Work to Begin on Affordable Homes

The nonprofit trust sells affordable housing to a wide range of buyers, said Orange County Affordable Housing Task Force member Christine Westfall.

"Many people cannot afford housing in Chapel Hill," she said. "A typical teacher might earn around ($30,000) to $35,000. And they would probably start at something lower."

The ceremony will take place from 4 p.m. to 5 p.m. on Sprunt Street in Meadowmont.

According to recently released housing figures, the average new home in Chapel Hill cost $327,000 in 2002.

In Rosemary Place, two-bedroom townhomes cost $80,000 and three-bedroom townhomes cost $95,000. Each of the more than 30 homes is already sold, said Mark Chilton of EmPOWERment Inc., a local affordable housing advocacy group.

Once completed, the homes will become part of the Community Land Trust, a model that will keep them affordable permanently. This is possible because the trust sells the homes but continues to own the land.

"If we didn't keep those homes affordable in this way, they'd become unaffordable pretty quickly," Westfall said. "So the idea is that these homes are going to serve generations of people who earn less than enough to afford housing in the area."

The new owners of the townhomes cannot resell the homes for market value but can make some profit from their appreciated values, Westfall said.

"The home usually costs $40,000 below market value," Westfall said. "You can sell for the price you paid for it plus 25 percent of the profit."

President Roger Perry of East West Partners, which donated the land to be used, said the decision to donate was based on the need for more diversity in housing in Meadowmont.

Perry commended both past and current Chapel Hill town councils for their work toward housing diversity.

"I think there have been some wonderful measures taken, starting with the last council," he said. "The current council and (Mayor) Kevin Foy are doing an excellent job taking steps to solve the problem."

Carrboro and Chapel Hill have the lowest amounts of affordable housing in all of Orange County, where the cost of housing is highest in the state, said Susan Levy, executive director of Habitat for Humanity of Orange County.

Levy said the majority of applicants for Habitat housing in Orange County live or work in Chapel Hill. She said the shortage affects everyone from families to teachers and police officers.

"We feel the need in Chapel Hill is greatest," she said. "People want to live in the Carrboro-Chapel Hill school district."

Orange County slowly is improving on the issue of providing affordable housing, said Barry Jacobs, chairman of the Orange County Board of Commissioners.

"I think we're just starting to get up to speed," he said. "It's only been in the past half a dozen years that local public funds have been put toward it."

The City Editor can be reached at citydesk@unc.edu.