This photo essay highlights the resident experience before, during, and after a conversion of an apartment building under Rental Assistance Demonstration (RAD), a project of the Department of Housing and Urban Development (HUD)'s Office of Recapitalization. We sent a team to explore the conversion experience of residents at Craven Terrace in the City of New Bern, North Carolina, and the project's impact on the immediate and surrounding neighborhood.
New Bern and Craven Terrace
The City of New Bern, North Carolina, is located at the confluence of the Trent and Neuse Rivers, near the Atlantic coast. New Bern is North Carolina's original state capital and its second oldest town, dating back to the 1700s. It boasts a quaint historic district complete with a governor's palace, old clock tower, well-kept parks, and winding pedestrian paths.
Craven Terrace is a historic apartment complex built by the New Bern Housing Authority (NBHA) in two phases in 1942 and 1952. The property was registered on the National Register of Historic Places in 2014. The following year, faced with deferred maintenance challenges that included failing sewer lines, collapsing roofs, and deteriorating window framing, NBHA partnered with Evergreen Partners and TCG Development to redevelop and renovate the property. The RAD conversion was completed in December 2015. The renovation project began in April 2016 and was completed in March 2018.
Resident Input
The transformation planning process afforded the redevelopment team an opportunity to hold focus groups with residents to identify ways to improve their community and make Craven Terrace a nicer, safer place to live.
When RAD first came up for discussion in the community, it was "a hard sell." Through focus groups, newsletters, open resident meetings, and Q&A sessions, residents became open to the improvements as they were able to provide input on the renovations.
"It’s always good when someone makes you aware of what’s going to happen, [rather] than — BOOM — it just happens," observed Barbara S., a resident before and after the conversion. "They take time out — the questions you ask; they don’t let any questions sit."
Effecting Transformation
Improvements that modernized the apartments in Craven Terrace included re-configuring the interiors; up-sizing kitchen appliances; improving ceilings, floors, windows, and interior and exterior doors; adding HVAC units; and incorporating green building standards that decreased energy consumption and associated costs. Management of the complex was transferred to Preservation Management, a company that specializes in operating income-restricted and subsidized housing in many states.
"WHEN PRESERVATION MANAGEMENT CAME, I FELT THEY WANTED THE SAME THING I WANTED HERE IN CRAVEN TERRACE." ~ RESIDENT CATHY W.
Resident Dawn W. was pleased about the renovations in her kitchen. “Oh, you know I love that bigger stove. I can cook that turkey, I can cook some stuffing and everything in it at the same time. And that big refrigerator—I love it," she shared. But the changes to her apartment aren't the only thing that excited her. She also actively attends events held in the new community room and signed up for as many classes as possible with the hopes of improving herself.
Tenants experienced no displacement by moving to vacant units during the renovations with the first right-to-return when the renovations were completed.
Other major transformations include improvements to safety through security cameras, a well-lit outdoor space, and an increased police presence on site. Residents feel their community is a much safer place to live.
To strengthen the sense of community in Craven Terrace and to accommodate its residents who are elderly or living with disabilities, benches were placed in clusters around the neighborhood and in the community garden. In the garden, the benches are carved with names honoring members of the community. In one special tradition, each girl who becomes a member of the community girls' club has her name ceremoniously carved into one of the benches.
Resident Gwen D., who walks with a cane, especially loves the benches, noting that they helped the community become more integrated. “That was a really nice touch," she said with a smile. “We gave our suggestions and I think they went beyond. They really did.”
“WE HAVE PEOPLE OUT HERE WHO CARE ABOUT THE COMMUNITY AND THEY WANTED TO SEE IT GROW, SEE IT BECOME BETTER AS TIME GOES ON. WE HAVE SEEN A LOT OF CHANGES.” ~ GWEN D.
Resident Support
One of the Craven Terrance buildings was converted into a community services block, providing residents with services designed specifically for the Craven Terrace community such as office and meeting space for resident coordinators and the resident council. The services include an art and education space, a food bank operation center, and a trauma care center with community programs for victims of domestic and sexual violence. Local police also have a private room to meet confidentially with residents who may have public safety concerns or require incident debriefing. Physically locating these units within the heart of Craven Terrace demonstrates the priority placed on the well-being and growth of residents.
A unit in the community services block is a food pantry, where residents can "go shopping" for items they need. It includes both shelves of dry and canned goods as well as two deep freezers for perishable items.
In the coming months, the non-profit Promise Place will implement therapy sessions and trauma-informed yoga classes and will provide up to four months of transitional housing
Feeling at Home
"I BELIEVE THAT PUBLIC HOUSING SHOULD BE A STEPPING STONE. IT SHOULD NOT BE A PERMANENT RESIDENCE." ~ VICTOR TAYLOR
Victor Taylor is a retired Army Veteran and from 2009–2017, he was a New Bern City Alderman. Born in Craven Terrace, with the help of a midwife, he was inspired to run for office and represent his community.
"Since they started the renovation of this area, the crime has gone down. Apartments now are marvelous. And this building here—we’ve never seen anything like this. This is something that I always wanted to champion. Things they can actually walk to—the food bank. All these different apartments are geared towards different resources. If they’re able to, people want to succeed. But they have limitations, they have stumbling blocks. Transportation was [one of the] stumbling blocks... When they brought [the community resource center] here, it was right in your front door or your back door and you could actually walk to it. So when they started doing this, I was like, this is marvelous."
Taylor states that "If we value your community, eventually the residents will start valuing their own community and they are going to keep their community safe and clean."
Moving Forward
The conversion to RAD and the subsequent transformation of Craven Terrace has changed everything for the community. Not only are the buildings restored to their original beauty with strong, lasting materials, but safety has increased and much needed services were brought into the heart of the community. Residents feel heard and hopeful. Classes and community events—including historical reenactments from the Civil War—are shining a light on the past and opening a door into the future.
Now residents have a literacy program and access to several computers. The literacy program is only one of many classes and workshops offered to residents. All of the programs have the same intent: to help residents grow and build a better, stronger, vibrant community in New Bern.
Financing the Project
Federal and state historic tax credits were part of the finance packaging that was secured to help Craven Terrace restore buildings to much of its original 1940s-era design. Additionally, the layers of financing for this project included a Federal Home Loan Bank Grant, an acquisition loan from the New Bern Housing Authority, a capital fund loan from the non-profit General Partners, 4% Low-Income Housing Tax Credits, and tax-exempt bonds.
ABOUT RAD: The Rental Assistance Demonstration is administered by the Office of Recapitalization in the Office of Multifamily Housing Programs at HUD. Authorized in 2011, RAD allows public housing agencies and owners of other HUD-assisted properties to convert units from their original sources of funding to long-term project-based Section 8 contracts. These new contracts provide a more reliable source of operating subsidy that enables property owners to leverage private and public capital, such as debt and equity, to finance new construction and/or rehabilitation of rental housing. For residents, RAD offers enhanced protections and rights as they benefit from consultation prior to conversion, have the right to return after any construction, and maintain ongoing rights guaranteeing the affordability of the housing.