Housing Authority seeks additional funding to finalize senior and multifamily housing projects

In a recent meeting of the Harrisonburg Redevelopment and Housing Authority (HRHA), officials discussed significant advancements in local housing projects, particularly focusing on financing strategies and ownership structures. The meeting, held on August 20, 2025, highlighted the urgency and complexity of addressing the community's housing needs.

The HRHA has made considerable progress with approximately $11 million in soft grant funds, which have accelerated the development of various housing projects. A key topic was the resolution for permanent financing through Land Unibank, with hopes to finalize this by September or early October. This financing will not only cover construction costs but also pay off existing owner financing and National Housing Trust funds associated with the properties.

A notable shift in ownership responsibilities was proposed, with HRHA potentially taking on greater ownership of senior and multifamily housing. This change could lead to tax relief, but it also means that HRHA would bear increased financial responsibilities. The discussions emphasized the need for HRHA to ensure the success of these projects, especially given the limited equity available and the reliance on guarantees from partners like Equity Plus.

The meeting also touched on the management structure of the properties, indicating that while HRHA would maintain a 51-49 ownership split, it would likely take a more active role in property management. This shift aims to streamline operations and enhance the effectiveness of the housing initiatives.

Concerns were raised about the current housing market, particularly regarding affordability. The HRHA is exploring ways to engage the city in collaborative efforts to address these challenges. Suggestions included seeking additional funding or grants to support infrastructure improvements and enhance the overall viability of housing projects.

As the HRHA moves forward, the focus remains on ensuring that the community's housing needs are met effectively. The upcoming phases of development will be crucial, and officials are optimistic about the potential for collaboration with the city to secure necessary resources and support. The meeting underscored the importance of proactive leadership in navigating the complexities of housing development in Harrisonburg.