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Charlottesville approves up to $8.7 million loan for Carlton Mobile Home Park redevelopment
Summary
City council approved a funding agreement to support acquisition and redevelopment of Carlton Mobile Home Park, authorizing up to $8.7 million in a forgivable loan over 40 years to a joint venture of Piedmont Housing Alliance and Greater Charlottesville Habitat for Humanity to build at least 180 units with minimum deep‑affordability requirements.
Charlottesville’s city council unanimously approved an ordinance authorizing an up‑to $8.7 million forgivable loan to support the acquisition and redevelopment of Carlton Mobile Home Park, council records show.
Brenda Kelly, the city’s redevelopment manager, told council the loan would support acquisition by Piedmont Housing Alliance and Greater Charlottesville Habitat for Humanity and formation of a 50/50 joint venture, Habitat Carlton Alliance LLC, to develop the property. “This is for the city funding of the acquisition of the Carlton Mobile Home Park property by Piedmont Housing Alliance and Greater Charlottesville Habitat for Humanity,” Kelly said.
Under the terms described at the meeting, the financing package is intended to cover purchase and financing costs. The agreement sets a minimum of 180 residential units, with at least five rental units reserved for households at 0–30% of area median income (AMI) and at least five rental units for households at or below 50% AMI. Kelly said the loan would be forgivable over a 40‑year term.
Councilors asked detailed questions about how ongoing funding commitments would be handled. Kelly and staff said the agreement contemplates future appropriations but does not bind later city councils to make payments. If a future council declines to appropriate later payments, the redevelopment partners would be required to return funds provided to date to the extent proceeds exist, councilors were told.
Councilor discussion emphasized both urgency and complexity: staff said the property was expected to close this week, which drove the request for an expedited vote. After motions and a second, council voted 5–0 to approve the ordinance and waive the second reading.
The agreement also creates a redevelopment planning committee with one city‑manager appointee and one city councilor. Staff said additional appropriations will be required in future meetings to cover scheduled payments and closing costs.
The ordinance passed at the meeting represents a financing and redevelopment commitment at the level presented; additional project details, funding sources and affordable‑unit allocations will be determined as the partners finalize financing and apply other funding programs (for example, low‑income housing tax credits and state grants), Kelly said.
Next steps: staff said the acquisition is scheduled to close imminently and that council will see follow‑up appropriation items at the next meeting to complete the financing steps.
