The City of Charlottesville took over ownership of an office building on Holiday Drive on January 20 after buying the property for $6.2 million. The idea is to convert the space to serve as a shelter for people without homes that is less restrictive than other places.
Last April, City Council adopted a budget which included $500,000 to cover the operations of what is referred to as a low-barrier shelter. At the time the city was evaluating the possibility of a different location on Cherry Avenue, an idea that has not been entirely discarded.
But that means there is cash in the capital improvement program budget that is there to be spent. On February 2, City Manager Sam Sanders asked Council to reallocate the funding to three other areas.
“They are emergency situations and they are really aimed at continuing to care for the unhoused in our community,” Sanders said.
The first request is from PACEM for $65,000 to close a funding gap in their current year’s budget. Sanders said fundraising has not been as strong and this will allow their system of cold-weather shelters to continue operating into the spring.
The second request is from the Blue Ridge Area Coalition for the Homeless for $234,000 to replace federal funds that currently pay for 32 households who are in permanent supportive housing.
Last fall, the Trump administration ordered changes to the “Continuum of Care” grant program run by the U.S. Department of Housing and Urban Development which sought to place many restrictions and conditions on funding. Attorneys General from several states sued and U.S. District Court Judge Mary McElroy granted a preliminary injunction.
“The program notice was also issued well after HUD’s congressionally mandated deadline for making program changes, virtually guaranteeing gaps in funding,” reads a report on the website of Nick Brown, Attorney General for Washington state.
On February 2, Sanders said the city is being asked to set aside money.
“The need for this funding is a result of an interruption from federal programming,” Sanders said. It appears to be temporary at this time, but we’re not guaranteed that the current federal administration is going to not continue to push to eliminate defund in a significant way this program.
On February 3, the United States House of Representatives passed an appropriations bill for HUD on a 217 to 214 vote.
“The bill puts in place a renewal structure that prevents gaps in funding for CoC programs while the FY25 Notice of Funding Opportunity (NOFO)—which introduced significant policy changes that could have diverted critical resources away from supportive housing—remains under litigation,” reads a report posted February 4 by the advocacy group CSH.
The third request before Council was $170,000 from the Salvation Army for new living space for families at their facility on Ridge Street.
“So these are new shelter beds, which is important for everyone to know and appreciate,” Sanders said. “When the Salvation Army relocates to the Cherry Avenue location as a part of their renovation plan at Ridge street, these families would go with them.
As for 2000 Holiday Drive, Sanders said he expects to see a report from a working group this month on what needs to happen to make the space functional as a living space and a place where people can get support services.
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