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Authority details Bluestone Town Center, Commerce Village and Lineweaver project progress
Summary
Board updated on financing, permitting and scheduling for major projects including Bluestone Town Center (senior housing), Commerce Village and the Lineweaver project; some infrastructure costs rose and tax-credit deadlines drive schedules.
The Harrisonburg Housing Authority updated the board on several development projects, reporting progress on financing, permitting and schedule constraints driven by historic tax-credit deadlines and increased infrastructure cost estimates.
Executive Director Michael said the authority expects to close a roughly $2 million loan with a community development financial institution (named in the transcript as a Richmond-based lender) and that United Enterprise funding is expected to close in October; that closing is required before work on infrastructure and vertical construction can begin. He told the board the authority had signed loan documents and that enterprise funding will provide predevelopment funds intended to pay interest on other interim financing.
On Bluestone Town Center: Michael said the authority will serve as the general partner for the senior housing component to access certain funding sources and tax-credit structures; due to the way tax-credit partnerships are structured, the authority's ownership stake as general partner will be limited. He warned the board that transportation and infrastructure costs associated with the site rose from about $1 million in 2022 to about $3 million, increasing the need to sell or leverage additional units and private investment to cover those costs. He also said the award of tax credits imposes a construction start deadline the authority must meet to keep the credits.
On Commerce Village: staff announced a grand opening for Commerce Village scheduled for Dec. 6, with a program targeted for mid-afternoon. Commerce Village 2 financing is expected to close next week (per staff remarks) and closing of enterprise funding in October will allow infrastructure and construction work to proceed.
On the Lineweaver/Line Weevil (transcript spelling varies): staff said they must identify a general contractor and expect to solicit bids by October and select a contractor by Dec. 1 to meet Fannie Mae financing timelines.
Planning and approvals: the board heard that a planning commission unanimously approved a parcel modification removing an 80% area median income requirement; staff said eligibility and target income levels for for-sale townhomes are being adjusted to allow buyers up to roughly 60% AMI in targeted units, which the board said could help local workers such as teachers qualify.
Why it matters: these projects are the authority's largest near-term capital efforts and are tied to multiple funding sources. Rising infrastructure costs and tax-credit timelines were presented as the primary schedule and underwriting risks.
Board members asked for continued updates on closings, permitting and design revisions; staff said they would return with details as financing documents are finalized.
