Raleigh breaks ground on first affordable cottage court project
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When he was growing up, LeVelle Moton, now the head basketball coach at N.C. Central University, wasn't allowed to go to the park that now bears his name on Lane Street east of downtown Raleigh.
- His mother thought it was too dangerous, and an area known for scoring drugs. "This was no place for a 10-year-old kid to be trying to thrive and survive," he said.
Why it matters: It's a much safer area now, but due to its presence near downtown, the real estate in the historically Black Idlewild neighborhood has skyrocketed in value and priced out many lower-income residents.
- Moton is hopeful, though, that a new real estate partnership he is part of will help existing residents benefit from the area's growth.
Driving the news: On Monday, Moton's real estate firm, Raleigh Raised; the Raleigh Area Land Trust (RALT); and the city of Raleigh broke ground on the Cottages of Idlewild at 907 E. Lane St.
- The project will include 18 units of affordable housing, the majority of which will be for-sale, in the style of a cottage court, where a collection of homes are built around a shared green space.
- That style of construction was only legalized by the city council in 2020.
State of play: The project is several years in the making, after the city decided in 2021 to set aside 1.2 acres of city-owned land for affordable housing. It's notable for being one of the first major projects led by RALT, which was founded in 2019.
- RALT's land trust model differs from some affordable housing programs in that it will retain ownership of the land, so that it can cut costs for the buyer.
- In turn, buyers will earn a 99-year lease that is renewable and inheritable. Buyers can sell the house, but its price is restricted by the agreement to ensure permanent affordability.
- The groups will work with DHIC Homeownership Center to help find first-time homebuyers.
By the numbers: The Cottages of Idlewild will be for those making 30% to 80% of the area's median household income, which in Raleigh falls between $39,800 to $104,200 annually for a family of four, according to RALT.
- The cottages will sell for between $145,000 to $215,000, depending on size and the buyer's income.
- Rent for a one-bedroom unit will be as low as $519 per month.
What they're saying: Moton said he hopes the partnership is just the start in creating more affordable units in Raleigh and that the county and city can find more opportunities like this.
- "I don't think we have any more time to wait. The 'G-word,' gentrification, has hit our communities," Moton said. "There's not a lot of land that's left that people haven't developed. ... This is just a start, and hopefully people can see the value of a public-private partnership coming together."
What's next: RALT is not the only land trust organization in the Triangle, but it is the youngest. Existing ones operate in Durham and Orange County.
- RALT hopes to have 40 units operating under its trust model by the end of next year, stretching from Raleigh to Apex, with a goal of 100 units by 2028, according to Kevin Campbell, RALT's executive director.
- Campbell said his organization has a "high sense of urgency" in adding units because of rising prices. "It makes a difference whether you bring houses online this year or next year."
The big picture: The need for affordable housing is severe, with Wake County's own estimates putting the county's affordable housing gap at some 66,000 units, and the number of people experiencing homelessness increasing.
