Joint venture, $500,000 to bring affordable housing to Sanford

Apr. 14—Three agencies are collaborating in a $500,000 venture to provide more affordable housing in the Sanford area.

Dogwood State Bank and the Cape Fear Collective are joining with Brick Capital Community Development Corp. of Sanford in the venture that over five years is expected to deliver more than 30 new affordable homes, a news release said.

"Brick Capital has been building affordable homes for families in Lee County for over 30 years, and the need for us to build more homes has always exceeded our capacity," Kerry Bashaw, Brick Capital's executive director said in the release. Through this partnership, we are able to scale up our current efforts, which are especially needed in this housing market that has priced out so many homebuyers."

Dogwood Bank is providing the money and working with CFC to construct the homes, Bashaw said.

"Dogwood is excited to partner with CFC on providing affordable housing in Lee County," Steve Jones, the bank's CEO, said in the release. "As a community bank headquartered in North Carolina, we are dedicated to supporting our communities and providing invaluable resources that extend beyond traditional banking opportunities. This partnership further solidifies our commitment to making a difference in the communities that we serve throughout North Carolina."

Brick Capital strives to increase wealth in individual families and the greater community by creating new affordable housing for low- to- moderate income families and developing and creating supportive housing for people with disabilities and victims of domestic violence and sexual assault, the release said.

"Brick Capital has been building affordable homes for families in Lee County for over 30 years, and the need for us to build more homes has always exceeded our capacity," Bashaw said. "Through this partnership, we are able to scale up our current efforts, which are especially needed in this housing market that has priced out so many homebuyers."

CFC works to find investors, such as banks, who want to invest in projects to improve neighborhoods. The organization uses data to determine the need. The Collective's interim CEO, Meaghan Dennison, said partners like Brick Capital that are on the frontlines of building, preserving and supporting affordable housing are ideal partners for Cape Fear Collective's social impact investments.

The bank supports the "infusion of capital" and then "allows experts in the sector, like Brick Capital, to continue to do the great work they do each and every day," Dennison said.

Brick Capital has been working to develop a subdivision on a 16-acre tract that was acquired from the City of Sanford. The site is in the area of Garden Street and Washington Avenue across from Horton Park, according to Bashaw.

Plans are to build 45 single-family dwellings and a 16-unit apartment complex on the land, Bashaw said.

Grading and site preparation work is scheduled to begin this summer with construction to begin in the fall.

"We are very excited to break ground on this project," Bashaw said. "It has been planned and discussed for the past two years and couldn't come at a better time when affordable housing is so desperately needed."

A management committee that includes Dennison, Bashaw and a third member approved by both CFC and Brick Capital will assist in the oversight of the deployment and tracking redemption in five years, the release said.

Funds from sales of the house will be returned to the initial $500,000 account to provide future investment in other projects or to fill funding gaps related to affordable housing in Lee County, the release said.

The houses built through the program will be sold significantly below market rate and will benefit families who fall below 80% of Sanford's area median income of $61,000, according to Bashaw. Brick Capital can also assist qualified buyers with up to $30,000 in down payment assistance through the North Carolina Housing Finance Agency's Community Partners Loan Pool program.

"This joint venture with Brick Capital is a great first step in expanding the social impact investment model at Cape Fear Collective to parts of North Carolina outside the Cape Fear region," Dennison said. "Affordable housing is an issue not unique to the Cape Fear region and we're pleased to play a small role in increasing access to affordable housing in Lee County due in full to a partnership with Brick Capital."