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The money will help support the construction of more than 300 new units in the city.
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The pilot Housing First Plus Project aims to move unhoused residents off the streets, but requires buy-in from local landlords.
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The announcement comes a day before newly-confirmed Department of Homeland Security Secretary Markwayne Mullin is scheduled to visit the area.
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The change comes as the county continues to experience significant growth.
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Property owners in Guilford and Davidson Counties have recently received property tax revaluation notices for 2026. Property Tax Attorney John Cocklereece with Bell, Davis & Pitt Attorneys in Winston-Salem talks about the process of filing a successful tax revaluation appeal.
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The development will bring more than 100 new, mixed-income housing units to the Northeast Ward in the city.
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A study by the National Low Income Housing Coalition shows that all 50 states are experiencing this challenge.
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The shift comes as the city moves away from its Doorway Project to sharpen its focus on addressing the challenge.
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A virtual event led by Leadership Winston-Salem will explore the hurdles and opportunities shaping housing today.
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According to the report, more than half the homes in the Piedmont Triad are cost-burdened.
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The proposal would consolidate funds from the county and cities of High Point and Greensboro to address priorities like shelters.
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The project will bring new workforce housing for individuals like teachers, firefighters and police officers to Gibson Road.