New Hanover Community Endowment launches affordable housing strategy

Greg Childress
·3 min read
a couple stands in a home under construction
a couple stands in a home under construction

The National Low Income Housing Coalition reports that there are 326,751 extremely low-income households in North Carolina, but only 130,930 affordable rental homesPhoto: Getty Images

The New Hanover Community Endowment has launched an Affordable Housing Investment Strategy to allocate $19.1 million to support existing and future affordable housing in the coastal county. The investment is intended to mitigate the county’s ongoing affordable housing crisis by helping to facilitate the rehabilitation of existing properties and the construction of new affordable housing units.

The investment strategy comes as reports show that 35% of households in New Hanover County are cost-burdened, which means more than 30% of household income is spent on housing expenses.

Terri Burhans
Terri Burhans

Terri Burhans, an NHCE network officer who oversees community development, said a comprehensive, long-term strategy is needed to address the affordable housing crisis.

“You won’t be able to build your way out of this,” Burhans said. “Attacking this in different ways, meaning raising income, lowering expenses in our community, will have to work alongside this investment strategy in order for it to be a success.”

New Hanover County’s housing crisis is being driven by land prices and the coastal region’s “desirability,” both of which have led to higher housing costs, Burhans said.

By 2032, Burhans said, studies project the county will need more than 12,000 new rental units and nearly new 17,000 homes to meet demand.

The investment strategy has three key focus areas:

  • Stabilization:  The NHCE has allocated $8.1 million in core operating support over three years to nonprofit housing providers identified in the 2023 grant cycle to support existing housing and prevent displacement.

  • Production: The NHCE will spend up to $11.5 million in 2024 on production and rehabilitation of affordable housing units. A rolling grants cycle is established to identify eligible projects and guide applicants through the application process.

  • Capital: NHCE will also explore creating a fund to provide low-cost capital for development projects aligned with the goal of increasing and preserving affordable housing. The study will be a collaborative effort that involves city and county authorities, convening housing partners, and consulting subject matter experts to develop actionable recommendations.

“With over $50 million in grant requests from the housing community, the 2023 grant cycle solidified the need for us to create this investment strategy,” Chris Boney, chair of the NHCE’s Grants committee said in a news release. “Our residents deserve a path to safe, stable, and affordable housing, and we’re eager to be part of the solution.”

NHCE’s 2024 grant cycle will support nonprofit housing providers along with other organizations aligned with the Endowment’s “pillars” of education, social and health equity, community development, and community safety.

“The affordable housing crisis is a nationwide issue, and one that impacts so many in our New Hanover County community,” said Bill Cameron, chairman of the NHCE board. “This comprehensive strategy represents a collaborative effort between the Endowment and the community, presenting solutions that help foster a thriving environment for all residents.”

NHCE was established from the sale of the County-owned New Hanover Regional Medical Center to Novant Health in 2020. From its sale, the New Hanover County Board of Commissioners invested nearly $1.3 billion to form the endowment to benefit the community.

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