Aldermen to Consider Housing Subsidies

The Carrboro Board of Aldermen will discuss the creation of a housing subsidy for town employees at its meeting tonight.

The board also will consider ways a program could be implemented.

Alderman Mark Dorosin proposed the subsidy plan after noticing a general problem of affordable housing in the Carrboro community. Due to high housing costs, Dorosin said that some of the town employees who would like to live in Carrboro are forced to live elsewhere.

"One of the things we've heard is that (town employees) can't afford to live in the town," Dorosin said. "Philosophically the issue is that the people who work in the town and make it what it is should be able to live in it."

Presently, 18 of the total 137 town employees -- 13 percent -- reside in Carrboro.

Dorosin proposed four options for the housing subsidy program. The main option is an Individual Development Accounts program, in which the town will match the amount of money participants save by a certain ratio. The more people save, the more the town will help out.

The IDA Matching Savings Program requires that the money be used for a down payment on a home in the town.

Dorosin said he hopes to alleviate any potential financial implications by establishing a fund designed specifically for employee housing. "What I would like to see is a combination of all the (subsidy plan) options and set up a revolving loan fund," Dorosin said.

He also said initial money for the fund could be provided by financial allocations from the board, the Nov. 6 countywide bond referendum or federal financial support.

As funds diminish from loans provided to employees, Dorosin said ongoing repayments would replenish the monetary supply. "The idea is that (the fund) would be in part self-sustaining," Dorosin said.

But other Aldermen have voiced concerns about the financial implications of providing housing subsidies.

Alderman Jacquelyn Gist said she is concerned about the town's budget constraints and the states of the national and local economies. "We have a lot of residents who make just as much or less than as our employees, so I'm not sure how I feel about providing subsidized housing for the town employees," Gist said. "I'm certainly willing to look at it, but I don't think we can afford it."

But Dorosin said comparing resident and town employee salaries is not an issue. "To me, (salary levels) shouldn't have any bearing on the final decision."

If the proposed housing plan is approved, Dorosin said initial steps will be taken to review different subsidy plan options and determine the level of demand for the plan. "My strongest interest is to convince my fellow aldermen that this is something that we can pursue."

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