Affordable Housing Crisis in Davidson County Part 2: Stagnant supply and the struggle for solutions
Lexington's affordable housing crisis: Part 1 public housing — DavidsonLocal.com
The Lexington Housing Authority (LHA) provided a written response to Davidson Local, outlining several aspects of its operations and addressing concerns raised in previous articles. While LHA’s response offers insight into its functions, there are key issues that highlight ongoing challenges within the agency and the broader housing crisis in Davidson County.
Prior to 2015, the agency managed 268 public housing units with a staff of over 20 employees. After the RAD (Rental Assistance Demonstration) conversion, however, the staff was reduced to just seven employees. While this staff reduction is understandable given the shift in operations, the ongoing issues with application processing and available housing units raise questions about whether the staff cuts are the root cause, considering the agency has significantly reduced its role to primarily processing applications. The agency has struggled to keep up with the increasing demand for housing assistance, which could be partially attributed to these staffing levels, though they also point to decisions at both the city and county levels, which have also contributed to the current housing crisis.
Many have observed a renewed public effort to address the affordable housing crisis in Davidson County but question the sense of urgency for families impacted. Residents have long voiced concerns about rising rents and limited housing options, prompting increased attention from local leaders and organizations. However, some residents, particularly those who fear retaliation, feel that tangible improvements in services have not yet materialized. Despite these concerns, some of which were raised during a lawsuit involving the previous administration, the Lexington Housing Authority (LHA) has stated that it is committed to transparency and professionalism in its operations.
LHA also provided information about its governance, including the current board structure. They explained that the agency operates under a charter and bylaws, with five Board Commissioners, as outlined by North Carolina General Statute §157-5. However, the LHA board is currently operating with a vacant seat after the death of a board member, and the city has failed to reappoint a new member. This absence has led to concerns about the board’s ability to adequately represent the community and ensure accountability. While the agency maintains that board appointments are made publicly and transparently, the lack of a fully staffed board could be contributing to delays in addressing key housing issues.
Rick Mack, the LHA Board Chair, stated, "The key to 'solving' the affordable housing issue is for everyone to pull together and work at fixing the problem. First off, the number of houses being built in the country has not kept pace with the demand, leading to prices skyrocketing. HUD’s decision, whether due to lack of finances or the shift to RAD, only adds to the lack of housing stock across the country. For better or worse, Lexington was the first housing authority to jump on the Rental Assistance Demonstration (RAD) train, which all housing authorities are being encouraged to eventually transition to."
Mack went on to discuss potential solutions, suggesting that LHA could benefit from finding its own way to finance and build housing. "LHA has applied for several grants, and hopefully, we will hear back positively from one. From my perspective, here are some solutions that would be extremely helpful if the city passed ordinances requiring anyone building houses in town to pay a small percentage that would be set aside to build affordable housing, or a small tax on any real estate sold in the city limits. Even a half a percent would yield a surprising amount. Also, any multi-family unit apartments could have a small percentage of them set aside for housing choice vouchers."
He concluded, "There are no easy solutions or immediate fixes. But with everyone working together, we can ease some of the housing crisis pain points in our own backyard."
Additionally, LHA mentioned that they have not reopened their office to the public due to a shooting incident on Jamaica Drive a few years ago. While safety concerns are valid, some residents have taken issue with being defined as living in dangerous environments. Davidson Local reached out to local law enforcement for a statement. According to NeighborhoodScout, the chance of becoming a victim of a violent crime in Lexington is 1 in 216, and the chance of becoming a victim of a property crime is 1 in 32. While these rates are higher than the national average, they do not necessarily indicate that the entire community is unsafe.
LHA reports that 620 of the 789 vouchers they administer are currently in use, with 54 voucher holders still searching for housing. The agency notes that finding affordable housing should be a primary focus and requires citywide support to develop more housing to meet the community’s needs. The waiting list for housing is currently moving at a pace of up to two years, with some applicants facing a five-year backlog. According to HUD, housing choice vouchers can be issued to allow residents to live in other suitable locations, which may provide more flexibility for voucher holders who are struggling to find housing in the area.
When contacted, several community leaders asked, "What is affordable housing?" One developer called it “a stall tactic” by city officials who don’t want to investigate the crisis deeply. According to HUD, affordable housing is defined as housing where an occupant pays less than 30% of their gross income for housing costs and utilities. For low to moderate incomes in Davidson County, this definition is particularly relevant as residents struggle with the gap between income levels and housing availability.
The North Carolina Housing Finance Agency has created a fact sheet for each county, highlighting the challenges many face in finding affordable housing. In Davidson County, the hourly wage needed to afford a Fair Market Rent apartment is $17.94, which is 2.5 times the minimum wage. This means that no one earning minimum wage, working full time at only one job, can afford a 1- or 2-bedroom apartment at Fair Market Rent. Fair Market Rent for a 2-bedroom unit in Davidson County is $933 a month, which requires an income of $37,320 per year to afford. The Housing Wage across North Carolina varies, with some counties seeing housing wages up to 5 times higher than the minimum wage. The increasing cost of living in the state continues to exacerbate the affordable housing issue.
Development of affordable housing continues to be a key issue across Davidson County. The City of Thomasville has recently resurfaced a proposal focused on affordable housing development, identifying Davidson County Home Solutions as the only qualified agency for the county-owned lots obtained through foreclosure. Notably, Habitat for Humanity and small businesses were not included in the development proposal, which is set to be voted on June 19th. Home Solutions of Davidson County, a nonprofit agency, has been highlighted for its role in addressing affordable housing needs. However, according to their website, the agency has developed fewer than 10 affordable housing units in the past decade, raising questions about whether the county is doing enough to tackle the growing demand for affordable housing. The June 19th vote will likely determine whether this proposal adequately addresses the region’s housing crisis or if further collaboration and larger efforts will be required.
While there is a renewed public effort to address the affordable housing crisis in Davidson County, challenges remain. The limited amount of affordable housing stock and the backlog of applicants highlight the need for increased development and support. Additionally, concerns about office accessibility and safety should be addressed to ensure that all residents have equal access to services. Experts say that collaboration between government, nonprofit, and for-profit developers is key to finding solutions..
*Editor’s note: Antionette Kerr is the former executive director of Lexington Housing Community Development (now Home Solutions of Davidson County) and the former Vice Chair of The North Carolina Housing Coalition.
