Housing Authority reports $9.5M in housing-trust funds and advances on Commerce Village 2

The Harrisonburg Housing Authority reported one of its largest recent funding advances on March 19: nearly $9.5 million in housing trust funds split between multifamily and senior housing projects, plus a $1 million Federal Home Loan Bank of Atlanta grant and $500,000 in planning funds from Virginia Housing.

Staff said the funds include about $4.5 million for multifamily housing and roughly $5 million for a senior housing project; those awards, together with other grants, are intended to move site infrastructure and construction forward. Staff also said infrastructure bids for roads and sewer work are expected to be awarded to local contractors and that the authority hopes to close construction financing by the end of the month for site work.

The meeting included progress updates on Commerce Village 2, a project the authority expects to complete in fall with a projected October or early November certificate of occupancy. Work was delayed by about 19 days because of cold weather and snow, and staff reported the contractor plans to catch up and proceed to finishing tasks. The authority reported drawing down some bridge loans early and is now primarily using ARPA funds to avoid interest costs; congressional direct-spend reimbursements for predevelopment (about $300,000) are expected to be returned to the Housing Authority.

Staff described a $6 million revolving loan arrangement under negotiation with United Bank to support single-family and townhome construction, where sales would replenish the fund for future loans. Officials said some options include selling townhouse lots to a third party or using in-house financing, and that site infrastructure financing remains the linchpin for next steps.

The board received these updates as part of a broader summary of new funding, grants and project schedules that staff said will enable site work and continued development activity this year.