Plan May Increase Housing Prices

With the Chapel Hill Town Council expected to pass its new Land-Use Management Ordinance by the end of the month, some local officials are questioning the ordinance's impact on housing costs in the area.

The ordinance solidifies many of the goals established by the town in its Comprehensive Plan, established three years ago.

But as the council implements those ideals, it might be complicating another one of the town's goals -- providing affordable housing.

The town, working alongside the University as well as other local governments, hopes to offer a greater number of affordable housing options, fearing that many University employees, students and town employees no longer can afford to live within town limits.

Retired urban planner Martin Rody, who specialized in land-use ordinances, said the town's ordinance places more restrictions on development than most community land-use ordinances, which will contribute to even higher housing costs.

"(The ordinance) goes considerably beyond what most communities are requiring," he said.

Rody said the ordinance includes strict stipulations and called the expanded Resource Conservation District, which bans development within 150 feet of a river, "a little extreme."

Orange County Planning Director Craig Benedict agreed with Rody's assessment.

"The high demand for housing and limitations on growth, because of environmental concerns, will lead to higher prices," he said.

But council member Jim Ward said Chapel Hill's proposal appropriately places a high emphasis on preserving the environment. "You could look at it as being more restrictive, or you could look at it as being more protective," he said.

Council member Pat Evans said the town has to balance its environmental protection provisions with housing cost concerns.

"If we're going to have affordable housing, it's probably going to require that we use different kinds of initiatives," Evans said.

The need for more affordable housing was underscored last year when, for the first time ever, the average closing home price for Orange County exceeded $300,000. The high demand for housing in the area and the resulting higher prices are results of large numbers of University employees and students, the town's proximity to the flourishing Research Triangle Park and the excellent local school system, officials said.

Also in the ordinance, the council is mandating that a percentage of all housing in new developments be established as affordable housing and is working with the Orange Community Housing and Land Trust, which helps low-income families buy homes.

Still, one Carrboro official said her town wouldn't adopt a similar land-use ordinance because of its potential threat to affordable housing in the area.

"We're pretty much one community; we share a lot of the same problems, but we have different ways of dealing with them," said Carrboro Board of Aldermen member Jacquelyn Gist.

"Carrboro has a real commitment to affordable housing," she said. "I can't see Carrboro approaching (development regulations) the same way as Chapel Hill."

Officials also recognize that the problem won't dissipate anytime soon. As the University's enrollment and physical size grows with its Master Plan, UNC's 50-year blueprint for campus growth, even more pressure will be put on the area's housing market.

Fred Stevens of the Chapel Hill Board of Realtors said those factors and the more restrictive ordinance will compound the affordable housing crunch. "We've got (affordable housing units) in the tens and hundreds, but we need them in the thousands."

The City Editor can be reached at citydesk@unc.edu.