Virginia Gov. Ralph Northam announced Tuesday more than $1.1 million in loans for affordable housing projects in Charlottesville as part of several loan approvals throughout the state.
The state will provide $800,000 toward the Charlottesville Redevelopment and Housing Authority’s renovation of Crescent Halls and $336,020 to the Greater Charlottesville Habitat for Humanity for phase three at Lochlyn Hill.
The money was approved among $11 million in Affordable and Special Needs Housing loans for 17 projects. This year, the General Assembly provided an additional $5.5 million toward the program, according to a news release.
“We must continue to increase the supply of affordable housing throughout Virginia,” Secretary of Commerce and Trade Brian Ball said in the release.
The funds will be used to create or preserve 1,283 affordable housing units statewide.
CRHA is planning a $17 million renovation of the 105 units at Crescent Halls. Executive Director Grant Duffield called the funding “critical.”
“As much as anything else, it is a tremendous affirmation from the state, from the governor, acknowledging the significance of what we’re trying to do,” Duffield said.
The three-phase project would modernize the building and improve access for its residents, primarily seniors and disabled persons.
The renovated building will have 98 one-bedroom and seven two-bedroom apartments.
Duffield hopes to start construction by the end of the year and it is estimated to take 12 to 18 months to complete.
The housing authority has estimated it will need $3.5 million to $7.6 million in local government and philanthropic support for the project.
Habitat will use its funds to construct five homes in the third phase of Lochlyn Hill, according to President Dan Rosensweig.
The development, which straddles the city and Albemarle County line, is being constructed by Milestone Partners. As part of the rezoning for the city property, the company promised to make 15 percent of the housing affordable.
Habitat constructed eight homes in the second phase of the development.
Rosensweig didn’t have a total estimate for construction, but said the funding would cover “a good chunk of it.”
“Families work really hard and they pay as much as they possibly can, but it’s never nearly as much as it costs to build,” he said. “So this is one of the key subsidies we need to help families realize their dreams.”
The two projects were among 29 applications requesting more than $21 million.
Duffield said CRHA also applied for $500,000 toward construction and renovation of units on South First Street. The project was not selected for funding.