The property at 501 Cherry Ave. will have 71 affordable rental units, as well as commercial space that includes a community grocery store. Photo: Eze Amos
In its efforts to increase and preserve Charlottesville’s affordable housing, City Council took a first look at several requests on January 20 before its scheduled approval votes on February 2.
One request asks for a note guaranteeing $3.77 million for a partnership between the Piedmont Housing Alliance and Habitat for Humanity of Greater Charlottesville to redevelop 1025 Park St. into 86 affordable units, classroom space, and eight market-rate homes.
“The funding will be used for property acquisition, construction, and project-based rental assistance for five apartments for five years,” said Brenda Kelley, Charlottesville’s redevelopment manager. “Construction is expected to start in the fall or winter of this year.”
Council agreed to a request from PHA to expedite approval of this request so all the funding is in place before the partnership closes on the property this January.
PHA is also developing 501 Cherry Ave. in a partnership with Woodard Properties and the Fifeville Neighborhood Association. Council has previously committed $3 million to the project.
“It aims to deliver 71 affordable rental units as well as commercial space,” said Madeline Metzler, Charlottesville’s acting housing manager. “That commercial space will be used by the Music Resource Center, a local nonprofit, as well as … a community grocery store.”
However, PHA needs to close a $1.7 million gap by April. Council agreed to spend $700,000 from a capital contingency fund and provide an additional $1 million in tax abatement.
“This additional investment will allow the project to proceed on schedule with completion expected in 2027 and full occupancy by 2028,” Metzler said.
The $700,000 will build out space for the grocery store. Sunshine Mathon, executive director of PHA, said an agreement with Cville Food Co-Op to occupy the space was almost complete, but some of the details had to be worked out.
“We’re going to be strong partners with them and committed to working with them to try to get that to happen,” Mathon said, pointing out that this funding will allow the co-op to focus on getting a store running rather than paying for construction.
Mathon told Council the entire project would unravel if it didn’t grant this latest funding request. Council’s agenda for
February 2 includes a second reading for this proposal.
Elsewhere, Council appears to favor a $390,000 request for a pilot program to help some residents of Kindlewood pay their rent.
“Arrears have reached over $450,000, creating financial strain for PHA and increasing eviction risk for residents,” Metzler said.
The plan is to use $220,000 specifically for back rent and $170,000 to hire a counselor for two years to work with households on financial literacy.
Council also updated an agreement with SupportWorksVA that governs $936,722 in funding for the Vista 29 project currently under construction at the site of the former Red Roof Inn on Holiday Drive. Albemarle County has contributed $3.1 million for the project, which will consist of 80 studio apartments.
