TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
Jeffrey Morin, Housing Program Manager
DATE: September 28, 2026
RE:Title
Approve Affordable Housing Loan Extension Request - Eastside GreenTitle
end
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
GOAL II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
• Strategic Priority 3: Continue the City's commitment to revitalization efforts and housing needs
GOAL III: The City of Fayetteville will be a city invested in Today and Tomorrow.
• Strategic Priority 3: Continue the City's commitment to revitalization efforts and housing needs
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
• Objective 4.5: To ensure a place for people to live in great neighborhoods
• Objective4.6: To reduce poverty and homelessness
Executive Summary:
City Council is asked to extend the loan terms for Eastside Green for an additional 10 years at 2% interest with a balloon payment at the new maturity date of November 2037.
Background:
On August 20, 2026, United Management II, the property Manager for Eastside Green requested that the City consider extending its affordable housing loan of $100,000 from the current maturity date of October 2026 to a maturity date of November 2037 to synchronize it with the primary loan. Eastside Green has 60 units of affordable rental housing and is current on all loan payments.
Issues/Analysis:
Authorizing the loan extension will enable the City to draft updated legal documents securing its investment. Additionally, it ensures that rent at the property remain affordable. The complex currently provides two- and three-bedroom apartments priced below the maximum allowable rents for households at 40%, 50%, and 60% of the Area Median Income (AMI). Without this extension, United Management will be forced to refinance the complex, resulting in rent increases driven by the current high-interest-rate environment.
Budget Impact:
By extending this loan, the City will not receive an anticipated $100,000 in program income this year but will continue to receive the annual interest payments. The full loan amount will be paid at maturity in November of 2037.
Options:
• Authorize the extension of the affordable housing loan of $100,000 from the current maturity date of October 2026 to a maturity date of November 2037 and filing of amended loan documents.
• Do not authorize the extension of the affordable housing loan of $100,000 from the current maturity date of October 2026 to a maturity date of November 2037 and filing of amended loan documents.
• Direct staff to some other action
Recommended Action::Recommended Action
Staff recommend that City Council move to extend the affordable housing loan of $100,000 from the current maturity date of October 2026 to a maturity date of November 2037 and filing of amended loan documents.
end
Attachments:
Eastside Green Loan Extension Request Letter