Affordable Housing Development Services

The Town of Chapel Hill is requesting qualifications for a development partner to develop affordable housing on a Town-owned 4.11-acre property at 101 Weaver Dairy Road Extension (PIN: 9880-250-693), with proposals due June 15, 2026 and questions due May 11, 2026. The Town intends to retain land ownership through a long-term ground lease and prioritizes developments serving households earning at or below 60% of Area Median Income with affordability periods of 30 or more years for rental and 99 years for homeownership.

The site currently houses Fire Station 4 and a fire training facility. Preliminary concept designs offer two options: Option A with 76 units in a 4-story Type V building or Option B with 98 units in a 5-story Type III building, each with 112 parking spaces and community amenities. The site is strategically located approximately 0.5 miles from Interstate 40, 3.5 miles from Chapel Hill's main street, and near a planned Bus Rapid Transit stop, shopping, and healthcare services.

The Town anticipates the project is competitive for 4% and 9% Low-Income Housing Tax Credit financing. Municipal support includes fee waivers, nominal ground lease rates, and gap financing through the Town's Affordable Housing Funding Program and an Affordable Housing Bond approved by voters in November 2024. The selected Partner will negotiate a development agreement addressing financing structure, development costs, 15-year cash flows, operating reserves, general partner fees, and residual receipts sharing.

Respondents must demonstrate experience developing similar affordable housing projects, securing leveraged subsidy financing in North Carolina, and collaborating with municipal partners on public-private development partnerships. The Town anticipates respondent interviews between July 13–17, 2026, with Partner selection by July 31, 2026. The preliminary project timeline spans concept planning through fall 2026, rezoning application by fall 2026, Council rezoning approval by spring 2027, construction start by fall 2028, and project completion by winter 2030.