An application asking for tax credit funds for new affordable housing projects, submitted by Downtown Housing Improvement Co. in Raleigh, was thrown out by the N.C. Housing Finance Agency because of an oversight in the application.
DHIC, which is partnering with the town of Chapel Hill to build the complexes on Legion Road, failed to include a commitment letter.
The problem came as no big surprise to the leaders of the project, who have experience in development.
DHIC’s president Gregg Warren expressed his regret in a press release about a week ago, calling the omission “an unfortunate setback.”
“It is not unusual to take two or three years for such projects to move forward,” Warren said. “It would not be the first development that was unsuccessful the first time it was submitted for funding.”
The town allotted 8.5 acres of land in the Ephesus Fordham District for the project, which would include 84 housing units for working families in one complex and 60 units for senior citizens in another.
Chapel Hill Town Council member Sally Greene said the town also expected setbacks, just not because of an oversight.
“It was never a sure deal,” she said. “Obviously we had hoped that it would succeed the first time around.”