The U.S. Treasury Department has awarded $2 million to the Piedmont Housing Alliance through its Community Development Financial Institutions fund. Senators Mark Warner and Tim Kaine made the announcement in late June. The funding comes specifically from the Treasury Department’s Capital Magnet Fund.
In a release, Piedmont Housing Alliance said the funding would provide gap funding for the second phase of Friendship Court as well as the 206 apartments the agency is building at Southwood to satisfy the terms of funding Habitat for Humanity of Greater Charlottesville received from the Albemarle County and the Albemarle Economic Development Authority.
“High development and construction costs, high land and acquisition costs, and limited subsidy resources translate to significant funding gaps for affordable housing developments,” reads the release. “Without adequate subsidies, it is virtually impossible to build affordable housing.”
In the fiscal year that begins today, the city of Charlottesville is providing an additional $2.5 million to Piedmont Housing Alliance for the second phase of Friendship Court. Another $10.25 million in city funding for Friendship Court in FY24 through FY27.
The adopted capital improvement program for Charlottesville also shows nearly $5 million in city subsidies for two other affordable housing projects, both located on Park Street and rezoned by City Council earlier this year.
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