CRHA board to seek city approval to form nonprofit to expand fundraising and resident services

Charlottesville Redevelopment and Housing Authority staff presented a plan to create a nonprofit organization that would broaden the authority’s fundraising options, accept donations of money and property, and support resident-led programs. The board agreed to seek city council approval and to designate commissioners to present the proposal to council.

Deputy Executive Director Kathleen outlined the rationale: because CRHA is a quasi-government agency it cannot be a 501(c)(3) and is therefore limited in what grants and donations it can accept. She said the nonprofit would allow CRHA to pursue fundraising and in-kind contributions, provide stipends to residents, fund education and job training, support redevelopment soft costs, and offer housing stability funds. Kathleen said staff had discussed an initial, modest fundraising target of about $100,000 in the first year to cover capacity building and seed programs.

CRHA counsel Daphne Carnes explained the formation steps: verify the chosen name with the Commonwealth of Virginia, file articles of organization with the State Corporation Commission, prepare bylaws and conflict-of-interest policies, and maintain separate books, bank accounts and financial reporting for the nonprofit. Carnes advised keeping early public filings and the initial 501(c)(3) application scoped to realistic, verifiable activities (for example, describing potential real-estate donations only as a future possibility unless fair-market valuations and acquisition plans are available).

Staff said the nonprofit would initially “mirror” CRHA staffing—existing CRHA staff would support the nonprofit while separate governance, accounts and audits would be maintained. Proposed early staffing/funding details included increasing grant-writing capacity (one grant writer position at roughly 50% time in year one) and dedicating portions of board time to donor stewardship and outreach. Staff also raised the possibility of hiring a consultant to accelerate the launch, and emphasized that fund controls and separate bank accounts would be required.

The board agreed to pursue city council approval as the next formal step. Commissioners volunteered to present the plan to council when an agenda slot is available in September or October; staff said two commissioners would attend council to request approval for CRHA to form the nonprofit. No final decision on bylaw language, a formal name, or a consultant contract was made at the meeting.

Board members asked staff to prepare a short presentation for council and to coordinate with counsel on filings and draft bylaws in advance of the council appearance.