Council to consider extensions for two affordable housing projects after developers cite financing and soil issues; some councilors raise transparency concerns

Two requests to extend previously approved conditional‑use permits for affordable housing developments were presented to City Council; staff said both items will return to council for formal action at the next regular meeting.

Alisa Winston, executive director of the Portsmouth Redevelopment and Housing Authority (PRHA), and Andre Blakely, president of TRG Community Development Company, asked council to extend approval of Use Permit No. 2215 so PRHA can proceed with Twin Pines, an 82‑unit senior housing development at 3993 Swift Pines Road. Blakely said the team has faced higher site costs, including unsuitable soils that require importation and additional site work, and that funding commitments are in place: the Virginia Department of Housing and Community Development (DHCD) had committed $3,400,000 and PRHA planned to submit a noncompetitive Virginia Housing application on May 1. Blakely provided a timeline that anticipates loan approval in August 2025, bond inclusion in September 2025, financial closing in October–November 2025, and an 18‑month construction schedule leading to lease‑up in May 2027. PRHA said units will be supported by project‑based vouchers so tenants pay no more than 30% of income where subsidy is needed.

Community Housing Partners representative Milo Pfeffer asked for a similar extension for Ansell, a 39‑unit affordable housing project serving households at 30–80% of area median income. Pfeffer said CHP must reapply for low‑income housing tax credits after facing financing delays and expects to start construction in April 2026 if an extension is granted.

Council reaction to Twin Pines included procedural and transparency questions. Councilman Tillich and others said the original application presented at public hearing in 2022 had been described as market‑rate in public comments and materials; they said the subsequent transfer of the project to PRHA and the change to an affordable model left some neighbors and civic groups feeling they had not been fully informed. PRHA and TRG said the approved building design remained unchanged and that the change in ownership and the addition of subsidy were driven by the previous developer’s inability to move the project forward because of site and financial challenges. Dr. Rhonda Russell (community development staff) noted the zoning ordinance allows council to grant a time extension up to one year beyond a permit’s original expiration and added that during COVID the Virginia General Assembly extended certain approvals through July 1, 2025. She also said the ordinance requires proof of construction start (site plan approval and phases of construction) within the permit’s authorized timeframe.

Councilors asked staff whether a supplemental public hearing could be scheduled before council votes on any extension; staff said the extension request is on the next council meeting agenda and that the normal process for a time extension does not require a new public hearing because the permit itself has already been approved, but council has discretion over how to proceed. Several members stressed the request should be on the record and asked staff to provide timelines and documentation supporting state and Virginia Housing commitments before council action.

No formal council vote was taken at the work session; staff said the extension requests will appear on the next regular meeting agenda for council action.