Hillsborough Approves Taller, Denser Buildings for Affordable Housing

Affordable Housing Development in Hillsborough

Residents of Hillsborough may soon have a new option for affordable living in one of the town’s most densely populated areas. This development, which will be the town’s tallest community, is located just a short walk from recreational facilities and senior services. The Board of Commissioners recently approved a development agreement with WP East Acquisitions LLC for 333 apartments on 11 acres at 1001 Corporate Drive.

The site was previously home to the Duke Hospice At the Meadowlands facility. It is part of the Meadowlands complex, situated next to the Orange County Schools Welcome Center and within walking distance of the Sportsplex and the Passmore Senior Center off U.S. 70-A. The Meadowlands also houses several businesses, a church, and the Orange County Emergency Services center.

The apartment complex could take up to seven years to build and will include 34 apartments offered at a lower monthly rent for 99 years. Half of these affordable units will cater to households earning 60% or less of the area median income (AMI), which is up to $62,460 for a family of three. The other half will serve households earning up to 80% of AMI, or up to $83,280 for a family of three.

Density and Community Needs

This development marks a first for Hillsborough, as the buildings could reach up to 65 feet tall—about 20 feet taller than the current limit. To reduce the visual impact, the upper stories will be set back from the street or property line. A revised town density bonus will allow the developer to build 30 apartments per acre instead of the previous 20.

In addition, the developer has agreed to contribute $1.8 million toward a long-planned sewer system upgrade and $300,000 to construct a paved, accessible walkway between Eno Haven Apartments and the Sportsplex. If the cost exceeds $300,000, the developer will provide roughly $400,000 and land for the path.

Next steps include a traffic study and a more detailed site plan that will show where buildings, parking, and driveways will be located.

Changes to Hillsborough's Density Bonus

Hillsborough already has a density bonus policy that allows 30 housing units per acre, but it only applies to projects where 80% of the housing is affordable to lower-income tenants. However, this bonus has never been used, according to Senior Planner Molly Boyle.

“Completely affordable housing projects are generally funded through local and federal subsidies,” Boyle explained before the Sept. 8 vote. “The competition for those is high, and we often lose out to Chapel Hill, which has a very robust affordable housing program.”

The revised density bonus will now apply to all multi-family housing developments that meet four specific requirements:

• Price at least 10% of new housing at an affordable rate for households earning up to 80% of the area median income
• Build the project within 500 feet of a major road
• Not locate the project next to an existing single-family development
• Negotiate a development agreement with the town

There are four properties within the town’s planning jurisdiction—Hampton Pointe, Eno Haven, Heritage Apartments, and Patriots Pointe—where developers could benefit from the updated policy. All four are developed but could be redeveloped to be more dense.