Wilmington, North Carolina

Reconstruction of Hurricane Damaged Property with Vitus

HAO worked with Vitus and HUD to reconstruct a property severely damaged and uninhabitable after Hurricane Florence and rehouse displaced residents in a fully renovated project.

Project Overview

Transfer, Rent Increase, and Resettlement of Displaced Residents Revitalizes Market North

In 2018, Market North, a 204-unit multifamily project located in Wilmington, North Carolina, experienced extreme damage after Hurricane Florence. All residents were forced to vacate the property. The project has a project-based Section 8 Housing Assistance Payments (HAP) contract assisting 201 units and is regulated under HUD’s LIHPRHA program.

To facilitate the comprehensive renovation necessitated by the hurricane damage, Vitus needed a significant rent increase beyond the standard OCAF increase typical for LIHPRHA projects. HAO worked with Vitus and HUD to raise project rents to facilitate the financing necessary to fund the rehabilitation and manage the comprehensive tenant off-site housing and relocation process.

Applicable HUD Programs

  • Project-Based Section 8
  • HAP Renewal
  • Budget-Based Rent Increase

Meet the Project Team

Sheila O'Leary
Debra Tretola

Debra Tretola


Project Details

Vitus Works with HAO to Obtain HUD Approvals and Funding

HAO helped Vitus to obtain rent increase approvals and access the HUD programs necessary for the rehab funding and tenant relocation.

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20-Year HAP Renewal with Rent Increase

HAO obtained approvals to renew the HAP contract for a 20-year term and secure a LIHPRHA, budget-based rent increase to set rent at levels necessary to support the project’s new debt financing.

Amended LIHPRHA Use Agreement

The project’s LIHPRHA use agreement previously contained a limitation on distributions. HAO worked with HUD to obtain approval to amend and restate the LIHPRHA use agreement to remove the limitation on distributions.

Tenant Relocation Issues

Vitus acquired the vacant property when all tenants were already off-site and needed to coordinate an extensive tenant tracking and relocation process with regular HUD oversight.  Vitus ensured all tenants were apprised of the project’s status utilizing a HUD approved re-occupancy plan in compliance with HUD and Multifamily Emergency/Disaster guidance to support a smooth transition for Market North residents back to the project post-renovation.


Project Outcomes

Resettled Residents after Project Destroyed by Hurricane

The damage of Hurricane Florence deprived the Wilmington community of an important affordable housing asset and created extreme inconvenience for project residents.

Working with HAO and HUD, Vitus managed to secure the necessary HUD approvals for a significant rent increase, coupled with new bond financed debt and low-income housing tax credit equity. With this work, Vitus undertook a reconstruction of Market North and resettled displaced residents.

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