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Albemarle board backs $6.5M HUD ProHousing application to fund rental loans and small-landlord program
Summary
County staff will apply for $6.5 million from HUD's ProHousing program to create a $5M revolving loan fund for affordable rentals, a $1M small-landlord loan fund and seed funds for a county-owned site; the board unanimously adopted a supporting resolution.
Albemarle County unanimously voted to support a draft application to HUD for a $6.5 million ProHousing grant, staff said Sept. 18. Assistant Director of Housing Stacy Pethey outlined a three-part proposal: a $5,000,000 affordable rental revolving loan fund, a $1,000,000 small-landlord loan program capped at $20,000 per unit (15-year affordability), and roughly $435,000 to underwrite predevelopment and site assessment for housing on county-owned land on Mill Creek Drive.
"Staff is recommending that the county apply and request $6,500,000 total," Pethey told the board. She said the revolving fund could make 0% loans to nonprofit developers and 2% simple-interest loans to private developers; small-landlord loans would carry 1% simple interest in exchange for a 15-year affordability covenant covering housing-choice-voucher households or families at up to 60% AMI.
Board members asked practical questions about loan terms, marketing to small landlords, and whether the loans could cover repairs to existing multifamily properties with failing systems. Pethey said site-specific uses would be worked out if the grant is awarded; applications are due Oct. 15 and HUD anticipates announcing awards later this year or in early 2025. The board adopted the staff resolution supporting the application by roll call vote.
