Development Opportunities

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The City is committed to partnering with private for profit and not for profit developers on strategic development projects that align with City Council’s vision of economic growth and affordable housing. While local governments are not allowed to invest in private projects or provide public funds for private benefit, they may participate in encouraging private developments in a variety of ways that benefit the long-term health of the community.

The City is continuously developing programs and solutions to challenges that the local business, industry, real estate and environment creates. Ultimately, the City aims to establish proactive approaches that leverage public resources to solve the needs of business, industry, developers and investors.

Economic Development Opportunities

Tax Increment Grant (TIG) financing is a tool used by municipalities to assist with the financing of private development projects which create public benefits in areas identified by the municipalities as needing additional public and private investment and development. It is one of several financing tools available to the City of Fayetteville for use in creating such public benefits where the private market alone has not created similar benefits for the citizens of Fayetteville. Click to view the Tax Increment Grant policies and application.

Section 108 Loan Guarantee Program is part of HUD’s Community Development Block Grant (CDBG) program and provides communities with financing for economic development, housing rehabilitation, public facilities (infrastructure), and other physical development projects. It enables the City of Fayetteville to leverage its CDBG funds to secure low-interest loans for larger-scale initiatives that drive local economic growth and community improvement. Projects supported under Section 108 often aim to stimulate private investment, support local businesses, and create or retain jobs. It reflects the City of Fayetteville’s commitment to fostering inclusive growth, creating opportunities, and improving the quality of life in the City of Fayetteville. Click to view the Section 108 Loan Guarantee Program policies and application. Visit HUD's website to see what's possible using the Section 108 Loan Guarantee Program.

The Business Assistance Loan Program offers down payment assistance or gap loan financing to assist new and existing small businesses. For more information, click here.

For more information call 910-433-1590 or email: EconCommDev@FayettevilleNC.gov

Affordable Housing Opportunities

Single-Family Housing Development Program
The City of Fayetteville’s Affordable Single-Family Housing Development Program is designed to expand affordable homeownership opportunities by providing development incentives to qualified for-profit and non-profit organizations. The program’s primary goal is to support the development of in-fill housing that serves families earning at or below 80% of the Area Median Income (AMI), in accordance with HUD’s HOME Investment Partnerships Program (24 CFR Part 92). This includes the provision of interest-free construction financing to developers and forgivable down payment assistance to qualified buyers (not to exceed $50,000).

Click here to view answers to submitted questions regarding the Single-Family Housing Development Program.

Rental Housing Development
The City of Fayetteville's Affordable Rental Housing Development Program is available for qualified developers to submit proposals for the new construction or acquisition and/or rehabilitation of multifamily or single-family rental units. Rental units assisted with City funds must be affordable to families, individuals, and/or the elderly with annual incomes at or below 80% of the area median income (AMI). Applications must be submitted through the Neighborly Application Portal (see below).

9% Low Income Housing Tax Credit Financing
The City of Fayetteville will, from time to time, make funds available for gap financing exclusively for rental projects that will then seek a Low-Income Housing Tax Credits (LIHTC) award from the North Carolina Housing Finance Agency (NCHFA). It is the City’s goal to assist developers who have the best chance of receiving a LIHTC award and it is the City’s intent to award funds to as many developers as practical to increase our community’s chances of receiving a LIHTC award. Applications must be submitted through the Neighborly Application Portal (see below).

9% Low Income Housing Tax Credit Program Guidelines

North Carolina Housing Finance Agency (NCHFA)
Additional State resources can be found here with the North Carolina Housing Finance Agency, which offers financing to help develop privately owned affordable housing rental units for low income North Carolinians.

Neighborly Application Portal