Charlotte Housing Fund Reaches $102M To Help 5,000 Families Access Affordable Apartments

The Housing Impact Fund pulled in $102 million during its third round of fundraising to purchase and fix up apartments for families earning between 30% and 80% of the area median income. This serves families of four making under $33,650 up to $89,750.

Private companies gave money to the fund. Truist Bank contributed. So did Atrium Health, Bank of America, First Horizon Bank, Honeywell, Huntington National Bank, Leon Levine Foundation, PNC Bank, and Regions Bank. How much each gave wasn't shared.

Erskine Bowles and Nelson Schwab started the fund in 2020. Mark Ethridge runs it. He's president of Ascent Housing.

The fund brought in $58 million in its first wave in 2020. That grew to $67 million by 2023. Since 2020, the fund has bought 11 apartment buildings with close to 2,000 units, serving about 5,000 low- to moderate-income residents.

"We've been able to buy properties that are in strong areas that are close to jobs, light rail stations, zoned for Myers Park High School, always within a half mile of a full-service grocery store," Ethridge said, according to The Charlotte Observer. "We're able to move quickly and serve lower AMIs."

Over 5,500 people experienced homelessness at some point during the 2023-24 fiscal year in Charlotte and Mecklenburg County. That's a 6% jump from the end of the 2023 fiscal year, according to the county's State of Housing Instability and Homelessness report released in February.

Between 2015 and 2024, more than 77% of the county's low-cost housing vanished. Redevelopment took some. Rising property values took more. Construction costs climbed, and rents went up. The fair market rate for a one-bedroom in the metro hit $1,647 as of last year — a 16% jump from 2024.

The fund focuses on what experts call naturally occurring affordable housing properties. These are older rental buildings that stay affordable without subsidies or federal programs. Instead of letting private developers buy these buildings, renovate them and raise rents, the fund helps Ascent buy and keep affordable rates.

The fund worked with the city and county to create rental subsidies using 100% of its property taxes. About 560 apartments have been set aside for qualifying residents who pay an average of $336 in rent.

The new round of money will target 1,500 units to serve 5,000 families. Two properties are under consideration for purchase. Ed Weisiger, Betsy Fleming, and Jamie McLawhorn joined the leadership team, working pro bono.

The fund celebrated its fundraising at Lake Mist Apartments off Old Pineville Road — its first acquisition. Ascent bought the 144-unit property in 2020 for $18.5 million.