TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, Director of Economic and Community Development
Jeffrey Morin, Housing Program Manager
DATE: August 11, 2025
RE:
Title
Authorize West Cumberland Apartments, Phase 2, Affordable Housing Loan Commitment
end
COUNCIL DISTRICT(S):
Council District(s)
District 7
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 approve the issuance of a Loan Commitment Letter in the amount of $1,000,000 for the development known as West Cumberland Apartments, Phase 2. This commitment will be good until August 11, 2026, with a six-month extension allowed at the City Manager's discretion.
West Cumberland Apartments, Phase 2 is a 72-unit affordable housing community, which will include five (5) HOME-assisted rental units
Background:
SEML Development, LLC., a private developer, is constructing a 72-unit affordable housing community, which will include five (5) HOME-assisted rental units. The project site is a currently vacant parcel located near 8103 Raeford Road, and this phase represents a continuation of an existing development.
The funding request of $1,000,000 would be provided from the City's annual allocation of HOME funds. The loan would carry a 1% interest rate and be fully amortized over 20 years.
On April 22, 2024, City Council approved the 2024-2025 U.S. Department of Housing and Urban Development (HUD) Annual Action Plan (AAP), which included the issuance of a conditional commitment letter for this project. The commitment included $600,000 from HOME Investment Partnership funds and $400,000 from HOME-ARP to support the project's Low-Income Housing Tax Credit (LIHTC) application to the North Carolina...
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