At Thursday night’s meeting, the Chapel Hill Town Council discussed an affordable housing plan for the proposed Obey Creek development.
Ben Perry, finance director of the development company East West Partners, proposed that 15 percent of the for-sale units and 5 percent of the rentals be designated as affordable housing.
East West Partners wants to build 1.6 million square feet of commercial, residential and office space on 35 acres at the Obey Creek site, which is across from Southern Village. Thursday’s meeting was part of the town’s ongoing negotiation with the developer.
An Obey Creek Affordable Housing Subcommittee, made up of some council members and stakeholders, had meetings with East West Partners over the last month.
Perry said East West Partners would provide 15 percent of the for-sale units at prices affordable to people earning up to 80 percent of the area median income (AMI), which is $66,000 for a Chapel Hill household. In other words, the developer would offer six to eight for-sale townhouses at a reduced cost. This meets Chapel Hill’s inclusionary zoning ordinance for residential development.
Perry said the developer could offer 5 percent of the 600 rental units at a reduced cost.
Half of those 30 reduced-cost rentals would be eligible to section 8 and veteran affairs voucher holders. These would serve people who earn between 30 and 60 percent of the AMI.
The other half would be offered to people earning between 60 and 80 percent of the AMI. These tenants would pay 30 percent of their income for the units.
The council could ask the developer to pay a fee for affordable housing programs offsite instead of offering affordable housing at Obey Creek.
“My suggestion is that we take the affordable rental units, not the payment in lieu,” said Delores Bailey, executive director of the non-profit EmPOWERment Inc. She served on the Obey Creek affordable housing subcommittee. “There are lots of families that we can accommodate with this project when it happens.”
The town also discussed a draft of the Obey Creek Development Agreement. This agreement, a contract between the town and the developer, would list the permitted uses, housing requirements, environmental specifications, and other conditions and requirements.
The council would vote on the agreement in June, at the earliest. You can find the draft development agreement here. Email your feedback to mayorandcouncil@townofchapelhill.org and developmentagreement@townofchapelhill.org.
The council’s next negotiation session is scheduled for Feb. 19 at Chapel Hill Town Hall at 7pm.
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