Raleigh Housing Authority seeks Cary approval to buy 340-unit apartment complex

The Raleigh Housing Authority is seeking Cary’s approval to buy Amberwood at Lochmere and preserve all 340 apartments as affordable housing for at least 30 years. The deal would prevent potential rent hikes but would likely cost Cary and Wake County about $219,000 a year in property-tax revenue.

The Raleigh Housing Authority’s effort to buy an apartment community in Cary requires Cary officials to weigh affordable housing preservation against the loss of property-tax revenue.

The proposal is expected to come before the Cary Town Council on Thursday.

Other WRAL Top Stories

Amberwood at Lochmere is a 340-unit apartment complex on Eclipse Drive. Because the Raleigh Housing Authority (RHA) is based outside Cary, state law requires the town council to authorize it to operate within Cary’s jurisdiction before it can exercise its full authority as a housing agency there.

In a letter from the Cary town manager’s office, town staff generally supported the request, saying the purchase would be “consistent with several Imagine Cary Community Plan and Cary Housing Plan goals, including pursuing regional partnerships to meet housing needs, maintaining high-quality neighborhoods [and] encouraging the provision of affordable dwellings.”

The resolution would allow RHA to operate as a housing authority in Cary. It would not make the town a party to the purchase, require Cary to take on debt or constitute a zoning or development approval.

Amberwood at Lochmere is currently owned by Terracap Management LLC and is being marketed for sale. On the complex’s website, a 600-square-foot, one-bedroom apartment has a base rent of $1,286 per month.

The property is assessed at about $64.5 million and currently generates roughly $219,250 a year in Cary property-tax revenue. If RHA completes the purchase, all 340 apartments would be restricted to low- and moderate-income households for at least 30 years.

Approving the request would help preserve the complex as affordable housing, but Cary and Wake County would likely lose the property-tax revenue it generates because housing authorities generally receive tax exemptions under state law.

If Cary rejects the request, RHA could still pursue the purchase but would not qualify for the housing-authority tax exemption within the town. RHA has said that the exemption is critical to making the purchase financially viable while keeping the apartments affordable.