Public hearing in Richmond today for affordable housing funds

As the cost of housing continues to increase in Charlottesville and Albemarle, many different entities are working to either create or maintain th e numbers of places with price points that are affordable for those with lower incomes. 

These projects are all financed through multiple sources including bonds issued by the Virginia Housing Development Authority. The agency has rebranded itself as “Virginia Housing” and will also hold a public hearing on Thursday, April 8 in Richmond on the issuance of up to $847,205,000.

The public notice for the hearing notes that the funds will “retire and refund certain multi-family notes and bonds and/or to provide additional funds to purchase or finance multi-family rental housing developments for low and moderate income persons and families, including in some cases group facilities for persons with physical or mental disabilities.” 

Those who purchase bonds are paid back over time with interest. 

There are over two dozen projects across the Commonwealth of Virginia that are involved with these projects. One of them is the second phase of Kindlewood being developed by the Piedmont Housing Authority. Technically the $53,415,000 in bonds would be floated for FC Phase 2 LLC as each project often has its own corporate entity. The public notice states 110 units would be constructed in this phase. 

A representative from the Piedmont Housing Alliance said the 110 units are a typo and the actual amount is 104 units. That number is also what City Council saw on June 17 when they approved a forgivable loan related to the second phase. In the staff report, the unit breakdown is listed this way:

• 54 units will be subsidized through project-based federal Section 8 vouchers
• A minimum of 46 units that would be designated for rent to households making between 30 percent and 80 percent of the area median income (AMI) 
• A minimum of four units would be made available for sale under the land trust 

Earlier this summer, I asked for a breakdown of how much city funding has gone into Kindlewood so far. 

• $350,000 – Friendship Court Master Planning
• $75,000 – PHA Friendship Court Community Wealth Building Initiative
• $5,940,000 – Friendship Court/Kindlewood Phase 1 redevelopment (CIP)
• $5,750,000 – Friendship Court/Kindlewood Phase 2 redevelopment (CIP)

Funding from the city is considered non-bondable, which means those are direct payments of cash from Charlottesville to the Piedmont Housing Alliance. 

The total cost for Kindlewood’s second phase is $68 million.

“This includes nearly 30,000 square feet of commercial space (including the future Early Learning Center, a larger community center, offices, and the Financial Opportunity Center), new public roads, the first half of a future public park, and the Phase 2 residential units,” said Brooks Wellmon, Director of Mission Investment and Communications at the Piedmont Housing Alliance.

Wellmon said the four land trust projects are outside of the amount that will be funded by the Virginia Housing bonds.

There are two more phases to go. 

The hearing will be held at 11 a.m. at the offices of the Virginia Development Housing Authority at 601 South Belvidere Street in Richmond. (meeting info)

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