Construction of the new apartment buildings is outlined in UNC's Development Plan, which was passed by the Chapel Hill Town Council Oct. 3.
The Development Plan is an eight-year guideline for campus growth. Because the apartments are included in the plan, UNC will not need to seek town approval to begin construction.
But officials are still looking for a location for the housing project.
Construction could take place behind Hinton James Residence Hall. The apartments would cater to juniors, seniors and graduate students.
The housing is expected to benefit the University directly by providing much-needed bed space to combat an increase in enrollment. UNC officials estimated in August that the number of both on- and off-campus student residents will increase 33.6 percent in the next decade.
But Town Council member Jim Ward said he believes the proposed apartments additionally would benefit the population of Chapel Hill, as well as students.
"One resident can't afford the same rent that four students can split," Ward said. "Any housing that the University can create for students will begin to address the impact that student housing has on the cost of rental houses."
Chapel Hill Mayor Kevin Foy said another benefit of the on-campus housing would be its implication on affordable housing opportunities in town. Foy said he believes the apartments could help lower rental rates in the area and free up scarce housing for low-income residents.
Chris Payne, UNC's housing director, said the idea for the new apartments stemmed from student interest, the estimated influx of new students in coming years and UNC's Master Plan, which is the 50-year blueprint for campus growth.