Charlottesville presents phased West Haven redevelopment plan, asks city to commit $15 million for Phase 1
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Summary
City staff and resident planners described a two-phase plan to redevelop West Haven public housing into mixed housing (senior, family, townhouses) with project-based vouchers; council was asked to formalize a $15 million city funding commitment for Phase 1 to strengthen 9% tax-credit applications.
City staff and resident planners presented a phased redevelopment plan for West Haven — the city’s oldest and largest public-housing site — and asked council to formalize $15 million in funding commitments to support Phase 1.
John, the project presenter, said West Haven currently contains 126 units on about 9.9 acres and has seen limited renovation since its 1964 construction. "West Haven is the oldest and largest public housing community in the city of Charlottesville. Has 126 units on 9.9 acres," he said, and outlined resident goals including improved health and safety, honoring the site's history, and balancing density with livability.
The plan as shown in the packet and slides proposes two components in Phase 1. Phase 1A would include a senior apartment building (68 one-bedroom units and 8 two-bedroom units) and a 5,000-square-foot health clinic; Phase 1B would be a multifamily building with 64 units and resident amenities. Together the initial parts of Phase 1 account for roughly 140 subsidized units the housing authority intends to serve with project-based vouchers. Construction financing examples presented included tax-credit equity and permanent financing lines; presenters cited a $16.1 million housing tax-credit-equity loan and $27.5 million in permanent financing in slide detail.
John said the city was being asked to commit $15 million for Phase 1 (presented as $8 million for Phase 1A and $7 million for Phase 1B) to make the project competitive for 9% low-income housing tax credit applications and to close financing gaps. He also explained cost drivers: building higher to accommodate more units requires structured parking (presenter estimated roughly $150,000 per structured parking space) and tax-credit-compliance costs that drive per-unit prices above earlier estimates.
The housing authority plans to project-base vouchers for up to 140 units in Phase 1; presenters said that would increase voucher payout obligations (presenters estimated roughly $1.5 million per year in additional voucher costs compared with current voucher averages). Staff described a phased timeline and the ability to relocate current residents into units coming online at other projects (South First Street and Sixth Street) to reduce relocation pressure.
Councilors and staff discussed funding mechanics, phase sequencing and whether townhouse units could be constructed without tax-credit layering (townhouses were noted as substantially more expensive under LIHTC rules). Councilor comments emphasized the project's urgency, potential unintended consequences, the need for resident services and neighborhood economic planning around West Haven, and the complexity of large redevelopment execution.
Presenters said the requests for funding commitments and revitalization-area designation would be before council at the next meeting to support competitive tax-credit applications.
