HRHA outlines Bluestone Town Center build plan, voucher use and downtown renovation projects

Michael, HRHA staff, told the Harrisonburg- HRHA liaison committee on July 25 that the agency has secured most infrastructure financing for the Bluestone Town Center development and expects to start construction after final closings.

The project team has “received about $11,000,000 in state housing trust funds, HOME funds, and also a $1,000,000 allocation grant award from the Federal Home Loan Bank of Atlanta,” Michael said. He said the initial residential phase will include roughly 100 townhomes (targeted to first-time buyers at 60%–120% of area median income as proposed), about 35 single-family homes, 63 senior housing units and 83 multifamily units. HRHA staff said construction could begin this fall once infrastructure and other financing close.

Why it matters: The project is one of the largest HRHA-led development efforts discussed at the meeting and combines homeownership and rental units intended to serve first-time buyers, seniors and lower-income renters. Committee members pressed staff for specifics on eligibility, voucher placement and timing given long public waiting lists and uncertainty in federal housing funding.

HRHA staff said they will ask the planning commission in September and expect a city council review in October for required parcel modifications and approvals. The agency also described an agreement with a national homebuilder to construct the for-sale townhomes; the developer offers in-house financing, which staff said can make purchase prices and monthly payments more attainable for buyers.

On affordability thresholds, HRHA described a proposed change to the townhome eligibility that would allow units to be sold to households earning as little as 60% of Area Median Income (AMI), down from the previously stated 80% floor. Michael said that lowering the eligibility to 60% AMI would broaden access to workers and families such as teachers who fall below higher AMI floors.

Housing Choice Vouchers and tenant selection: HRHA staff stated that 70 Housing Choice Vouchers are allocated to Bluestone Town Center: 35 designated for the senior housing portion and 35 for multifamily rental units. Staff explained that voucher holders apply to properties they are willing to live in; if they pick Bluestone Town Center they will go on that propertyspecific wait list and, when they reach the top, be offered a unit there. Staff said vouchers remain assigned to the property but tenants may be eligible to request portability after two years.

Program capacity and waiting list: HRHA staff said the agency closed its general voucher waiting list last year because of funding shortfalls and now has about 4,000 people on various wait lists. Turnover, staff said, averages about 10 to 14 households per month (roughly 120—140 annually). HRHA described a preference system used by the agency to prioritize applicants (elderly, disabled, veterans, chronically homeless and local residency/work preferences).

Inspection standards, landlord outreach and incentives: Staff told the committee that recent national inspection-code changes (including GFCI outlet requirements and updated smoke-detector standards) prompted HRHA to offer landlord incentives and training to support unit compliance. Staff said incentives helped preserve landlord participation during the new inspection rules rollout.

Commerce Village 2, Thomas Village 2 and supportive housing: Staff reported on two smaller developments tied to supportive housing. Thomas Village 2 (described as a 16-unit permanent supportive housing project near East Washington Street) is largely under roof and expected to complete interior finishes by late November to early December. HRHA said 8 units will be set aside for veterans and will be filled through VA medical center and local-clinic referrals and that the agency plans to open the project wait list in September using the Continuum of Care By-Name list to prioritize highest-need applicants.

Downtown adaptive reuse: HRHA described a plan to acquire and renovate the former Glensville Place storefront for adaptive reuse. Under an agreed purchase with the Stipell family, HRHA would convert the site to 16 studio/efficiency units targeted to individuals with disabilities, plus office space for HRHA. The agency also outlined nearly full-scale renovations of two existing properties (noted in discussion as roughly 60 and 62 units at two named buildings) and said Glensville Place would be used to help relocate residents during those renovations. HRHA said it expects to request city council approval in September and is planning financing through bonds and a Fannie Mae program; staff mentioned an approximate financing interest rate of 6.1 percent for that plan.

Funding, closed programs and grants: HRHA staff said a previously run down-payment assistance program has closed. City and HRHA funds previously used for that assistance were reallocated; staff noted a recent award of about $140,000 to a local Habitat for Humanity program for homeowner rehab and separate CDBG allocations referenced during discussion of prior programs.

What was not decided: Committee members and HRHA staff discussed eligibility thresholds, lender participation in local mortgage-reduction programs and the precise construction schedule, all of which remain dependent on finalized financing and administrative approvals. Staff emphasized the agency would communicate public application and leasing timelines after closings and council approvals.

Ending: HRHA staff said the agency expects to provide a construction closing update and more detailed community outreach information once financing and planning approvals are finalized.