While Charlottesville considers a land bank, CRHA to purchase three more properties

When the seven members of the Charlottesville Redevelopment and Housing Authority will meet at 6 p.m. in City Council Chambers, a major piece of business will be authorization for Executive Director John Sales to proceed with the purchase of three properties. (agenda)

But first, the CRHA Board of Commissioners will vote on a resolution to create an entity under Virginia law in connection with the redevelopment of the second phase of the South Sixth Street project. This is resolution #1479. 

As with other redevelopment projects, the CRHA is seeking to convert units from “public housing” units as recognized by the U.S. Department of Housing and Urban Development to units that are supported by project-based housing vouchers. A limited liability company is created for each project which can then be funded in part through low-income housing tax credits. (read the resolution)

Next, the CRHA Board will consider two resolutions for the agency to use funding from an agency called FAHE to purchase three properties. 

The first is 407 Harris Road for $475,000 with funding from FAHE. The two-unit property has a 2024 assessment of $392,800. This comes at a time when City Manager Sam Sanders is considering a recommendation from the Housing Advisory Committee to create a new entity to serve as a land bank for the purpose of buying land for housing. (read resolution #1480)

The second resolution is to purchase both 212 5th Street SW and 217 5th Street SW in Fifeville for $2.2 million with the funding coming from FAHE. The terms are not included in the resolution.

212 5th Street SW is a multifamily apartment building constructed in 1972 that has an assessed value of $1,111,300. 217 5th Street SW has three residential structures built in 1945 and 1950. These have a 2024 assessment of $778,200. (read resolution #1481)

The purchases are included in the August 2024 redevelopment report.

“The units are currently priced at a naturally affordable rate,” reads the report. “Several of the units are currently occupied by voucher holders. The acquisition of this portfolio will allow CRHA to preserve the naturally occurring affordable housing units while giving CRHA the ability to redevelop the property to provide additional housing units soon.”

During the Housing Advisory Committee’s discussions of the land bank, the minutes show that CRHA Executive Director John Sales said he felt his agency should be the land bank and these are the latest purchases. Representatives from the Piedmont Housing Alliance and Habitat for Humanity thought the land bank should be a new entity. They prevailed on a 5-3 vote on May 1 but it appears the CRHA is going to proceed with more land purchases anyway in the future.

“We continue to look for other opportunities to preserve affordable housing units in the City of Charlottesville,” the redevelopment report continues. 

According to the report, the CRHA plans to move its headquarters to the Downtown Mall property the agency purchased onFebruary 29 for $2.65 million. Two other non-profits will also relocate in the space which will be known as 310 HQ. The CRHA approved the purchase in late January.

“Based upon current construction timelines, CRHA is estimated to relocate its Central Office to HQ in October 2025,” the report continues. 

There will also be a discussion of the CRHA’s eviction diversion program.

“This program will be the first step in the three-year process of transitioning CRHA to a Trauma Informed Housing Agency,” reads a slide in the presentation. 

Before you go: The time to write and research of this article is covered by paid subscribers to Charlottesville Community Engagement. In fact, this particular installment is from the September 23, 2024 Week Ahead edition of the newsletter.