Housing authority outlines $29 million Sykes Mid‑Rise renovation, seeks up to $17 million in private activity bonds

Nathan Sims, executive director of the Norfolk Redevelopment and Housing Authority, told the City Council on Feb. 11 that the authority plans a phased renovation of Sykes Mid‑Rise and will seek private activity bonds to close financing.

Sims said Sykes Mid‑Rise is an 84‑unit building constructed in 1980 that serves elderly and disabled residents. He described a conversion from public housing (Section 9 under the National Housing Act) to a project‑based Section 8 platform through the Rental Assistance Demonstration (RAD) program, which will allow the authority to pursue low‑income housing tax credits and private financing. Sims gave a total project cost estimate of $29,000,000 and said the authority will request issuance of bonds up to $17,000,000 to support renovation; he emphasized the project “is no liability against the city and its balance sheet.”

Planned upgrades include new kitchens and bathrooms, Energy Star appliances, improved HVAC and electrical systems, improved social and laundry spaces, new roofs and energy‑efficient windows. Sims said units will be configured for universal design so that about 25% will be accessible. He described phased relocation for construction that he estimated would last about three to six months for affected residents; Sims said the authority is responsible for relocation costs and “no cost will be passed on to the tenant.”

Sims said residents will continue to pay 30% of adjusted income for rent under the Section 8 subsidy structure, though some households now paying flat public‑housing rents may see phased increases over several years depending on individual circumstances. He said residents will retain lease protections, remain eligible for HUD programs such as family self‑sufficiency, and may be eligible for vouchers under choice‑mobility rules subject to voucher availability.

Sims gave a timeline: the authority will seek state financing in April, anticipates the first relocation phase in early fall, closing on financing in late fall, and expects renovation work to finish in mid‑2027. He said the authority has conducted “double‑digit” meetings with residents and is working with relocation specialists and property managers. Council members pressed for more detail about the relocation plan; Sims said five vacancies are currently available on site and that most relocations are likely to be off‑site given capacity constraints.

No formal bond vote occurred at the work session; Sims said a bond request will be forthcoming to council for consideration.