developers must propose that 10 percent of the units be affordable.

“It’s certainly an opportunity for us to gain a benefit through the payment in lieu – in exchange for greater density here,” council member Sally Greene said.

Richardson said the town defines affordability as priced up to 80 percent of the area median income for renting and 60 percent for ownership.

The provision would remain in place for 15 years for affordable rental and 99 years for owner-occupied housing. The council expressed concern about the limitations.

“In that area, it will be a challenge for middle-income professionals to find affordable rentals given that everything’s going upscale with renovations of different apartment complexes,” council member Maria Palmer said.

The council was also concerned about whether 10 percent of the development being affordable would be enough to serve the community’s need.

Holly Fraccaro, town of Chapel Hill housing advisory board chairwoman, said it is likely this portion will become a high-rise development.

Mayor Mark Kleinschmidt suggested raising the requirement to 15 percent.

“We’re talking about five-story buildings, and not eight- or nine-story buildings,” he said.

Town Council member George Cianciolo said having the affordability provision in place for only 15 years for rental would not be worth the drain on resources it would create.

“I’m not supportive of 15 years of affordable rental,” he said. “It’s gonna have 200 years of unaffordable rental after those 15 years.”

The council decided to delay further discussion until Nov. 24.

Kleinschmidt said it is important to balance the different factors that go into providing affordable housing.

“It seems like we have to put together the right recipe here,” he said. “We might really, really like a certain kind of ingredient, but it might spoil the pot if we put too much in.”

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