Charlottesville council approves up to $7 million in bonds to finance Kindlewood Phase 3

Charlottesville’s city council approved a resolution at a special meeting authorizing the Charlottesville Redevelopment and Housing Authority (CRHA) to issue up to $7,000,000 in tax-exempt revenue bonds to support Phase 3 of the Kindlewood redevelopment project.

Madeline Metzler, acting housing program manager with Neighborhood Development Services, told council the bond issuance would allow Piedmont Housing Alliance (PHA) to access 4% low-income housing tax credits (LIHTC) that are essential to the project’s financing. Metzler said the issuance would be as a conduit issue by CRHA and that neither the city nor CRHA would be financially responsible for repaying the bonds: “This action supports affordable housing financing, but it does not create any financial obligation for the city or for CRHA.”

Phase 3 is planned to add 85 units, including 24 townhomes, as part of a larger Kindlewood community that Metzler said will replace roughly 150 existing townhome apartments with a 385-unit, income-tiered neighborhood. The project is planned to include resident services, a community center, a park and an early learning center. Metzler also noted that the city’s capital improvement program includes $4,150,000 for Phase 3 across fiscal years 2027 and 2028 and that those CIP funds are separate from the bond action.

Council members and meeting participants discussed the complexity of assembling the development’s capital stack and the administrative coordination required. One participant who said he had served on the PHA board for 12 years warned of the many “disparate parts” that must align to make such projects work. Councilors also addressed an earlier discrepancy in the public packet: staff and presenters said an earlier packet listed a $3,400,000 figure that did not match the amount CRHA had approved. Metzler explained the higher $7,000,000 figure was PHA’s request, that CRHA’s packet had the correct amount, and that staff had received the change too late to republish materials before the prior meeting.

A motion to approve the resolution was made, seconded and approved by voice vote; members answered “yes” when the mayor called the question. The transcript records the approval by voice but does not include a roll-call tally. The CRHA board had previously adopted an inducement resolution on March 23, and staff recommended council adopt the resolution to proceed.

The meeting ended after council completed the single action item and a separate motion and second to adjourn. No additional votes or follow-up dates were recorded in the transcript.