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Council weighs three affordable‑housing funding requests and a package of off‑cycle shelter asks
Summary
Staff presented three FY27 housing funding requests — a staff‑recommended $900,000 award for deeply affordable units, a larger Brick Lane conversion request, and a UVA‑linked preservation proposal — and council debated further support for the Kendallwood project, a rental‑arrears pilot for PHA, and gap funding for a grocery‑linked development at 501 Cherry.
Charlottesville City Manager and staff brought several affordable‑housing and shelter funding items to Tuesday’s meeting and asked council for feedback and direction.
Staff recommended supporting a Community Services Housing application requesting $900,000 to produce units at 60% area median income (AMI) or below, saying that project best aligns with the city's affordability goals. Two other proposals were discussed: a Brick Lane conversion seeking $1.75 million to produce about 192 units with a large share at 80% AMI, and a Preservation of Affordable Housing (POA) proposal that would use University of Virginia‑donated land to produce about 170 units at 60% AMI but currently lacks a staff recommendation because council direction is needed on whether to invest public funds in a UVA project.
Councilors also debated whether to add $3 million to an existing Kendallwood/Friendship Court redevelopment CIP commitment so the project meets an earlier goal of delivering 425 units. Staff warned that higher density on the remaining parcel would likely require structured parking — a material driver of per‑unit cost — and presented a choice: add funds to meet the original minimum-unit expectation or modify the agreement and accept a reduced unit count. Council members were divided: a number asked staff for more granular AMI targets and cost‑per‑unit details before committing additional funds.
Separately, staff proposed a $305,000 pilot program to add financial coaches (PHA) and create a $220,000 arrears‑matching fund to address rising rental delinquencies in certain PHA properties (including Kendallwood). Council members acknowledged similar prior efforts elsewhere that produced short‑term relief but not permanent fixes, and asked for measurable performance metrics and a two‑year pilot design before approval.
Staff also described a funding gap for 501 Cherry — a rezoned site with a proffered grocery space — and requested $700,000 in cash plus an additional $1,000,000 in a 30‑year performance agreement (tax abatement) to complete a shell so a food co‑op could pursue occupancy. Several councilors supported using gap funding to get construction underway but urged written protections and clearer commitments from the co‑op and the property owner to guard against long‑term operating subsidies.
Other off‑cycle requests included a small remaining YMCA egress funding need (~$45,000) and emergency operating support asks from PACHA and Salvation Army for a new family shelter. Staff suggested council strategic initiatives and shelter operating contingency funds as likely sources if council chooses to intervene.
Next steps: staff will return with action items that include more detailed AMI breakdowns, alternative funding structures (tax abatement vs. cash), and measurable pilot metrics for the PHA arrears program; council signaled support for the $900,000 staff recommendation and asked for negotiation and clarification on the UVA and Kendallwood requests.
