DISTRICT: N/A
Duplex Village – Authorization of Loan and Land Lease for Affordable Rental Development
1932 New Bern Ave
East Raleigh | 3.91 Acres | 120 Units | Approved
City Council 1/6/2026
RX-5-GR with a Transit Overlay District (TOD) → Authorization of a $2,880,000 loan and an 80-year ground lease for a 120-unit affordable rental development | Approved
Raleigh City Council unanimously approved a $2,880,000 loan and an 80-year ground lease for Duplex Village, a 120-unit affordable housing development on city-owned land. Developer Blue Ridge Atlantic, in a co-developer partnership with the Raleigh Housing Authority (RHA), will build the 4-story garden-style project on a 3.91-acre site at 1932 New Bern Ave. The City acquired the six-parcel assemblage in April 2021 for $3,700,000 using proceeds from the 2020 Affordable Housing Bond. Staff rezoned the property in March 2024 to RX-5-GR with a Transit Overlay District (TOD) to prepare it for this type of development.
Council expressed strong support for the project's alignment with city goals, particularly its location along the future Bus Rapid Transit (BRT) corridor. Councilor Branch commended the effort, stating, "It's good to see a project like this come to fruition. A lot of people talked about bus rapid transit and what about affordability along the corridors, and this is us fulfilling those steps and those promises of that." Council's due diligence included questions about project density, design standards, and delivery timeline. Councilor Jones questioned the selection of the 120-unit proposal from the 14 submitted, asking, "were there some that offered more units than 120? And then what was your reasoning for not going with a higher unit count?" At-Large Councilor Jonathan Lambert-Melton confirmed the site's TOD status and emphasized the need for transit-supportive design, stating, "I just want to make sure that certainly projects that the city is facilitating on the corridor, that they will increase the walkability and access to all the resources that will hopefully be there soon." Councilor Patton inquired about the occupancy timeline. No community opposition was present at the meeting. Council made a motion for approval of the staff recommendation, which was seconded and passed with a unanimous vote.
U/ Finance
Total development costs are estimated at $37,153,358, or $309,611 per unit. The City of Raleigh provides significant financial support for the deal. Council authorized a gap financing loan of $2,880,000, sourced from 2020 Affordable Housing Bond funds, which calculates to a direct subsidy of $24,000 per unit. Blue Ridge Atlantic and RHA will enter an 80-year ground lease with the City for the 3.91-acre site at a nominal cost of $10.00 per year. The developer will utilize the 4% Low-Income Housing Tax Credit (LIHTC) program to generate investor equity. To ensure deep affordability, the project's operating budget will be supported by 35 Project-Based Vouchers (PBVs) administered by the RHA. This layered public subsidy structure makes the project financially feasible while locking in long-term affordability.
U/ Product
Blue Ridge Atlantic will construct a 120-unit, 4-story garden-style multifamily community. All 120 units are restricted as affordable rentals. The affordability mix serves a wide range of low-income households. Thirty-five units will be reserved for residents at or below 30% of the Area Median Income (AMI), supported by Project-Based Vouchers. Twenty-three units will be set at 50% AMI, 12 units at 60% AMI, and the remaining 50 units will be available to households earning up to 70% AMI. This structure ensures a mixed-income environment within a 100% affordable project.
U/ Infrastructure
This project is strategically located along the future New Bern Avenue Bus Rapid Transit (BRT) corridor. This infrastructure investment was a key driver for the City's acquisition and rezoning of the site, which now includes a Transit Overlay District (TOD). The TOD designation mandates a more urban, pedestrian-oriented design to support ridership and connectivity. This aligns with the Council's stated goal of creating dense, walkable, affordable housing options along its primary transit investments.
Developer: Blue Ridge Atlantic (https://www.blueridgeatlantic.com/)
Chris Eisenzimmer (CEO) Email: [email protected] LinkedIn
Owner: Raleigh Housing Authority (RHA)
Marchell Adams-David (City Manager, City of Raleigh) Phone: (919) 996-3050 Email: [email protected] LinkedIn
Staff Report: Item D.3