PRHA asks council to formalize $1.2 million commitment for Lexington Senior; staff to add item to August agenda

Portsmouth Redevelopment and Housing Authority asked the City Council July 22 to place a formal vote on the August agenda to honor a $1.2 million city contribution toward Lexington Senior, a senior housing project PRHA said will be complete this October. Alisa Winston, executive director of the Portsmouth Redevelopment and Housing Authority, told the council the Lexington Senior project is the second phase of redevelopment of Lincoln Park, which she said originally contained 178 public-housing units built in the 1960s. “We decided to do it in 2 phases. The first phase was Lexington Place, which is 72 units of townhomes. That was completed in 2021. And now we have the second phase, going underway now,” Winston said. Winston said PRHA requested $1,200,000 in 2023 as part of the capital stack for Lexington Senior; she said the city’s contribution made PRHA eligible for a VHDA match, which effectively doubled the city’s support in the closing capital stack. Developer partner Andre Blakely of the Richmond Group said construction is about 75% complete and the project expects to begin leasing immediately after completion. “We are about 75% complete with the project. Expect to be wrapped up by October,” Blakely said. City Manager Steven Carter told the council he had not budgeted for the $1.2 million and called the request a surprise: “I actually had no plans for this. This was, a surprise for me. I assume, you know, you guys knew about it, and, of course, PRHA knew about it. But I did not. So this has no spot in our budget for service, so this would have to come from—” Carter said, noting he would provide details if needed. Winston told council that PRHA has already bridged construction financing and would need the city funds around the time of project close to repay the bridge loan. She also said PRHA is preparing to lease to seniors and reported that 105 senior households had expressed interest on a wait list. Council members discussed whether the prior council commitment had been formalized. Vice Mayor Moody and others noted the earlier action was only a consensus rather than a formal vote. Councilman Hugo asked for a consensus to add the formal approval to the August agenda; council members indicated support. Staff said the item will appear on the August meeting agenda for a formal vote so the council can decide funding source and timing. Background: Winston said Lexington Place (phase one) opened in 2021 with 72 townhome units; PRHA described Lexington Senior as a follow-up 105-unit, age-restricted (62+) senior housing project. Winston also said PRHA plans a grand opening by year-end and that the next PRHA project will be an 82-unit senior development. No formal appropriation was made July 22; the council gave staff direction to place the funding request on the August agenda for a formal vote and to provide budget-source information at that time.