HRHA approves $1 million predevelopment equity from Enterprise, advances Bluestone Town Center and linked senior housing projects

The Harrisonburg Redevelopment and Housing Authority on May 21 approved a resolution authorizing acceptance of an equity investment from Enterprise to support the Bluestone Town Center multifamily project and an associated senior housing development.

The move, described in a presentation during the executive director’s report, accepts a $1,000,000 allocation from Enterprise for predevelopment financing and positions Enterprise as the syndicator for both projects. Michael, executive director, said the arrangement will help build the financial stack for projects that together approach $18 million in credits and financing, and that the $1,000,000 would be repaid from developer fees at closing.

Why it matters: the equity commitment helps close gaps in predevelopment financing and aligns the two developments under a common syndicator, which staff said simplifies coordination for tax credit and other layered financing. The board approved the resolution by roll call.

Details and next steps: staff said several steps remain before vertical construction can begin. The authority must finalize a property subdivision, arrange bonding and complete infrastructure financing. Michael said the authority is working to close an infrastructure loan with a CDFI in Richmond and is awaiting an appraisal from United Bank; a delay in the appraisal contributed to a two-month delay in the financing timetable. Matt Guthrie (identified as a senior banking contact) has been working on the appraisal, staff said.

Staff described a proposed ownership structure in which the housing authority would initially hold title and transfer a 99% interest to the Enterprise syndicate while retaining a one-percent stake and a lead role in contracts and community relations.

Construction and partners: Enterprise has toured the site and is participating in weekly coordination calls, staff said. Atlantic Union Bank is being considered for construction financing for the multifamily and senior housing; Enterprise has proposed Hillsman Construction as a preferred vertical contractor for the senior and multifamily buildings. Equity Plus and other finance partners remain engaged as the development team fills out the capital stack.

Board action: a motion to approve the resolution was made, seconded and approved by roll call. Gil Coleman, Kevin Kaufman, Luciano Benjamin, Chandra Green, Kenneth Catlop, Amanda Leach and Janet Alford Rogers each voted “aye.” Michael called the roll and announced the motion approved.

Context and community relations: board members discussed neighborhood communications tied to Bluestone construction. Victoria (staff lead for community relations on Bluestone) was identified as the primary contact for outgoing communications; board members asked staff to expand notification beyond social media when on-site work begins. Directors proposed yard signs, door-hanger notices and targeted mailings in addition to the Bluestone website and Facebook page. The board agreed to stand up a small communications working group to refine outreach ahead of active construction.

Other projects: staff said the authority is also advancing Thomas Village (currently under roof and on track for a November completion) and Commerce Village work. Staff noted ongoing work to finalize funding for Lineweaver enhanced renovation efforts and said additional investor proposals are under review.

Board comment: several directors voiced support for demonstrating visible progress on housing projects and for involving city officials in groundbreaking and ribbon-cutting events.

Votes at a glance: the resolution authorizing acceptance of equity investment from Enterprise was approved by roll call.