HRHA commissioners approve $6 million infrastructure loan, authorize guaranty tied to lot sales

The Harrisonburg Redevelopment and Housing Authority commissioners on June 18, 2025, voted to approve a resolution allowing the authority to enter a $6,000,000 revolving infrastructure loan with United Bank to fund site infrastructure for planned housing lots in Harrisonburg.

The loan will be repaid in part through proceeds from future lot sales to a homebuilder identified in meeting materials as Ryan Homes; HRHA is listed as a guarantor for $3,000,000 (described in staff materials as 50% of the guaranty obligation). The commissioners voted by roll call; four commissioners present voted in favor and three commissioners were recorded absent.

Why it matters: the financing is intended to fund infrastructure work that will enable parcel sales and construction of residential units tied to HRHA development projects, including the Commerce Village-related efforts staff discussed at the meeting. Staff indicated the authority’s obligation under the guaranty is joint and several with the other guarantors, increasing HRHA’s contingent liability until lots sell and loan proceeds are repaid.

Details from the meeting

Staff presented a packet summarizing loan terms and a recent appraisal. Meeting materials and staff…