How a new nonprofit plans to ease Charlotte's housing crisis
A new nonprofit backed by influential Charlotte leader Hugh McColl is buying land across the city to build affordable homes for teachers, first responders, healthcare workers and others locked out of homeownership.
Why it matters: Ascension Community Development Corporation 's mission is to create opportunities for moderate-income families to own homes and build generational wealth.
What they're saying:"We truly believe in creating accelerated generational wealth," says James Scruggs, founder and local real estate developer. "And the way that we see doing that — the easiest and the fastest — is to do a mixed-income community because, quite frankly, I think those communities are more sustainable."
The big picture: Charlotte's housing affordability crisis continues to worsen as mortgage rates remain high.
A household needs an estimated income of $107,183 a year to afford a home in Charlotte, according to a recent Redfin report. That's up from 2013, when the necessary income was $37,573.
The starting pay of a Charlotte-Mecklenburg Schools teacher is $48,637. CMS has begun planning a $30 million project to build a neighborhood for teachers, but it will take years and accommodate only about 100 educators.
Driving the news: Ascension recently closed on its first land purchase in the Freedom Drive area. The community, called The Legacy at Paw Creek, will consist of 89 townhomes, duplexes and triplexes.
70% of the units will be market rate.
30% will be affordable for households earning 80% of the area median income.
How it works: The nonprofit will offset its losses on attainable homes through market-rate sales. But you won't be able to tell the difference between the two types of properties, Scruggs says.
Ascension will offer workshops on homebuying, financial literacy and home maintenance. It'll also have property tax relief programs to prevent residents from being priced out as values increase.
Ascension is partnering with other nonprofits to build a pipeline of potential homeowners.
Between the lines: McColl — the former CEO of Bank of America and one of Charlotte's most powerful leaders — is a partner in the nonprofit and a member of the initial five-person board. McColl has been a mentor to Scruggs since 2019, Scruggs says.
"Ascension is more than a moment in time," McColl said in a press release. "It is a movement that will shape the future of affordable housing and wealth-building in our region."
What's next: After securing rezoning, Scruggs expects to break ground on The Legacy at Paw Creek late this year.
Ascension is pursuing another project in west Charlotte that could be 150 to 175 single-family houses and townhomes. It's also eyeing a potential land purchase, near UNC Charlotte, which would hold 60 townhomes.
The amount of attainable units in each development will range roughly from 20% to 50%, depending on the land and other costs.
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