Affordable Housing Funding

Local Affordable Housing Funding Program

Overview

The Town’s local Affordable Housing Funding Program (AHFP) provides funding to create and preserve affordable housing for low- and moderate-income households in Chapel Hill. Key information about the AHFP is included below. 

Priorities

• Rental housing for households earning less than 50% of the current Area Median Income (AMI)
• High impact projects, such as projects with more than 50 units and/or projects primarily serving populations with high housing barriers or historically marginalized populations
• Shovel ready projects that can get units on the ground quickly once funding is allocated (within 3 years)
• Projects accessible to frequent public transit, particularly along the Bus-Rapid-Transit corridor
• Projects with high leverage from other funding sources, including Low-Income Housing Tax Credit projects
• Projects that incorporate environmentally friendly and sustainable building and site design
  
  

Eligible Activities

Eligible activities for funding include: 

• Construction of New Affordable Housing  
• Land Acquisition and Land Banking 
• Rehabilitation and Redevelopment
• Future Development Planning 
• Rental, Utility, and Relocation Assistance
• Financial Assistance to Homeowners

Additional details about the AHFP are included in the Local Affordable Housing Program Allocation Strategy(PDF, 295KB). In addition, The Affordable Housing Funding Guide(PDF, 488KB) provides guidance on key terms and requirements of the Town’s affordable housing funding.  

Affordable Housing Bond

Overview

The Town has approved a total of $25 million in bond funding to be used for affordable housing in two different municipal bond referendums. The bonds will allow the Town to borrow general obligation bonds to support capital investments in affordable housing projects.

 Eligible Activities

Eligible activities for affordable housing bond funding include: 

• Construction of New Affordable Housing  
• Land Acquisition
• Rehabilitation and Redevelopment

The bond will follow the same priorities as the Town’s local Affordable Housing Funding Program (AHFP). Additional details and guidance are included in the Local Affordable Housing Program Allocation Strategy(PDF, 295KB) and the Affordable Housing Funding Guide(PDF, 488KB).  

2024 Affordable Housing Bond

Chapel Hill voters approved a municipal bond referendum on November 5, 2024 that includes $15 million to support affordable housing projects.

The $15 million will help support implementation of the Town’s Affordable Housing Plan & Investment Strategy that Council adopted in September 2023. The plan charts a path forward for the Town’s affordable housing work over the next five years and will require $50 million to implement.

The Town estimates the 2024 affordable housing bond could support the development and preservation of as many as 450 affordable housing units.

2018 Affordable Housing Bond

The 2024 bond is the second affordable housing bond Town voters have approved. The first bond was approved in 2018 for $10 million.

The 2018 bond was allocated to the following 8 projects that will develop 303 units and preserve 40 units of affordable housing. Access additional detail on these projects here(PDF, 219KB).

Additional information on approval of the bond funding plans and the 2018 bond referendum:

Fall 2025 Funding Plan Approval

Spring 2024 Funding Plan Approval

Fall 2022 Funding Plan Approval

Spring 2020 Funding Plan Approval

Link to 2018 Bond Voter Approval

Affordable Housing Funding Tracker

The Affordable Funding Housing Tracker reports on our affordable housing funding since 2020, when we began allocating our first affordable housing bond. 

The tracker is an interactive ArcGIS-based dashboard and StoryMap that share the details of individuals projects. It also shares high level trends in our local funding. The goal of the tracker is to help community members, partners, and elected leadership understand and track how we spend our affordable housing funding.

The tracker focuses on local funding that has been allocated to projects. It doesn't include federal funding or funding allocated to support general operating or administrative support for affordable housing efforts.

Community Development Block Grant (CDBG) Program

Public Hearing & Public Comment Period for 2026-2027 Action Plan

The Town held a public hearing during the Council Meeting on April 15 to hear resident feedback on the 2026-27 draft Community Development Block Grant funding plan, Annual Action Plan, and drafts of amended prior Annual Action Plans. These plans determine how the Town spends CDBG funding on affordable housing and community development this year.

• Action Plan Drafts:

  • Summary of Annual Action Plans & Amendments(PDF, 49KB)

  • 2026 Annual Action Plan Draft(PDF, 426KB)

  • 2025 Annual Action Plan Amendment Draft(PDF, 461KB)

  • 2022 Annual Action Plan Amendment Draft(PDF, 511KB)

Want to know more? Contact us at cdbg@chapelhillnc.gov.

Este aviso está disponible en español o en otro idioma bajo petición. Por favor, contacte a Katelyn Robalino al teléfono 919-969-5105 o dirección: 405 Martin Luther King Jr. Blvd. Chapel Hill, NC 27514.

CDBG Program Overview

The CDBG program is a federally-funded program through the Department of Housing and Urban Development (HUD). We receive CDBG funding every year because we qualify as an entitlement community.  

The main goal of the Community Development Block Grant (CDBG) Program is to develop thriving communities by providing decent housing and a good place to live, and increasing economic opportunities for low- and moderate-income people.

Current Funding Application

On February 2, 2026 the Town released up to $375,000 for the CDBG 2026-2027 Program Year. Up to $33,000 of the release can support public service projects. The application window closed on Monday, March 2.

For more information about the CDBG program, see:

• The Federal CDBG website

• The summary of the CDBG program's National Objectives(PDF, 409KB)

• The CDBG Program Overview(PDF, 178KB) one-pager.

• CDBG Quick Reference(PDF, 803KB)

Each spring, the Town Council allocates CDBG funding to organizations who provide housing or programs that benefit low- and moderate-income people. These allocation decisions are guided by the 2025-2029 Consolidated Plan, which uses feedback from Chapel Hill and County residents to identify important housing and community development needs of low- and moderate- income residents during the next five years.

The Consolidated Plan also identifies needs for the HOME program, which is a federal funding source from HUD that prioritizes housing needs for low- and moderate-income people. The Town does not directly receive HOME funding. Instead, we are part of the Orange County HOME Consortium, which is led by Orange County and also includes the Towns of Hillsborough and Carrboro. To learn more about HOME funding, visit the County's HOME webpage.

We use our Citizen Participation Plan(PDF, 187KB) (CPP) as a guide for community engagement on our CDBG goals and funding.

Each year, we create an Annual Action Plan to determine the use of CDBG funds for the year. At the end of the year, staff develop a Consolidated Annual Performance Evaluation Report (CAPER) to report on the most recent program year's successes.