June 25, 2019

Overhaul of Norfolk Complex to Benefit Low-income Households

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An aging public apartment complex on Virginia’s seaboard is being upgraded with help from a multi-layered financing package from VHDA.

The Diggs Town public housing development was built in 1952 and renovated in the 1990s, but is now in need of another renovation. VHDA’s financing will allow the property’s owner, Norfolk Redevelopment and Housing Authority, to restore it both functionally and aesthetically.

The renovation of Diggs Town is part of a HUD program known as RAD, which seeks to preserve affordable housing. The project will restore a nearly 70-year-old complex, and provide many quality-of-life improvements for residents:
VHDA construction standards will improve grading to prevent flooding and allow for increased walkability, as well as provide asbestos removal and system upgrades.
New lighting will improve security.
New appliances and energy-efficient windows will help keep utility bills lower for residents.

When work is completed (scheduled for early 2021), 222 modernized apartments will be occupied by tenants making no more than 60 percent of the area’s median income. A second phase of redevelopment is in the planning stages.

VHDA is providing $10.3 million in permanent financing for the Diggs Town renovation. To attain a low interest rate, the loan uses funds from VHDA’s REACH Virginia program. VHDA contributes a significant portion of our net revenues to this program each year to support housing for low-income families, the homeless, seniors, people with disabilities, and those who live in high-growth or high-cost areas. Money from REACH Virginia also helps support urban revitalization and preservation of small towns.

In addition to the financing, VHDA is issuing federal Housing Credits (sometimes called Low-Income Housing Tax Credits), which incentivize property owners and private investors to build or rehabilitate affordable rental housing. As a result, a certain number of units are set aside for lower-income households, while other units have higher rents and no maximum household income requirement. The property also accepts Housing Choice Vouchers.

Diggs Town is a prime example of how VHDA’s behind-the-scenes work brings state and federal programs together to support housing agencies, property owners and even private investors as they improve Virginia’s housing environment.

Danville Pilot Project to Feature New Generation of Manufactured Homes

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New and improved manufactured homes are now on the market, and with some help from VHDA, a pilot project is being planned in Danville.

Manufactured homes are built in factories in sections, then transported and assembled at the homesite. This process has several advantages: costs are more predictable, homes are usually less expensive than their site-built counterparts, and construction timelines are reduced – in part because weather delays can be avoided.

A Kentucky-based organization named Next Step will build the homes for the pilot. Next Step was founded by an Appalachian native who saw people in her region struggling to buy and maintain a home. It became a nonprofit organization in 2012, and today its mission is fully aligned with VHDA’s – making sustainable and affordable homeownership a reality for lower-income households.

In recent years, Next Step has transformed the quality of its manufactured homes by improving their durability, energy efficiency and aesthetics. In addition to permanent foundations, today’s Next Step homes have pitched roofs, front porches and attractive designs, and offer low operating, maintenance and utility costs.

VHDA’s strong working relationship with Danville officials helped jumpstart discussions between the city and Next Step about the upcoming pilot, which is expected to include six to eight homes, all ready for occupancy by end of 2019. The homes will be located in the same neighborhood as the VHDA-sponsored Center for Housing Education. The center offers resources and programs to make purchasing and maintaining a home an easier process, especially for first-time buyers.

VHDA sees manufactured homes as an important piece of the affordable housing puzzle. While not for all homebuyers, they represent a viable option for lower- and moderate-income households, all the more so because of their improved aesthetics and quality.

“We’re hoping the Danville pilot will change some of the public’s misperceptions about manufactured homes,” says Chris Thompson, VHDA’s director of strategic housing. “Today these homes are more attractive, more durable and more energy-efficient – and many families will view them as comfortable and affordable places to live.”

For more information, please contact Chris Thompson, VHDA’s Director of Strategic Housing, at 804-343-5692 or Chris.Thompson@vhda.com.

VHDA + Virginia’s Planning District Commissions: Working Together to Jumpstart Housing Development

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Because we share a goal of creating sound, livable and connected communities, VHDA is proud to partner with Virginia’s 21 planning district commissions (PDCs).

Virginia’s PDCs are made up of elected officials, citizens appointed by local governments, and an executive director selected by the commission itself. PDCs assist governments with grant applications, program implementation, and land-use planning and mapping, among other activities. They also work closely with local and state agencies on highway planning, ridesharing, airport planning and specialized transit projects.

VHDA supports PDCs and local governments in their planning efforts; one of the most important ways we help is through our Community Impact Grants (CIGs). These grants are used to revitalize communities and spur economic growth through the development of mixed-use/mixed-income properties. Many PDCs have used grant funds for regional market studies or comprehensive housing plans, which serve as strategic playbooks. Such data-driven reports are especially valuable, because housing development is a long and complex process whose success pivots on many variables. Having complete and accurate upfront data yields a more successful outcome.

We’ve met with a number of PDCs to offer our housing expertise, including:
Central Shenandoah PDC (based in Staunton).
Commonwealth Regional Council (Farmville).
George Washington Regional Commission (Fredericksburg).
Middle Peninsula PDC (Saluda).
New River Valley Regional Commission (Radford).
Northern Shenandoah Valley Regional Commission (Front Royal).
Rappahannock-Rapidan Regional Commission (Culpeper).

During our meeting with the Rappahannock-Rapidan Regional Commission, we gave a presentation on the importance of affordable housing to a region’s economic growth. Their executive director remarked that the information shared would be very helpful in pushing their discussion of housing development forward.

Our longstanding partnership with PDCs throughout the state will continue, as we work together to put quality, affordable housing within reach for more Virginians.

For more information about VHDA planning resources, including Community Impact Grants, please contact Chris Thompson, VHDA’s Director of Strategic Housing, at 804-343-5692 or Chris.Thompson@vhda.com.