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 remarks said the appraisal for the land used as collateral came in at about $11,000,000. Staff also noted that United Bank would take a second deed of trust on the property; other lenders tied to low-income housing tax credit and construction financing would have priority liens. The packet referenced a previously approved predevelopment loan from Enterprise that will also support the project’s predevelopment costs.

At the meeting staff explained the guaranty structure is joint and several, meaning any guarantor could be held responsible for the full $6 million by United Bank and would need to pursue contribution from other guarantors afterward. Commissioners discussed the appraisal and the need to manage cash flow for other ongoing projects before voting.

The resolution passed on a roll call vote: Commissioner Kevin Kaufman — yes; Commissioner Shonda Green — yes; Commissioner Kenneth Kettlow — yes; Commissioner Janet Acquarajos — yes. Commissioners Gail Coleman, Luciana Benjamin and Amanda Leach were recorded absent. The resolution did not list a resolution number in the materials provided at the meeting.

Other business and votes

- Minutes: Commissioners approved the minutes from the May 21 meeting by voice vote; mover/second were not specified on the record.

- Financial reports: Staff member Michael presented the financial reports, which showed most programs tracking to budget year-to-date. The board approved the financial reports by voice vote. Staff noted a recent receipt of a service coordinator grant and temporary variances tied to payroll timing and contract payments.

- Commerce Village audit: The board received and approved a clean audit for the Commerce Village project. Staff said the audit identified no material issues and noted a developer fee and a note payable that are expected to be realized later in the project’s life cycle.

- Management reports and other routine items: The board approved the management reports and moved to cancel the HRHA’s July meeting because several staff and commissioners will attend the National Association of Redevelopment Officials (NARO) conference. The board will next meet in August and expects the August meeting to include the annual plan and program updates.

Project updates and operational context

Staff reported Commerce Village 2 is under construction with brickwork and interior testing complete on studio units; the projected completion month cited in meeting remarks was November 2025. Staff also updated the board on ongoing coordination with Ryan Homes and AJ Construction for infrastructure work tied to the financed lots, and said weekly coordination meetings with Enterprise and other partners are underway.

Staff summarized program metrics: the Housing Choice Voucher program remains the authority’s largest program; HRHA reported 764 vouchers under lease, eight vouchers issued this month, and approximately 4,800 applicants on a closed waiting list. Staff noted the agency is managing higher HAP costs tied to rent inflation and is continuing to evaluate landlord incentive options and other program adjustments.

Staff said the authority has drawn down HMIS and other grants for the coming fiscal year, and that some community partners have experienced funding cuts that strain local services; Mercy House was identified as stepping in to provide short-term rental assistance where other funding was reduced.

Closing

After votes and routine approvals, the commissioners adjourned. The board will reconvene in August 2025 for its annual meeting, when staff plans to present the annual plan, five-year plan, Housing Choice Voucher administrative plan and the continued occupancy plan.