Wilmington City Council approved a new affordable housing development on Kerr Avenue this week: along with a $4 million loan to help it get built.
The six-acre plot at Kerr Avenue and Kimberly Way currently has a few single-family homes — this redevelopment project will replace them with 184 units of affordable housing.
Developer Blue Ridge Atlantic will provide 1, 2, and 3-bedroom apartments for those making below the area median income. Rents will range from $500 to $1800 a month, depending on the family size and the size of the apartment. The apartments are affordable to those making 30%-80% of the Area Median Income, as determined by HUD guidelines, and will stay that affordable for a minimum of 30 years. That could include a single person making just $20,850 a year at 30% AMI, or a family of 4 making $79,350 at 80% AMI.
That rezoning came to council with a recommendation for approval from staff and a unanimous recommendation from the planning board. Council voted unanimously in favor of the conditional rezoning after a largely positive public hearing — though a few council members voiced concerns about traffic impacts. Staff reassured the council that they’ll account for traffic mitigation needs as they conduct the technical review, and a Traffic Impact Analysis indicated that no additional traffic infrastructure is needed.
Council also unanimously approved a $4 million loan to the developer to help build the project — a million shy of what the developer asked for, as staff say they have limited funds and other projects coming down the pipeline.
The funding for affordable housing is now being renewed continually by a 1-cent tax (out of the overall property tax rate), which accumulates in a dedicated fund.
During this year's budget negotiations. Councilmember Luke Waddell lobbied to pause contributions to the affordable housing fund as part of an unsuccessful attempt to prevent a tax increase. At the time, he cited the surplus of $6.4 million for projects — though with this vote, more than half of that surplus has now been used.
The funding for the $4 million came largely from the city’s affordable housing fund leftovers from 2022 and 2023, along with some funding from the current year’s general fund. The developer is also seeking gap financing assistance from New Hanover County to build the 184-unit development.
Housing and Neighborhood Services Director Rachel Schuler (formerly Rachel LaCoe) says the loan to the developer is at 1% interest, and repayment is contingent upon the available net cash flow after payment of debt service.
“We want to make sure there are sufficient funds for operating and maintenance reserves,” Schuler said.
The development will help fill the need for affordable housing in Wilmington: according to the county Workforce Housing Advisory Committee's 2024 report, there's a growing gap between the need for housing and what's available — and that gap is growing by 2,902 units annually. These 182 new affordable units will help fill some of that gap.
