Roanoke housing authority warns proposed federal cuts would strain local programs; outlines 86‑unit Old Spanish Trail project and Cherry Hill opportunity

The Roanoke Redevelopment and Housing Authority told City Council that a proposed federal budget would sharply reduce funding for public housing and tenant‑based rental assistance, jeopardizing local programs and prompting regional advocacy and contingency planning.

Executive Director David Bustamante said the authority manages eight public housing developments (281 units) and has 2,067 housing choice vouchers allocated, of which 1,867 are in use. He cautioned Council that the president's proposed budget "cuts our public housing and tenant based rental assistance ... by 43%" and would eliminate programs such as CDBG and family self‑sufficiency that support residents' paths to employment and stability. Bustamante relayed statewide figures from Virginia Housing to illustrate potential impacts, noting tens of thousands of families use vouchers and tax credit housing in Virginia.

Frederick Gussler of RRHA presented a planned redevelopment at 4301 Old Spanish Trail: an all‑new, 86‑unit affordable housing development with an approximate $27,000,000 total development cost, 22 accessible units and 12 units reserved for the city’s continuum of care. Gussler said the authority applied in March for low‑income housing tax credits and requested $1,000,328 from the city's Community Development Block Grant fund and $400,000 from HOME funds to support the project. He said the development would use project‑based vouchers to stabilize operations and expected construction to start in 2026 if tax credits are awarded.

Vice Chair Carr described disposition and rezoning opportunities for more than 70 Cherry Hill lots off Orange Avenue and requested council consideration to change recreation/open‑space designations to residential to encourage appropriate housing development with neighborhood involvement.

Council members asked detailed questions about voucher utilization, the size of wait lists (Bustamante said the 2022 wait list opening yielded about 4,000 applicants), escrow and the family self‑sufficiency program (billed as a five‑year program where earned escrow and interest accrue to participants upon successful completion), and possible lobbying and letters to federal representatives. Multiple council members volunteered to assist with drafting outreach letters and suggested inviting state officials to see local work in person.

While staff acknowledged the uncertainty of federal appropriations, both Council and RRHA emphasized contingency planning, regional coordination and outreach to congressional offices to oppose proposed cuts. The joint meeting did not include a vote on funding requests; staff signaled they would return with follow‑up materials and continue advocacy.