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: January 12, 2026
RE:Title
Authorize Aubrey Hills Apartments Affordable Housing Loan SubordinationTitle
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COUNCIL DISTRICT(S):
Council District(s)
District 4
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
* Objective?4.6: To reduce poverty and homelessness
Executive Summary:
Aubrey Hills is a 32-unit garden-style apartment community for families located at 148 Horseshoe Road that is currently under development. City Council is asked to authorize the subordination to a new lender and execution of updated loan documents.
Background:
Halcon Development, LLC. is a private developer constructing a 32-unit community and producing eleven (11) HOME rental units. The property is a vacant parcel located at the southern end of Horseshoe Road off Yadkin Road. Funding in the amount of $2,145,000 has been allocated from the City's annual allocation of HOME funds, the development requires a 2% interest loan calculated to be repaid over 30 years with a balloon payment expected at year 20.
At the April 3, 2023, Work Session, City Council reviewed information about this project as a 52-unit development. At the April 22, 2024 City Council Regular Meeting, City Council approved the issuance of...
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