Cabarrus County unveils $2M revolving gap loan fund to support nonprofit affordable and workforce housing projects.
Cabarrus County, North Carolina, August 18, 2025
Cabarrus County has seeded a $2 million Revolving Construction Loan Gap Fund to provide short-term, low-interest (1%–3%) loans to nonprofits, government entities and mission-driven social ventures building permanently affordable and workforce housing. The fund is designed to close timing and capital gaps during construction, recycle repayments in perpetuity, and accelerate projects that expand homeownership and rental options for moderate- and lower-income households. Loan decisions will be made locally by the Permanent Housing Committee of Cabarrus with technical support from a banking partner. Program details and applications will be posted by the local housing partnership.
Cabarrus County has created a new Revolving Construction Loan Gap Fund with $2 million in seed money to help nonprofits and social ventures build permanently affordable and workforce housing. The fund will offer short-term construction loans at very low interest rates of 1% to 3%, well below typical market lending for attainable housing.
The fund is designed to fill the capital shortfalls that often stop affordable housing projects from moving forward. It provides gap financing — short-term loans to cover costs that other lenders or subsidies do not. The structure is a revolving fund, intended to be reused over and over as loans are repaid, creating a lasting source of construction capital for mission-driven housing efforts.
Local stakeholders will play a central role in decision-making. A Permanent Housing Committee of Cabarrus will oversee loan approvals, with assistance from a banking partner, F&M Bank. Local nonprofits, government representatives and residents will have input through the committee, and the fund is built to operate outside traditional loan systems to allow more flexible, mission-focused lending.
The idea began as part of a strategic plan created by a local housing initiative aimed at expanding equitable and permanently affordable housing in Concord. The concept gained broader support from the county housing collaborative and was championed by the county chapter of a statewide community organizing group to advance shared-equity and permanently affordable housing models. Advocacy efforts included a campaign called One New Fund, Many New Homes and public testimony to county leaders, which helped secure board approval and the county seed contribution.
Officials scheduled a public announcement for Tuesday, Aug. 19, at 10 a.m. at Concord City Hall, 35 Cabarrus Ave. W., Concord. Those seeking more information are directed to visit the lead housing initiative’s website, which includes a dedicated Revolving Gap Loan page with program details and application information.
Local leaders point to rising construction costs and a widening gap between housing expenses and wages as key pressures. Recent local housing projects underscore those pressures: a nearby development of 26 affordable townhomes was delayed by zoning and engineering hurdles, old underground utilities and the need for additional infrastructure, and required a mix of public funds and partnerships to move forward. That project offers homeownership and rentals targeted to households up to 80% of the area median income, with a portion available to households up to 110% AMI and prices starting in the mid six figures for qualifying buyers.
Loans from the fund are intended to be short term and low cost to help developers bridge timing and funding gaps during construction. By offering rates between 1% and 3%, the fund aims to reduce financing costs that otherwise increase unit prices or prevent projects from starting. Once repaid, those dollars will return to the fund for new projects, creating a self-sustaining pool of capital aimed at mission-aligned development.
County leaders and housing advocates say the fund is expected to encourage additional investments from nonprofits and private developers and to boost economic mobility by expanding housing options for workers and families. The Permanent Housing Committee will begin reviewing loan requests once the fund is operational. Community members and organizations interested in applying or learning more are encouraged to attend the public announcement or consult the program page online.
Other regional and municipal affordable housing efforts show a mix of strategies, including mixed ownership and rental projects, single-family affordable subdivisions, and larger multifamily developments with deep income targeting. Those projects illustrate common barriers: land and construction costs, zoning and permit hurdles, utility and infrastructure needs, and the long timelines often required to make affordable housing financially viable.
The fund is a county-seeded, revolving loan pool that provides short-term, low-interest construction loans to nonprofits and social ventures building permanently affordable and workforce housing.
Cabarrus County provided $2 million in seed funding to establish the fund.
Nonprofits, social ventures, and certain government-affiliated housing projects that meet the program criteria can apply. Loan decisions will be managed by the Permanent Housing Committee with banking support.
Loans will carry interest rates in the 1% to 3% range, intended to be far lower than typical market-rate construction financing.
The public announcement is scheduled for Aug. 19 at 10 a.m. at Concord City Hall, 35 Cabarrus Ave. W. Additional details and application information are available on the lead housing initiative’s website under the Revolving Gap Loan section.
| Feature | Detail |
|---|---|
| Seed Funding | $2,000,000 from Cabarrus County |
| Loan Type | Short-term gap construction loans |
| Interest Rate | 1% – 3% |
| Governance | Permanent Housing Committee of Cabarrus with F&M Bank support |
| Eligible Borrowers | Nonprofits, social ventures, local government-affiliated projects |
| Primary Goal | Support development of permanently affordable and workforce housing |
| Public Announcement | Aug. 19, 10 a.m., Concord City Hall, 35 Cabarrus Ave. W. |
| More Info | Visit the lead housing initiative’s website and the Revolving Gap Loan page |
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