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. In addition, The Affordable Housing Funding Guide provides guidance on key terms and requirements of the Town’s affordable housing funding.  

Funding Application

On June 26, 2025, the Town released up to $4 million in funding for affordable housing activities. This funding release includes $3.5 million in 2024 affordable housing bond funding, $500,000 in 2018 affordable housing bond funding, and a portion of the local Fiscal Year 2026 funding allocated to the AHFP. The application period for this funding closed on July 31, 2025.