The Raleigh City Council has signed off on up to $24 million in tax-exempt bonds to help build two affordable apartment communities that together will bring more than 320 income-restricted homes to the city. The vote clears the way for the Raleigh Housing Authority to issue the bonds on behalf of Fisher Grove in Southeast Raleigh and The Preserve at Gresham Lake in Northwest Raleigh.
The city’s own account of the action came with a correction. In a social media post, the City of Raleigh clarified that the council had authorized the housing authority’s issuance of up to $24,000,000 in bonds, not the larger figure initially stated, to finance and construct the two developments. Under North Carolina Housing Authorities Law, the Raleigh Housing Authority can only issue tax-exempt revenue bonds for developments inside city limits if the city council adopts a resolution consenting to the issuance — a step that, according to the City of Raleigh, creates no financial obligation or credit liability for the city itself.
Two Developments, Two Ends of the City
Fisher Grove is a 166-unit income-restricted apartment community being built by nonprofit developer DHIC at 401 Elders Grove Way in Southeast Raleigh, serving households earning between 20% and 60% of the Area Median Income, according to The Triangle Tribune. The project marks the final redevelopment phase of the historic Washington Terrace property in Southeast Raleigh, and the outlet reports it will include four residential buildings along with 8,000 square feet of commercial space set aside for small businesses and healthcare providers.
Across town, The Preserve at Gresham Lake is a 156-unit affordable apartment complex under construction by LDG Development at 3095 Gresham Lake Road in Northwest Raleigh. The complex, per the City of Raleigh, will consist of five three-story buildings situated near the 250-acre Durant Nature Preserve. The city previously committed $5,585,118 in total local gap financing across two separate decisions in May 2022 and January 2023 to enable the project’s construction.
Layered Funding Fills the Affordability Gap
Neither project relies on bond proceeds alone. Fisher Grove also secured a $4.9 million loan commitment from the City of Raleigh and $3.32 million from Wake County’s 2025 Affordable Housing Development Program, according to Wake County Government. To push affordability even further for lower-income tenants, the Raleigh Housing Authority awarded project-based vouchers to both properties, including 39 vouchers specifically designated for The Preserve at Gresham Lake…