Construction of affordable townhomes with a community planning group reviewing final plans supported by a revolving gap fund.
Cabarrus County, North Carolina, August 28, 2025
Cabarrus County seeded a $2 million Revolving Construction Loan Gap Fund to help nonprofits and social ventures finish affordable and workforce housing projects. Managed by a local housing nonprofit, the fund offers short-term, low-interest loans (1%–3%) to cover final construction gaps so projects can proceed. A Permanent Housing Committee of nonprofit leaders, developers, community members and lenders will review requests with technical support from a local bank. The fund is designed to revolve as loans are repaid and to grow with grants and donations, addressing a significant local housing shortfall amid rapid population and rent growth.
Cabarrus County has seeded a new financing tool to help community groups finish affordable and workforce housing projects. The county provided $2 million to create the Revolving Construction Loan Gap Fund, a short-term, low-interest pool of money run by a local housing nonprofit. The fund is designed to supply the final dollars a project needs to move from planning into construction.
The fund will make short-term loans at a low interest rate between 1% and 3%. Loans are not meant to cover total project costs but to fill last-minute financing gaps so projects can proceed on site. Repayments are expected to go back into the fund so it can be used again, making it a revolving loan fund.
Unlike most construction gap lending, approval decisions will not rest only with a bank. The Permanent Housing Committee of Cabarrus — made up of nonprofits, housing developers, lenders and community members — will decide which requests get money. A local bank will offer technical support to that committee. This setup aims to give smaller nonprofits a real shot at funding when traditional lenders may be hesitant.
Nonprofits and social ventures can apply for loans through the housing nonprofit operating the fund. The initial hope is that repayments will replenish the pool, and that future growth will come from government grants, private donations and additional community dollars.
Rising construction costs and fast population growth in the county have created strong demand for housing. Typical construction gap loan rates run between 5% and 8%, so the fund’s 1% to 3% rates are intended to be a significantly cheaper short-term option to get projects started. The stated aim is practical: provide the last few dollars so construction begins without delay.
Almost 245,000 people live in Cabarrus County. Nearly half of them live in the county seat, where population has risen quickly in recent years. One city in the county grew by almost 7% between 2020 and last year and has expanded about 33% over the past decade, making it one of the state’s largest cities.
An analysis ordered by a statewide foundation projects the county will be among the top 10 in the state for various growth measures between 2024 and 2029. That same analysis estimates a housing supply gap of more than 15,300 homes for sale and rent combined. For households earning up to 80% of area median income, the gap includes roughly 1,267 homes for sale and 2,691 rentals. For a family of four, 80% of area median income is under $89,750.
The county’s median household income is around $86,084. About 27% of local homes are considered cost-burdened, meaning households pay more than 30% of income on housing. Average rents in the main city are over $1,500, and the county has among the highest year-over-year rental increases in the state.
The nonprofit operating the fund recently opened a 26-unit townhome development offering for-sale and lease-to-own options. The group also purchased a historic church and is converting it to a mixed-income project with community and artist spaces, and has begun construction on a tiny home village in downtown. Another local nonprofit is building a large transitional housing complex on roughly 10 acres of old mill property. That campus will be built in three phases, include daycare and program space, retail and health amenities, and aim to offer roughly 96 apartments serving about 300 people. The full campus is estimated to cost about $13.5 million and could take several years to complete.
The fund will offer short-term, low-cost gap loans that organizations can use to close financing needed to start construction. Loans are not a substitute for large construction loans or permanent financing; instead, they are intended to remove a common stumbling block that stalls projects. Applicants will apply through the nonprofit managing the fund and be reviewed by the Permanent Housing Committee with technical help from the local bank.
With the initial county contribution in place and an approval process set up, the fund aims to begin taking applications and making loans on qualifying projects. Organizers hope that by recycling repayments and attracting outside grants and donations, the fund will expand its reach and help more projects move into construction as the county continues to grow.
It is a short-term revolving loan pool seeded with $2 million from the county to help nonprofits and social ventures cover the final financing needed to start construction of affordable and workforce housing.
Nonprofits and social ventures working on affordable or workforce housing projects can apply through the nonprofit that manages the fund.
Loans are short-term and carry low interest, generally between 1% and 3%. They are not intended to cover full project costs.
A Permanent Housing Committee made up of nonprofits, developers, lenders and community members reviews and decides on loan approvals, with technical support from a local bank.
Repayments are meant to replenish the fund. Additional growth is expected from government grants, private dollars and donations.
Interested organizations should contact the nonprofit managing the fund for application details and eligibility requirements.
| Feature | Details |
|---|---|
| Seed funding | $2,000,000 from Cabarrus County |
| Fund type | Revolving construction loan gap fund (repayments replenish the pool) |
| Loan terms | Short-term, low-interest (1%–3%) |
| Typical market comparison | Standard gap loan rates often 5%–8% |
| Who applies | Nonprofits and social ventures via the managing nonprofit |
| Approval body | Permanent Housing Committee of Cabarrus with bank technical support |
| Primary purpose | Provide final dollars to start construction on affordable/workforce housing projects |
| County housing context | Population ~245,000; housing gap ~15,300 homes; county growth among top 10 statewide projections |
| Local projects mentioned | 26-unit townhomes, historic church conversion, tiny home village, 96-unit transitional campus (3 phases) |
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