The City of Raleigh’s Joint Venture Gap Financing Rental Development Program provides up to $15 million in subordinate loans to support the development of affordable multifamily rental housing. This program assists Low-Income Housing Tax Credit (LIHTC) projects and other affordable housing initiatives through gap financing for new construction or rehabilitation. Funding is sourced from the HOME Investment Partnerships Program and Affordable Housing Bond funds, with all awards subject to Raleigh City Council approval. The program targets households earning at or below 80% of the area median income (AMI).
Applications for the program open on December 18, 2024, and two rounds are available in 2025. The first deadline is January 24, 2025, covering 9% LIHTC, 4% LIHTC (Round 1), and non-LIHTC projects. The second deadline, August 22, 2025, covers 4% LIHTC (Round 2) and non-LIHTC projects. A mandatory pre-application meeting must be held before the respective deadlines. Applications are submitted exclusively through the Neighborly Software portal, and incomplete or late applications will not be considered. Evaluations for the first round will occur from January 25 to March 31, 2025, and for the second round from August 23 to October 31, 2025. Funding recommendations will be presented to the City Council in April and November 2025.
Eligible projects must include at least 24 rental units and may involve new construction, rehabilitation, or adaptive reuse. Properties must comply with applicable building codes, achieve ENERGY STAR Multifamily New Construction certification, and adhere to the City’s Affordable Housing Location Policy. Projects must be within Raleigh city limits or in the process of annexation. Exceptions to the location policy are evaluated on a case-by-case basis. Properties must demonstrate site control at the time of application and provide plans for rezoning if required.
Affordability requirements mandate that units remain affordable for a minimum of 20 years or the extended LIHTC use period. For 9% LIHTC projects, 25% of units must be affordable to households earning no more than 30% AMI, while 4% LIHTC and non-LIHTC projects require 10% of units at this level. At least 5% of total units must be reserved for referrals from City-approved housing programs, and 10% of units must support Wake County’s Rental Assistance Housing Program. If HOME funds are used, additional requirements for households at or below 50% AMI apply.
Loan terms include interest rates between 0-2%, with repayment schedules tailored to project needs. Loans are available for 20-40 years, contingent on maintaining affordability. Repayment options include deferred, fixed, or amortizing schedules, and the City retains a right of first refusal in case of property sale. All projects must meet underwriting standards aligned with NCHFA Qualified Allocation Plan (QAP) criteria.
Applications will be scored on criteria such as financial feasibility, development quality, and alignment with City housing goals. Location, preservation, and deeper income targeting are also prioritized, with additional points for sustainability and senior housing developments. Submission requirements include detailed project descriptions, financial projections, evidence of site control, zoning compliance, and minority- and women-owned business participation. Applicants must also provide a market study, letters of support, and documentation of supportive services for residents.
