TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
Jeffrey Morin, Housing Program Manager
DATE: November 24, 2025
RE:Title
Authorize Central Park Villas Affordable Housing Contingent Loan CommitmentTitle
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COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
• 4.5: To ensure a place for people to live in great neighborhoods
• 4.6: To reduce poverty and homelessness
Executive Summary:
City Council is asked to authorize the City Manager to sign a contingent loan commitment letter and subsequent loan documents in the amount of $2,883,811 to support the construction of Central Park Villas, a proposed 84-unit garden-style affordable housing community. The developer has sent the City an Option to Purchase Agreement for the northern portion of the City’s catalyst site on Murchison Road to be used as the location of this project. Funding for the loan will be provided from Home Investment Partnership Funds (HOME) and the Housing Opportunity General Obligation Bond in the amounts of $1,000,000 and $1,883,811, respectively. This loan commitment will be valid until May 31, 2026, with a six-month extension allowed at the City Manager’s discretion.
Background:
JBS Developers, LLC is a private developer proposing to construct an 84-unit multi-family community, including five (5) HOME rental units. The proposed location of this project is vacant property owned by the City, located at the southern end of Murchison Road and surrounded by Bruner Street, Greensboro St, and MLK Jr Freeway. The developer is requesting a loan of $1,000,000 at 1% interest with a term of 40 Years, interest only from HOME funds and a loan of $1,883,811 at 2% interest with a term of 40 Years, interest only from the Housing Opportunity General Obligation Bond.
The proposed development involves the new construction of 84 units in a revitalization area of Fayetteville. The development will include ten (10) one-bedroom units, forty-four (44) two-bedroom units, and thirty (30) three-bedroom units, as well as a leasing/community building. The proposed location for the project is the 6.32 +/- acres of the northern portion of the catalyst site, currently owned by the City. JBS Developers and the Fayetteville Metropolitan Housing Authority (FHMA) have sent the City an Option to Purchase Agreement for the land in the amount of $545,000, based on an independent appraiser's opinion of the fair market value of the parcels identified for this project.
Issues/Analysis:
The loan commitment letter will be contingent upon approved environmental reviews and a 4% Low Income Housing Tax Credit allocation from the North Carolina Housing Finance Agency and be used to draft the legal documents to secure the City’s investment. These documents will be executed at loan closing where the City will be represented by Banks Law Firm as outside legal counsel. The loan commitment is also contingent upon the subsequent approval by Council to sell the requested parcels of the catalyst site to JBS Developers and the FMHA.
Budget Impact:
The City of Fayetteville annually receives entitlement funding from the HOME Program which currently has approximately $6M with approximately $4.8M committed to projects reviewed by City Council of which $1,000,000 would be dedicated to this project. The additional $1,883,811 would be allocated from the $12M Housing Opportunity General Obligation Bond approved by voters in November of 2022.
Options:
• Authorize a contingent loan commitment letter and subsequent loan documents in the amount of $2,883,811 from HOME and Housing Opportunity General Obligation Bond Funds to Central Park Villas.
• Do not authorize a contingent loan commitment letter and subsequent loan documents in the amount of $2,883,811 from HOME and Housing Opportunity General Obligation Bond Funds to Central Park Villas and provide additional direction to staff.
• Direct Staff to some other action.
Recommended Action::Recommended Action
Staff recommends that Council move to authorize a contingent loan commitment letter and subsequent loan documents in the amount of $2,883,811 from HOME and Housing Opportunity General Obligation Bond Funds to Central Park Villas.
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Attachments:
Central Park Villas Presentation