Chapel Hill implements affordable housing policy

Rising rental rates and housing prices pose a major hurdle to providing affordable housing in Chapel Hill — an issue town council and mayoral candidates have made a cornerstone of the 2011 race.

The Chapel Hill Town Council adopted a long-term strategy to increase the availability of affordable housing units in June.

The plan’s goal is to provide affordable housing for everyone who makes equal to or less than $52,400 — 80 percent of Chapel Hill’s median income, said Loryn Clark, Chapel Hill neighborhood and community services manager.

To qualify as affordable housing, a unit can’t cost more than 30 percent of a family’s income per year. That means a family that earns $52,400 wouldn’t pay more than $15,720.

But the town is in the early stages of enacting the policy.

“We are trying to create a range of affordable housing options,” Clark said.

The plan is meant to supplement the Inclusionary Zoning Ordinance passed in June 2010, which requires new developments with more than four housing units to set aside 15 percent for affordable housing.

Community Home Trust Executive Director Robert Dowling, who works with the town to regulate residential prices, said the zoning ordinance must balance resident and developer interests.

“Public policy has to take into account what’s happening in the marketplace,” he said.

He said that a policy requiring too many affordable units might hurt developers’ profits and stop them from building in the town.

But town council member and candidate Donna Bell said providing enough affordable units remains a necessity.

Chapel Hill’s high housing density and proximity to the University cause residents to spend a larger amount of their income on housing than in other towns, Bell said.

Bell said rising student rents cause residential price increases in Northside and other neighborhoods.

Dowling explained individual students often split housing costs with roommates and have an easier time paying rent than single-income families.

“It’s a tough nut to crack,” he said.

He said landlords increase prices to cater to students, shifting prices out of a family’s range.

Bell said though the affordable housing strategy is moving forward, the program is in flux until the town’s comprehensive plan for growth is finalized. The plan is slated for completion June 2012.

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