A large affordable housing rehabilitation project was recently completed. Located at 1500 Raleigh Boulevard, the Raleigh Millbank apartment complex provides 229 upgraded units for the city’s affordable housing stock.
It all started back in 2016, when Denver-based Steele Properties LLC responded to a Housing and Neighborhoods Department’s Request for Proposals to provide gap financing for developers applying for tax credits for affordable housing. Steele requested $2 million in City bond proceeds to help fund the acquisition and rehabilitation costs of the project. The company had already received an inducement approved unanimously by the Wake County Housing Authority for the bonds.
Given the growing popularity of Raleigh’s downtown area and the loss of affordable units being experienced, staff felt that preservation of the apartment complex, built in 1970, was important. They recommended the Steele Properties proposal, which City Council approved on April 18, 2017. Steele Properties also received about $20 million in tax-exempt bonds from the North Carolina Housing Finance Agency.
The renovation included new roofs, windows, HVAC systems, plumbing and electrical improvements, as well as new kitchens and bathrooms. During the internal renovation process residents were temporarily provided with hotel accommodation paid for by Steele.
The development has project-based vouchers and tenants continue to only pay 30% of their income for rent. It provides 115 two-bedroom and 114 three-bedroom units to individuals or families earning less than 60 percent of the Area Median Income (AMI).