‘Where would I go?’ Project could replace some of Chapel Hill’s last affordable apartments

Victory Washington doesn’t know where she and her son will end up if their Ephesus Church Road apartment, a short walk from Chapel Hill shopping centers, schools and bus lines, is replaced with more expensive housing.

Washington landed at the Kings Arms Apartments about 10 years ago, after her family was displaced by redevelopment in Brooklyn, New York. She works on UNC’s campus, and her adult son, who is “not fully capable of living on his own,” works at Silverspot Cinema.

They are already struggling after last year’s $230 rent hike, to $1,200 for a two-bedroom apartment built over 50 years ago, she told the Chapel Hill Town Council on Wednesday. Newer apartments are renting for nearly twice that amount, according to online listings.

Now Phillips Management Group, which owns Kings Arms, wants to replace 65 lower-cost apartments with 212 new apartments.

The Reserve at Blue Hill plan would keep about 31 apartments affordable for tenants earning 65% to 80% of the area median income.

That’s roughly $46,000 to $56,600 a year for a single person, or $65,700 to $80,800 for a family of four.

“We’ve worked in the community for the last 10 years. We lived at the same place for the last 10 years. Where would I go? What would I do?” Washington asked. “We don’t make that kind of money to afford whatever Kings Arms is offering us.”

Mayor Pam Hemminger and Town Council members agreed, telling architect and project representative Richard Gurlitz to come back with a better plan if an official application is submitted.

The concept plan is only a rough outline of how the property might be developed, and the council does not vote on concept plans. An official application would trigger additional public hearings and a council vote.

Neighbors say keep trees, fix flooding

The reality is people are moving to the Triangle, and at least several people apply every time an apartment opens up in Chapel Hill, Hemminger said. The town needs more housing to serve the people who work here, she said.

“There may be a different way to go about this whole project ... but (I’m) not pleased with what was presented here at all as far as taking care of community, creating a better sense of place, even aligning with Complete Community,” Hemminger said.

The 7.6-acre Reserve project lies just outside the town’s Blue Hill District, where projects that meet district design guidelines only need town manager and Community Design Commission approval. The site has a driveway off the Ephesus Church Road roundabout and is across the street from The Hartley apartments, which replaced the formerly affordable Park Apartments.

The project would require the council to approve a conditional zoning, allowing construction of a taller building at twice the current density than is now permitted. It would add 319 parking spaces under the building and in surface lots, plus amenities, including a dog park, play area and pool, and community spaces where a food truck could park and people could gather.

The developer wants to keep as many mature trees as possible and create stormwater storage and filtration where none has existed for 50 years, Gurlitz said.

Hamlin Park neighbors next door said stormwater is a key concern. They shared photos and a video of muddy water flowing across grass, a pool and a parking lot. There have been four flash floods in the last 15 months, Clarence Andrews said.

The owners of Kings Arms have not talked with them, but they would like to see pavement and rooftops limited, said Sara Henderson, a Hamlin Park resident and vice president of its homeowners association. They also want to see trees between the properties preserved and an upgraded drainage system, she said.

Replacing affordable apartments

But the biggest issue for Kings Arms residents, neighbors and council members is losing more affordable housing. Despite the town’s years-long efforts and millions of dollars in subsidies and projects, housing at modest income levels remains a critical need.

The project could be better in terms of its size, parking, and how it meets the town’s Complete Community goals, particularly in regard to housing for everyone, Council member Jessica Anderson said. Keeping people in their homes is key to doing the project, she said.

“There are ways to redevelop and continue to include people in the community, and these are folks that we keep saying are important in this community, that they keep our community running, and that we want them to feel welcome,” Anderson said. “Well, I think the way that we ensure that they feel welcome is that we make sure they still have a home here.”

Mayor Pro Tem Karen Stegman suggested adding townhomes and cottage courts, along with more green and recreational space. Otherwise, the developer shouldn’t bring back the plan, she and Council member Paris Miller-Foushee said. Council member Adam Searing agreed, suggesting the developer work with an affordable housing nonprofit to preserve affordable housing for the future.

Council member Michael Parker suggested relocating the tenants during construction and letting them return to the new apartments.

Phillips Management Group partner Jeremy Rydberg, founder of Evergreen Asset Management, told The News & Observer this year that Kings Arms tenants could get help looking for new housing and with moving expenses.

The town tried working with the Park Apartments across the street to relocate residents without much success, Hemminger said Wednesday, because there weren’t enough affordable apartments available.

“They need help figuring out where to go,” she said. “It’s not just like they can go somewhere else.”

The Orange Report

Calling Chapel Hill, Carrboro and Hillsborough readers. Check out The Orange Report, a free weekly digest of some of the top stories for and about Orange County published in The News & Observer and The Herald-Sun. Get your newsletter delivered straight to your inbox every Thursday featuring stories by our local journalists. Sign up for our newsletter here. For even more Orange-focused news and conversation, join our Facebook group "Chapel Hill Carrboro Chat."