Community Home Trust struggles to sell condos to young buyers

Robert Dowling wants to connect Chapel Hill residents with affordable housing — but the small residential units he manages just aren’t selling.

Dowling is the executive director of the Community Home Trust, a nonprofit that provides affordable housing.

Of the 212 total properties the trust manages, 85 are condominiums, Dowling said.

“There is a shortage of buyers, and this has manifest recently with small condos,” he said. “There seems to be less demand than supply.”

Dowling said recently the nonprofit has had difficulty selling some of its properties, particularly to younger home buyers.

“Our condos are just not selling right now,” he said.

“They’re geared toward young people who don’t need that much space. Ideal for maybe single people, or college students or those just entering the job market. And right now these types of people just aren’t in the market to buy.”

In 2010, the town adopted the Inclusionary Zoning ordinance, which requires developers looking to build homes in Chapel Hill to provide 15 percent of their residences at affordable prices for low to middle class households.

“It gives developers something extra, which in turn gives extra opportunity for those looking to buy with limited means,” said Chapel Hill Town Council member Sally Greene.

“It’s designed to work with every industry.”

Greene cautioned that Chapel Hill is facing its challenges with affordable housing.

“The town has a long history of wanting to be inclusive,” she said. “Chapel Hill housing prices are high because it’s desirable. We’re uncomfortable with that.”

This year the nonprofit received $406,248 from a federal block grant, said Loryn Clark, the housing and neighborhood services manager for the town.

Dowling said he is hopeful other homes will sell and estimates that approximately 10 to 15 of the organization’s properties will sell throughout the year.

Aside from the condominiums, the nonprofit also has town homes and single family homes for sale.

“I think this program is tremendously successful,” Dowling said. “While some homes are brand new, others have been sold as many as three times over.”

Dowling said he was thankful for the support of Chapel Hill elected officials.

“It’s a marriage forever,” he said. “They are stuck with us.”

As for what to do with the condos, Dowling said other strategies are available.

“It may make sense for us to determine which homes are less desirable, sell them and put the money from the profits toward the other homes in the (land trust),” he said.

“Housing, in general, is improving,” Dowling said.

“That’s what all the statistics say. But there are fewer homes on the market, and the housing prices are going up. The same holds true in Chapel Hill as it does anywhere else.”

city@dailytarheel.com