OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Raleigh City Council Work Session on Affordable Housing Plan Updates – April 15, 2025

City CouncilTuesday, April 15, 2025
BodyRaleigh, North Carolina
SessionCity Council
DateTuesday, April 15, 2025
StatusFILED
Video Record
0:00 / 1:06:23

Transcript — Verbatim
4:05

Oh, and there's the commands to those things.

4:14

So, the tackle.

4:24

So when they have the colours to the thumbs print, yeah.

12:01

Thanks everybody for coming for the work session, and I will turn it over to uh Emily Sutton with Housing and Neighborhoods to talk about affordable housing.

12:09

And I want you to say I have my laptop for humanity shirt on.

12:13

Love it.

12:14

Everyone deserves affordable home.

12:17

So we need those.

12:19

That's awesome.

12:21

Good morning.

12:23

Uh mayor, council.

12:25

Uh I'm here today to talk about our new roadmap for increasing housing affordability and ending homelessness in Raleigh to save taxpayer dollars downstream and to create a safe, vibrant, and healthy city.

12:36

My name is Emily Sutton.

12:37

I'm the housing and neighborhoods director for the city.

12:43

So today's conversation will start by reviewing the state of housing in Raleigh and the work we've done up to this point to address affordable housing and homelessness.

12:51

We'll also preview a home for every neighbor, which is our new affordable housing plan, along with a subset of that plan, which is our unsheltered homelessness response plan.

13:02

So now we'll talk a little bit about the state of housing in Raleigh.

15:00

So that includes people who are in shelter or transitional housing, living outside, in their cars, so places that are not meant for human habitation.

15:10

The way that the school system counts is a little bit different.

15:14

That is includes people who are at risk, also includes people who are doubled up, couch surfing, kind of things like that.

15:22

So their number is much higher.

15:24

Okay, thank you.

15:35

So while we've made a lot of progress in creating affordable units, in fact, we've led the state and much of the Southeast in building units through leveraging the low-income housing tax credit.

15:45

There's still a long way to go to meet the demand for housing and to ensure that everyone can actually access and stay safe and stable in housing.

15:56

At the extreme, the lack of affordability leads to homelessness.

16:00

In 2020, the U.S.

16:01

government accountability office found that nationally, for every $100 increase in rent, it equaled a 9% increase in homelessness.

16:11

And this is because at its root, homelessness is a housing problem.

16:15

It sounds obvious, but in practice, many of the strategies employed to address homelessness are actually temporary backstops that are in fact more expensive than focusing on housing focused solutions that we know are sustainable.

16:28

There are also concentrations and responses that look at symptoms and comorbidities such as substance use rather than focusing on housing solutions along with services.

16:39

And research shows that places with higher higher rates of homelessness don't have higher rates of substance use or mental health issues than the rest of the country.

16:48

It's that they have lower housing supply and lower housing costs.

16:53

So on the other hand, many places with exceptionally high rates of substance use and mental illness, like West Virginia and Tennessee.

16:59

They in fact have below average rates of homelessness because they just have softer housing markets.

17:06

Homelessness is like a musical game of chairs.

17:08

This is how we talk about it quite often.

17:10

If there are nine chairs and ten players and one player has a broken leg, when the music stops, the person with the broken leg will probably have no chair.

17:18

But the broken leg isn't the cause of the homelessness.

17:22

It's the fact that there are only nine chairs.

17:24

So if there were 10 chairs, the person with a broken leg and their disability would not matter.

17:30

They would still have a place to sit.

17:32

So we are at an important inflection point in the city.

17:35

What we do now can send us down one path or another to ending homelessness or continuing to manage the problem at extraordinary taxpayer expense.

17:47

There's also no zero cost option when it comes to homelessness.

17:51

Doing nothing costs people and the community actually more than it does to address and provide a sustainable solution.

17:58

And in Raleigh, unsheltered homelessness has doubled in recent years, and there has been a visible rise in the number of camps where people are sleeping outside.

18:08

The Raleigh Parks Department, along with the North Carolina Department of Transportation, reported spending more than 200,000 in a one-year period each just to clean up camps.

18:18

And none of that went towards permanent solutions.

18:20

It's just the cleanup.

18:22

Last November, the City of Dallas reported taxpayers pay more than 200 million dollars annually on homelessness-related costs like medical treatments, emergency room visits, emergency shelter, mental health care, incarceration.

18:38

And that's a $96,000 per person experiencing homelessness costs per year to taxpayers.

18:44

Local first responders, so our police, fire, and EMS are often in the front lines of homelessness, responding to calls from people in crisis or distress.

18:54

And these repeated calls place a strain on the emergency response system and divert limited resources from other public safety priorities.

19:02

A housing-focused response can ease the burden on first responders by reducing preventable emergencies and calls for services related to unsheltered homelessness.

19:12

By contrast, housing someone and connecting them to case management along with support services costs just 24 to $36,000 per year, which is less than half of what we currently spend managing homelessness.

19:26

And that $36,000 number per year is something we put together that's looking at paying actual market rent or above market rent.

19:35

So that puts folks in those units that are vacant right now.

19:40

So we can reduce the public cost of homelessness and lessen the strain on first responders by investing in housing solutions with ongoing supports.

19:53

So what are we doing?

19:54

Since homelessness is a housing problem, we're focusing on expanding affordable housing as a primary goal.

Discussion Breakdown — Share of Meeting
Affordable Housing█████████████████████████████████████████████54%
Homelessness███████████████████████27%
Procedural███████████13%
Public Health██2%
Public Engagement██2%
Engineering And Infrastructure1%
Land Use And Zoning1%
Summary of Proceedings

Raleigh City Council Work Session on Affordable Housing Plan Updates – April 15, 2025

During the 11:30 a.m. work session, the Raleigh City Council received a detailed presentation from Housing and Neighborhoods Director Emily Sutton on the city's progress and future plans for affordable housing and homelessness. The presentation covered the state of housing in Raleigh, the status of the 2020 housing bond, and introduced a new five-year plan titled "A Home for Every Neighbor" along with an unsheltered homelessness response strategy. Council members asked questions about production metrics, funding sources, program utilization, and policy alignment.

Discussion Items

  • State of Housing and Homelessness: Emily Sutton presented data showing that unsheltered homelessness has doubled in recent years. She cited a U.S. Government Accountability Office finding that for every $100 increase in rent, homelessness increases by 9%. She also noted that Raleigh Parks and NCDOT each spent more than $200,000 in one year on camp cleanup. A comparison was made with Dallas, which spends over $200 million annually on homelessness-related costs, while housing someone with case management costs $24,000–$36,000 per year.
  • 2020 Housing Bond Progress: The $80 million bond (the city's largest to date) is 75% committed or spent with one year of its five-year budget remaining. It has supported 1,100 affordable units, 100 households through home repair and buyer assistance, and site acquisition funds are expected to yield over 300 units. Councilmember Corey Branch asked about the number of new units approved versus built and the backlog. Staff will provide a detailed breakdown.
  • Eviction Prevention Clinic: A partnership with Campbell Law School has opened about 100 cases since August 2022, prevented 62 evictions, and provided legal advice to 29 clients. Every case represented in court has been won. The clinic also addresses non-legal needs via an NC State intern.
  • New Plan: "A Home for Every Neighbor": The five-year plan sets three goals: increasing affordable housing supply (target of 1,345 units by 2030), improving overall market affordability, and ending/preventing homelessness. The 1,345-unit target is based on recent production capacity and inflation-adjusted costs. Councilmember Jane Harrison questioned whether additional funding would be needed; staff confirmed that the bond is nearly exhausted and new funds will be required.
  • Unsheltered Homelessness Response Strategy: A community-wide planning initiative led by a 48-member steering committee, including people with lived experience, aims to achieve functional zero for unsheltered homelessness. No specific year was set, as it depends on resources. A consultant is facilitating the process with city funds.
  • Councilmember Questions and Clarifications:
    • Councilmember Mitchell Silver asked about the relationship between housing supply and affordable housing. Sutton explained that supply alone is insufficient; demand-side interventions are also needed. He also asked about streamlining development; Pat Young (Planning and Development) reported a 15% time savings (over three weeks) from process improvements, and noted that the comprehensive plan update will consider reducing discretionary approvals.
    • Councilmember Corey Branch inquired about the homeowner repair program utilization; Erica Brandt stated it is fully utilized but has some padding due to project pace. He also asked about the per-unit subsidy of $40,000 (city and county combined) and whether it will be updated to reflect rising costs; staff will provide a new analysis.
    • Councilmember Christina Jones asked about the payment-in-lieu fund and whether a flex fund exists for homelessness. Current payment-in-lieu funds go into the bond program income bucket. She also suggested that investing in homelessness (at $24,000–$36,000 per year) may be more cost-effective than down payment assistance ($60,000 per household).
    • Councilmember Mitchell Silver also asked about the NOFA for joint venture gap financing; Erica Brandt clarified it is citywide but subject to the city's affordable housing location policy, which has exemptions for transit proximity and rehabs.
    • Councilmember Jane Harrison raised the need for a metrics dashboard to reduce repetitive questions; staff agreed to build out the existing bond dashboard.
    • Mayor Pro Tem Stormie Forte asked about the next housing bond; the city manager's office is internally discussing whether to bring a housing bond, a transportation bond, or both, and will coordinate with the county to avoid voter fatigue. A clearer picture is expected by summer 2025.

Key Outcomes

  • Staff will provide council with detailed data on affordable units approved vs. built, the backlog, and a per-unit subsidy analysis updated for current costs.
  • The city will continue to develop the unsheltered homelessness response plan with community partners and will provide future work session updates.
  • The city manager's office will begin public engagement on the next bond referendum, with housing as a potential candidate.
  • No formal votes were taken during the work session.

Meeting Transcript

Oh, and there's the commands to those things. So, the tackle. So when they have the colours to the thumbs print, yeah. Thanks everybody for coming for the work session, and I will turn it over to uh Emily Sutton with Housing and Neighborhoods to talk about affordable housing. And I want you to say I have my laptop for humanity shirt on. Love it. Everyone deserves affordable home. So we need those. That's awesome. Good morning. Uh mayor, council. Uh I'm here today to talk about our new roadmap for increasing housing affordability and ending homelessness in Raleigh to save taxpayer dollars downstream and to create a safe, vibrant, and healthy city. My name is Emily Sutton. I'm the housing and neighborhoods director for the city. So today's conversation will start by reviewing the state of housing in Raleigh and the work we've done up to this point to address affordable housing and homelessness. We'll also preview a home for every neighbor, which is our new affordable housing plan, along with a subset of that plan, which is our unsheltered homelessness response plan. So now we'll talk a little bit about the state of housing in Raleigh. So that includes people who are in shelter or transitional housing, living outside, in their cars, so places that are not meant for human habitation. The way that the school system counts is a little bit different. That is includes people who are at risk, also includes people who are doubled up, couch surfing, kind of things like that. So their number is much higher. Okay, thank you. So while we've made a lot of progress in creating affordable units, in fact, we've led the state and much of the Southeast in building units through leveraging the low-income housing tax credit. There's still a long way to go to meet the demand for housing and to ensure that everyone can actually access and stay safe and stable in housing. At the extreme, the lack of affordability leads to homelessness. In 2020, the U.S. government accountability office found that nationally, for every $100 increase in rent, it equaled a 9% increase in homelessness. And this is because at its root, homelessness is a housing problem. It sounds obvious, but in practice, many of the strategies employed to address homelessness are actually temporary backstops that are in fact more expensive than focusing on housing focused solutions that we know are sustainable. There are also concentrations and responses that look at symptoms and comorbidities such as substance use rather than focusing on housing solutions along with services. And research shows that places with higher higher rates of homelessness don't have higher rates of substance use or mental health issues than the rest of the country. It's that they have lower housing supply and lower housing costs. So on the other hand, many places with exceptionally high rates of substance use and mental illness, like West Virginia and Tennessee. They in fact have below average rates of homelessness because they just have softer housing markets. Homelessness is like a musical game of chairs. This is how we talk about it quite often. If there are nine chairs and ten players and one player has a broken leg, when the music stops, the person with the broken leg will probably have no chair. But the broken leg isn't the cause of the homelessness. It's the fact that there are only nine chairs. So if there were 10 chairs, the person with a broken leg and their disability would not matter. They would still have a place to sit. So we are at an important inflection point in the city. What we do now can send us down one path or another to ending homelessness or continuing to manage the problem at extraordinary taxpayer expense. There's also no zero cost option when it comes to homelessness. Doing nothing costs people and the community actually more than it does to address and provide a sustainable solution. And in Raleigh, unsheltered homelessness has doubled in recent years, and there has been a visible rise in the number of camps where people are sleeping outside. The Raleigh Parks Department, along with the North Carolina Department of Transportation, reported spending more than 200,000 in a one-year period each just to clean up camps. And none of that went towards permanent solutions. It's just the cleanup. Last November, the City of Dallas reported taxpayers pay more than 200 million dollars annually on homelessness-related costs like medical treatments, emergency room visits, emergency shelter, mental health care, incarceration.

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