Morrisville is launching  a new program to help local government employees and teachers afford rental housing, according to Josh Michael, a member of the town’s planning staff. 

The three-year pilot program will initially be open only to Town of Morrisville employees, Wake County employees, and teachers and staff in Morrisville schools, Michael said during a presentation to town council members Thursday night. The program offers money to help lower the cost of monthly rent, as well as cover security deposits for people who are moving into Morrisville. 

Funding is limited, with only about $150,000 available to applicants each year. Divided equally between the two initiatives, staff expect to be able to offer rental assistance to between five and 12 households annually, and security deposit help to 40 to 50 households annually. 

Michael said he hopes the program will be able to expand in the future, and secure additional funding through donations or partnerships with the state or federal government. Applications are set to open in late March.

“Of course we have to crawl before we run,” he said. “We are pretty excited to offer something that could help address affordability in Morrisville. The Triangle in general has so many affordability obstacles, so it’s important that local and regional efforts are being made to address this issue.”

Applicants will be chosen through a lottery system. Those moving into Morrisville from another area will have up to six months to use the funding, according to Michael’s presentation. According to the National Low Income Housing Coalition, a little more than half of the renters earning between 51 and 80% of the area median income for Raleigh-Cary are “cost-burdened,” meaning they spend more than 30% of their income on housing.

Applicants must make below a certain amount of money to be eligible. For rental assistance, that number is 60 percent of the area median income (AMI) for the Raleigh-Cary area—or about $56,000 for a single person, $64,000 for a two-person household, and $80,000 for a family of four. 

For the security deposit assistance , applicants must earn less than 80% AMI—in other words, about $73,000 for a single person, $83,000 for a two-person household, and $104,000 for a family of four. 

The amount of money people will receive is based on a calculation that involves income, household size, and the average cost of rental housing in Morrisville. 

Michael gave the example of a person making about $50,000 per year, who may only be able to afford an apartment with a monthly rent of $1,250 per month. But according to federal government estimates, a one-bedroom apartment in Morrisville typically costs around $2,020 per month. Morrisville’s pilot program would give the teacher $770 per month to make up the difference. 

At the meeting Thursday, Mayor TJ Cawley raised concerns about renters continuing to be burdened by the cost of utilities and insurance, which were not taken into account for the pilot program. Council member Harrison Kesling echoed those concerns, asking staff to track such costs, and suggesting education for applicants on how to save water and electricity. 

Michael agreed non-rent housing costs were a concern, saying staff could possibly address that issue in the future. He added that nonprofit NeighborUp, which will administer the pilot programs, could help applicants find additional assistance for things like water or electric bills.

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