The Town of Chapel Hill is sticking with the Raleigh-based developer DHIC in its effort to get more affordable housing in the Ephesus-Fordham district.

That’s the word from Monday night’s meeting of the Chapel Hill Town Council.

Chapel Hill partnered with DHIC last year on a project to build 160 low-cost rental units on Legion Road. But in order for the project to be financially viable, DHIC needs to obtain a Low Income Housing Tax Credit from the state – and last month, their application was denied due to a paperwork error.

Town Council had the option to give DHIC more time to resubmit the application, or try to go in a new direction – but on Monday, Council members elected to stick with the company, extending the tax-credit deadline until August 31 of next year. (Assuming the tax credit goes through, the town will sell DHIC the Legion Road property at a low cost by the following April.)

Also at the meeting: Council members took the next step toward approving a proposal for the redevelopment of the fire station on Hamilton Road near East 54. The plan is to make it a mixed-use property: the town would transfer the land title to East West Partners, who would demolish the current fire station and build a new one for the town, along with a 45,000-square-foot office building.

Council members also took steps to help the 89 families in Orange County who face eviction and displacement because their landlords have stopped accepting Section 8 housing vouchers. Those steps included the creation of a $10,000 pilot program to provide rental and utility connection assistance.

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