The last several years have seen a lot of changes at the Charlottesville Redevelopment and Housing Authority, an entity created in 1954 to oversee urban renewal projects and the construction of public housing units.
A master plan was adopted in 2010 to guide the redevelopment and renovation of those units, but nothing moved forward until later in the decade when the CRHA entered into an agreement with Riverbend Development in January 2019. A plan was implemented to renovate Crescent Halls and build the first new CRHA units in a generation at an athletic field on South First Street.
Both of those have now occurred and are largely complete and have served as a template for how to update the CRHA for the 21st century.
On Monday, the CRHA Board of Commissioners voted on a resolution to advance the next redevelopment project which is the second phase of South Sixth Street. (read the resolution)
“Phase one has been funded and has an anticipated construction start date towards the end of this year and so the residents are ready for phase two,” said John Sales, executive director of CRHA since the summer of 2020.
Like all public housing authorities across the country that receive funding from the U.S. Department of Housing and Urban Development, CRHA is capped at a certain number of units that qualify as public housing. To proceed with redevelopment, the CRHA has to ask HUD for permission to dispose of the existing units and convert them from traditional public housing to units funded in part by federal vouchers that are restricted to specific spaces.
These units are also funded through other financing mechanisms such as low-income housing tax credits.
Sales said CRHA has not yet filed what is known as a demolition and disposition form to HUD yet, but one for the first phase of South Sixth Street has been completed which sought permission to demolish six existing public housing units.
“The second part of that demo/dispo will remove the remaining 19 units and the community center,” Sales said. “We don’t know exactly the form of funding for the assistance tied to the unit. We do know they will be fully subsidized, but either through the voucher or public housing assistance. But we don’t know what that is yet because we’re not far enough along the process.”
Creating a new LLC will allow the process to proceed. The registered agent for the other entities created so far is Dephine Carnes, a Norfolk-based attorney who provides services to public housing authorities across Virginia.
There was no discussion of the item before a unanimous vote to proceed.
The CRHA Commissioners also approved two resolutions authorizing Sales to purchase three pieces of property. The first is at 407 Harris Road in the Fry’s Spring neighborhood for $475,000. (read resolution #1480)
“There are two units,” Sales explained. “One unit is a two bedroom, one and a half bath. The second unit is… three bedrooms, one and a half bath. The two bedroom unit is currently vacant. The three bedroom unit is currently rented, and it’s by a family that’s in our program already.”
A real estate agent became aware that the property owner wanted to sell and approached the CRHA. Sales said work was already underway to acquire other property, so the financing with FAHE was increased to cover this one as well. Sales said this property appraised at $490,000.
“It appraised for slightly more than what we’re acquiring it for, but the reason we’re acquiring it is to keep it affordable,” Sales said. “So that’s the goal. And it’s highlighted in our strategic plan for us to acquire more properties for preservation in the city.
Sales said the vacant unit is move-in ready.
Next up was Resolution #1481 for properties on Fifth Street SW in Fifeville at a purchase price of $2.2 million. (read resolution #1481)
“This resolution is also a resolution to buy two parcels that contain a total of 13 units,” Sales said. “There are nine units on one property, brick townhouses. And then across the street, there are four. Four units amongst three different structures.”
Sales said current rents for the units are currently between $600 and $1,000 below the market rate.
“We began talking with this owner about a year ago when she mentioned that she was interested in selling her property,” Sales said. “The property has not hit the open market.”
Sales said some of the units currently have housing vouchers associated with them and the rents on these will be increased because there is more funding that can be claimed for the vouchers. Rents without vouchers will not immediately see rent increases. It has not yet been determined if CRHA will ask the city for financial assistance to purchase the properties as was done with the Dogwood portfolio.
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