City Secures $10M Financing for Glensville Renovation Project with Bond Counsel Consultation

Harrisonburg's Redevelopment and Housing Authority is moving forward with a significant $10 million financing plan aimed at enhancing local housing projects. During a recent meeting, officials discussed the complexities of securing funding, particularly in relation to Fannie Mae requirements, which may limit the ability to qualify for tax-exempt financing.

The proposed financing includes a taxable interest rate of 6.75%, a figure that officials acknowledged as less favorable compared to the lower 5.8% rate they had hoped for. However, the team remains optimistic about exploring options with bond counsel, which will be engaged once hired. This step is crucial as it could open the door to potentially accessing tax-exempt financing if approved.

The financing plan is not only a critical step in the renovation of local housing projects but also plays a vital role in a grant application for $1.5 million aimed at the Glensville area. The authority is seeking authorization to proceed with the tax-exempt option, contingent upon bond counsel's approval. If this route is not viable, the plan will revert to the taxable financing.

This financing initiative represents a key effort to improve housing conditions in Harrisonburg, reflecting the authority's commitment to addressing community needs through strategic funding and development. As the process unfolds, stakeholders will be closely monitoring the outcomes of these financial discussions and their implications for local housing projects.