City picks Penrose to negotiate for Neff Avenue affordable housing site; council gives staff ‘blessing’ to proceed

Harrisonburg officials told council they received 12 responses to a development opportunity for the Neff Avenue city‑owned parcel and recommended Penrose, a national mixed‑income developer, to negotiate a contract.

Housing coordinator Liz Webb said the RFP sought a partner that could deliver high‑quality affordable housing, use the city‑owned land as match, and assemble financing. Penrose representatives described a development approach that focuses on resident services, sustainability and property management in‑house. Penrose highlighted prior projects where residents were able to return after redevelopment and pointed to financial partners and a strong regional team.

Council members praised Penrose’s emphasis on resident protection and community engagement but pressed for performance assurances, timelines and conditions to ensure shovels hit the ground. Several members requested a contractual timeline or conditional performance milestone so the city could move to another proposer if progress stalls. Staff said negotiations would include such protections where allowed by funding rules and state requirements.

Council did not adopt a final contract at the meeting but gave staff and the housing coordinator their support to proceed with negotiations, followed by standard public hearings and any necessary rezoning or land‑use approvals.