PHA, Habitat get $2.5 million total in state loan support for affordable housing projects

Two Charlottesville organizations are getting a combined $2.5 million in state loan support to support affordable housing projects.

Gov. Ralph Northam announced Thursday loans of nearly $12 million throughout the state for affordable housing and homelessness projects.

The Piedmont Housing Alliance was awarded $2 million toward the first phase of the redevelopment of Friendship Court, while the Greater Charlottesville Habitat for Humanity received $520,000 for its Piedmont/Montpelier projects.

Dan Rosensweig, president and CEO of the local Habitat, said the loan is over a 15-year span. If the units constructed with the money remain affordable for that period, then the loan is forgiven.

Phase one at Friendship Court includes 106 units on about 4 acres of the property off Monticello Avenue.

Construction would take place on undeveloped land along Sixth Street Southeast and includes 35 multi-family homes and a 71-unit apartment complex. Of those units, 46 will be used by current residents who will be moved from the next area of development.

Most of the new units will be affordable housing for households making $25,000 to $50,000, PHA Executive Director Sunshine Mathon has said.

Some of the units will be at market rate but remain income-restricted to residents making about $70,000.

The first phase of the four-part redevelopment is estimated at $30 million.

It will be spread across three buildings. Two will have 35 stacked townhomes and include two-, three- and four-bedroom units.

Building one will have a secured bike parking space and house the property’s maintenance offices.

The third building will have the apartment units over a covered parking garage. It includes 9,000 square feet of amenity and office space. Amenities will include a library, multipurpose room, game room and fitness center.

PHA expects to start work early this year and construction should take 15 to 16 months.

Phase two of the project will be roughly 100 units, 77 of which will be affordable housing and 23 will be market rate. Fifty-four units will be occupied by existing families.

Phase three will be 100 units, with 75 affordable and 25 market rate.

Plans for phase four haven’t been fully developed, but it likely will need 75 affordable units to meet PHA’s goal of 150 across the redevelopment.

Rosensweig said Habitat plans to use the loan money to build seven homes and rehab another between Piedmont Avenue and Montpelier Street.

Construction is expected to start in the summer and take about 15 months.

“This funding will help a lot,” he said.

The money comes from the Affordable and Special Needs Housing loan program, which is administered by the Virginia Department of Housing and Community Development.

Source: www.dailyprogress.com