Harrisonburg Housing Authority authorizes Bluestone Town Center and Line Weaver financing; board approves erosion bond and loan resolutions

The Harrisonburg Housing Authority on Aug. 20 approved a set of financing resolutions that the agency said are critical to moving Bluestone Town Center and the Line Weaver renovation toward construction.

For Bluestone Town Center, staff described a layered financing structure: a construction line of credit to support infrastructure and site work, a separate permanent loan expected from Atlantic Union Bank for senior housing, and repayment of prior owner financing. The board voted in favor of a resolution authorizing the authority to enter into the loan transaction with Unite Bank for construction financing; commissioners approved the motion on a roll call of present members.

Staff cautioned that taking ownership of the senior and multifamily components will increase the housing authority’s guarantees: although an equity partner (referred to as Equity Plus) has agreed to capped participation of up to $4,000,000, the loan documents allow lenders to rely on the authority for full performance if necessary. Executive Director Michael said the authority needs to be prepared to “make the project work” and that the agency’s responsibility could be “100%” for loans even where an equity partner shares risk on paper.

The board also approved a resolution authorizing issuance of an erosion and sediment (E&S) bond tied to Phase 1 site work. Staff said the E&S bond has an estimated principal amount of $4,000,000 with an associated premium/fee of about $60,000, which the authority would pay to secure the bond. The E&S bond covers land disturbance and related erosion controls needed to start infrastructure work on the approved site plan (Phase 1 includes townhomes, single‑family units, senior housing and multifamily units).

Separately, the board approved a financing resolution under which the authority would pursue approximately $10,000,000 in construction financing for the Line Weaver project (staff used the phrase “Line Weaver Annex/Lineweaver” in the packet). Staff said they expect to work with bond counsel to determine whether tax‑exempt financing is available; if bond counsel does not approve tax‑exempt issuance, the authority may accept a taxable rate estimated in staff materials (the staff presentation described a taxable interest example of 6.75 percent). The motion included language allowing staff to accept tax‑exempt terms if counsel approves; the motion passed on roll call.

Board members asked about schedule and contractor readiness. Staff said closing on infrastructure financing would allow site construction to begin; contractors cited as familiar with similar work include AJ Excavating and local builders who participate in affordable‑housing projects. Staff estimated model units and home construction could be underway in mid‑summer of the next construction season, with ground work beginning sooner once closing occurs.

Commissioners discussed opportunities to coordinate with the city on grants for traffic improvements, stormwater and Safe Routes projects that could reduce Bluestone’s capital burden. Staff said the mayor had signaled support for the project and that the authority would continue outreach to city staff about potential grants and contributions.

Roll‑call votes on the Bluestone loan, the E&S bond authorization and the Line Weaver financing passed with the same four commissioners recorded as voting yes (Gil Coleman, Kevin Kaufman, Luciana Benjamin and Amanda Leach); several commissioners were absent for those roll calls. No recorded no votes were cast at the roll calls provided in the transcript.