Item:
Title
Approval of Budget Ordinance Amendment No.26BCC007 Appropriating $1,500,000 of General Fund Fund Balance to support the Durham Affordable Housing Loan Fund
Body
Date of BOCC Meeting: August 11, 2025
Request for Board Action:
Agenda Text
The Board is requested to approve Budget Ordinance Amendment No.26BCC007, appropriating $1,500,000 of General Fund Fund Balance to support the Durham Affordable Housing Loan Fund (DAHLF). The County Board of Commissioners in FY 2024-25 approved an appropriation of $1,000,000 to support the DAHLF, but the funding was not spent or encumbered by the end of the fiscal year. This budget action re-budgets that $1,000,000 as well as an additional $500,000 for a total of $1,500,000 to support the fund.
The Durham Affordable Housing Loan Fund (Fund) is a revolving loan fund created in 2019 through a community roundtable process involving the Duke University's Office of Community Affairs, Self-Help, Durham County, the City of Durham, and members of the local housing development community. The initial contributions to the Fund have been loaned to affordable housing developers with zero defaults to date.
The Fund Managers and partner organizations recognize the need to expand the Fund and have set a goal to raise an additional $20 million to create a $30 million Fund. The City and County have been asked to loan $1.5 million to the Fund, and Duke University intends to convert its initial $2 million senior loan to top loss funds. Together, this $5 million contribution will leverage $15 million in new senior loans to provide $30 million for the Fund. Please see the AAF Supplemental for descriptions of top loss funds and senior debt.
In November 2024, the Board authorized loaning $1 million to the Durham Affordable Housing Loan Fund. This County commitment was instrumental in facilitating new conversations with community partners but was not sufficient for the Fund manager to seek senior debt funding from other partners. ...
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