WS Chronicle

By Tevin Stinson  

The Chronicle  

Next month the Winston-Salem City Council will vote to approve the first-round funding for its newly adopted Affordable Housing Development (AHD) program. Ahead of the full council vote in May, earlier this week the Community Development/Housing/General Government Committee had an opportunity to discuss the proposals for Low-Income Housing Tax Credit (LIHTC) projects and the available $1 lots.  

Affordable Housing Development and Low-Income Housing Tax Credit processes 

To help support the development of affordable housing throughout Winston-Salem, city officials adopted the AHD program. The program is designed to offer flexibility for contractors and developers to create and preserve affordable rental and owner-occupied housing.   

Last Fall, the city council voted to make changes to the AHD program. The changes included adopting an application process where interested individuals and groups can apply for help from the city to create affordable housing.  

Applications for the AHD program were due on Jan. 24, for both the LIHTC process for multi-family units and the city-owned single-family parcels. According to Shantell McClam, neighborhood services director, in total they received 50 proposals from two dozen different developers. McClam said 26 of the proposals they received were “responsive.”  

McClam explained that non-responsive proposals were received after the deadline, were in an unapproved format when submitted, were incomplete, or had conflicting information in the application and accompanying documents.   

After determining which applications were responsive, McClam’s team and Housing Development staff reviewed applications. From there, the Affordable Housing Development evaluation team scored applicants based on certain criteria, including development quality, financial feasibility, development and management team, Minority/Women Business Enterprise (M/WBE) participation, and supportive services.  “This is not a process that we took lightly,” said McClam when discussing the Afford Housing Development program.  

“We wanted to make sure that we looked at every page that was submitted to us. We knew this was the first cycle and it was important for us to try to get it right.”   

Proposals were then sent to the City’s Affordable Housing Coalition, which was formed in 2019, to articulate strategies that improve the quality and increase the quantity of affordable housing, equip people to better afford and access housing, assist in the development of additional strategies to support affordable homeownership opportunities, and help identify and secure sustainable, long-term resources for affordable housing.   

In total the city has set aside $10 million to fund projects brought forward by the Affordable Housing Program. Five million dollars will be used to fund projects for this cycle and the other $5 million will be awarded in November. The application process is scheduled to open in June for the November cycle.  

In total six proposals made it through the city’s vetting process and will be considered for approval next month. The council will consider three LIHTC proposals and three proposals for the city-owned parcels. 

A Look at Developers and Proposed Projects 

LIHTC Proposals 

The LIHTC proposals being considered are from Greenway Residential Development LLC, Workforce Solutions LLC, and Poplar Development Group, LLC.  

LIHTC funding is allocated by the N.C. Housing Finance Agency. Developers seeking credit must submit an application for each rental property to be considered. When discussing the decision to recommend  LIHTC projects, City staff said it’s unlikely for a city the size of Winston-Salem to be awarded multiple LIHTC projects, and without the support from the City, it’s doubtful developers would receive funding.     

Greenway Residential Development, LLC – Sage Pointe Apartments  

Greenway Residential Development, which is based in Charlotte, is requesting $1.6 million from the City to help develop a 60-unit apartment complex in the North Ward known as Sage Pointe Apartments. In total the project would cost around $16 million.  

The proposed development will be two three-story garden style buildings with a community building. It will consist of 10 one-bedroom, 30 two-bedroom, and 20 three-bedroom units and serve families with incomes below 80% of area median income.  

The community center will be designed for families and will feature a computer center and 24-hour fitness center via key card access. The site will also have a covered picnic area, playground, and on-site laundry facility.  

Mark Richardson, project manager with Greenway Development, mentioned that if they are awarded funding, this will be their first project in Winston-Salem. Richardson said the need for affordable housing is what has brought Greenway to the City of Arts and Innovation.  

“There’s such a need for affordable housing,” Richardson said. “My primary market area where we are with Sage Pointe, there’s about 6,700 tenants that could move in with that income range. We’re only going to be able to provide 60 … so there’s such a need for even more.”  

Workforce Solutions, LLC – McClain Crossing 

Workforce Solutions is requesting $1.4 to build McClain Crossing, a 72-unit housing development on Stafford Place Boulevard, which is located in the South Ward. The total development cost for the project is around $17 million.  

Proposals from Workforce Solutions include three, three-story garden-style buildings with a clubhouse. It will consist of 12 one-bedroom, 36 two-bedroom, and 24 three-bedroom units and serve families with incomes below 80% of area median income.  

The site will also include a clubhouse, a resident computer center, laundry room, playground, covered picnic area, and outdoor seating.  

Poplar Development Group, LLC – Tullip Commons at Old Vineyard 

In their proposal Poplar Development Group is requesting $1.9 million to build a 60-unit development for seniors. The development will be for residents age 55 and over with incomes below 80%. It will be a four-story garden style building and will consist of 20 one-bedroom and 40 two-bedroom units.  

Amenities will include a community room, fitness room, computer center, on-site laundry facility and a natural area with a gazebo. In total the project located at 4124 Old Vineyard Road will cost over $19 million. 

When discussing their proposal, Michael Rodgers, with Poplar Development, mentioned that there are currently four homes on the property which are all vacant. The homes will be demolished to make room for the new development which will be completed in two phases. According to Rodgers, rent rates will be set between $395 and $1,595.  

“We’re looking forward to being able to do the second phase here and establish some affordable multigenerational housing on Old Vineyard Road,” Rodgers said.  

City Owned Parcels 

The proposals for the city-owned parcels being considered are from C2 Contractors LLC, Denton Construction Services, LLC, and Switzer Homes. For all the City-owned parcels that are acquired through the Affordable Home Development program, homeowners will sign a secured 15-year down payment assistance loan equal to the appraised value. A portion of the loans will be forgiven annually over the 15-year term of the loan.  

Once the homes are built, they will be subject to a 15-year affordability period and restrictions pursuant to the Housing Justice Act and the Affordable Housing Ordinance. All projects will be required to be completed within two years after the contract is signed.  

*C2 Contractors, LLC 

C2 Contractors is looking to acquire five $1 parcels from the City located on Liberia St., Pitts St., and Buick Street, all located in the East Ward. In addition to the lots, developers are also seeking $175,000 in gap funding from the City.   

Proposals for the lots include five single family homes that will have a set sale price that will not exceed $238,338. Plans include ranch style three-bedroom, two-bath homes that will be approximately 1,152 sq. ft. Home’s will also include a covered porch, fireplace, and energy efficient appliances. The total cost of the project will be $1.9 million. “I believe C2 will be a great asset to the community,” said McClam when discussing the proposal from C2 Contractors.  

“They have properties that they have done close by, in High Point, Greensboro. They have some commercial work they’ve done on A&T’s campus, so I think they will bring good work to the City of Winston-Salem.” 

*Denton Construction Services, LLC  

Denton Construction is asking for ten $1 lots in the East and Southeast Ward and $350,000 in gap funding to build tiny homes. The parcels are located on Alexander St., Glencoe St., Old Lexington Road, and Lyons St.  

Denton is planning to build 10 single-family studio homes for rent on Alexander St., Glencoe St., Old Lexington Road, and Lyons St. The one-bedroom, one-bathroom studio homes will be approximately 400 sq. ft. and will include covered porches, energy efficient appliances, washer and dryer, tankless water heaters, and customizable exteriors. 

When discussing the project, Steve McSwain with Denton Construction said the container homes they are looking to build are 12,000 pounds and all metal. The modular homes are built in China and shipped in 20 ft. containers that fold out into 400-square foot. homes.  

According to McSwain, once the homes are in place it will take about five days to finish construction. “We’re doing these for $35,000 per unit … all that money is going for the construction cost,” said McSwain when answering questions about the proposal.  

McSwain mentioned that when they were looking at the $1 lots, they purposely looked at the smallest lots that were available. 

“We’re able to do that because unlike building a traditional house … that will take about 60 people to build, we can do this with just 10,” McSwain continued. “It’s sustainable, it’s eco-friendly, its repeatable, it’s reliable … we can do 10 then another 10 in places traditional housing can’t go.” 

Although building tiny homes will be a new venture for Denton Construction Services, they will be partnering with BoxHouse, a company based in Utah that specializes in energy-efficient tiny homes. 

*Switzer Homes  

Switzer Homes, LLC, which is based here in Winston-Salem, is asking the City for seven $1 lots and $195,000 in gap funding. The lots are scattered throughout the North, Northeast, and East Wards, on Woodsong Lane, E. 14th St., E. 21st St., Ogburn Ave., Cayuga St., and N. Jackson Ave. Total development cost will be over $1 million.  

Proposals for the lots include seven single-family homes that will have a set sale price that will not exceed $240,000. Plans include three-bedroom, two-bath homes that will range between 1,347 sq. ft. and 1,521 sq. ft. They will also include two-car garages and energy efficient appliances. 

John Switzer, owner of Switzer Homes, said he has a track record of building affordable homes in Forsyth County. Switzer said he currently has a partnership with Habitat for Humanity, and he’s built 25 affordable homes in the area. “I have a substantial amount of experience in doing this,” Switzer said.  

While looking over the proposal submitted by Switzer Homes, Councilmember Vivian Joiner raised concerns about the proposed single-family homes not fitting in with the houses already in the neighborhood. When asked if he thought his plans fit in with the neighborhood, Switzer said he believed they will enhance the neighborhood.  

“It’s a great quality home. It will enhance the value of the neighborhood … it’s not blending with the neighborhoods, but it’s enhancing,” Switzer said.  

What’s Next: City Council Votes 

All of the proposals were approved unanimously by the Community Development/Housing/General Government Committee. The entire city council is expected to vote on the proposals during their meeting on Monday, May 5.  

Mayor Pro Tempore Denise ‘DD’ Adams thanked City staff and everyone who helped with the Affordable Housing Development program. Adams, who represents the North Ward, said it’s important that the City look at different types of housing because the need is there.  

“I think staff did a great job … you can’t just think we’re building housing for just one demographic or group of people. There are people that one-room studio (suits) … we need two-bedrooms … we need duplexes, we need condos, multi-family, we need single family,” Adams said.  

“We could channel our focus to only build homes for people who can own them, but the reality is that is not going to happen.”  

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