Partnerships Lead to New, Affordable Housing in NoVa

 

Courtesy of KGD Architecture

In an area known for high housing costs, hundreds of affordable, new residential units are now ready — thanks to a collaboration between Virginia Housing and Arlington Partnership for Affordable Housing (APAH). The Queens Court community is a welcome addition to this densely-populated section of Northern Virginia. The 12-story development in the Roslyn-Ballston area is scheduled to open in June 2021. 

 

“We took a site that had only 39 units and today it has 249,” said David White, Lending Group Manager at Virginia Housing. “Plus, this community is in a high-income area, so to add this type of affordable housing here makes this project extraordinary.”

 

Nina Janopaul, APAH President and CEO, agrees. “The fact that we are extending affordable housing provides a huge impact — for residents of Arlington in particular,” said Janopaul. “The need is here, and with Queens Court as home to 249 families, this community will make a huge difference in the lives of many.”

 

Virginia Housing served as administrator of various loans helping to make Queens Court possible; we also allocated 4% and 9% federal Housing Credits, which generated $43 million in equity, plus we were able to bring another $28.5 million to the project through other Virginia Housing programs, including our REACH Virginiaprogram. Total financing for the project totaled over $107 million.

 

Other partners with Virginia Housing and APAH include Arlington County, Bank of America, Donohoe Construction Company and KGD Architecture.

 

“It’s amazing to see all the sources work in concert,” said White. “This type of coordination and collaboration is what it takes to do a large project in Northern Virginia. 

 

APAH acquired the original 39-unit property in 1995, and the new Queens Court was years in the making. In 2015, an integrated planning study was formally adopted for the area, which included a new public school, a fire station and market-rate housing; it also unlocked density so Queens Court could be redeveloped into 249 units, and the project broke ground in 2019.

 

Queens Court now offers two- and three-bedroom units, plus 150 underground parking spaces, a rooftop community center and an on-site 9,000 sq. ft. public park with playground. The community is also certified EarthCraft Gold, barrier-free and conveniently located less than a half mile from the Rosslyn Metro. 

 

"Providing residents with access to affordable housing in vibrant areas that are hubs for everything from jobs and schools to amenities — makes a huge difference in their quality of life,” said Janopual.

Improvements Coming for Richmond Housing Communities

Above: one of five Richmond housing communities slated for major renovations

Teamwork is essential to making sure Virginia residents have access to safe, affordable, housing. To that end, Virginia Housing is working with a team of housing partners to renovate 304 units in five different properties — and we’re providing $26.3 million in loans plus an allocation of federal Housing Credits to help make it happen.

The five properties, which are all multifamily, are grouped into two developments known as Richmond Family Housing 1 and Richmond Family Housing 2. The goal is to take these properties, which are currently public housing, and convert them to private housing with extensive upgrades to benefit the residents. 

The groups working with Virginia Housing on this project include the Richmond Redevelopment & Housing Authority (who currently owns the properties), Housing & Urban Development (HUD), Michaels Development Company (who will be the new owner) and Red Stone Equity Partners (who are investing in the project via the federal Housing Credit program, and will be partners in ownership with the Michaels organization).

Extensive Exterior and Interior Improvements

The five properties involved are scattered in multiple locations throughout Richmond, and are older and in need of renovations. Each will receive an extensive interior rehab in addition to new roofs, updated exterior paint and new landscaping. 

 

Public to Private Transfer 

The developments are Rental Assistance Demonstration (RAD) transactions, part of a HUD program in which public housing properties are transferred to a private entity — in this case, Michaels Development Company — and provided project-based housing vouchers. The current tenants will not be displaced; after the transfer of ownership and upgrades are complete, they will enjoy an improved quality of life in their newly renovated homes.    

 

With the assistance of federal Housing Credits and attractive tax-exempt bond financing, a significant renovation of these properties is planned,” said Brad Beaman, Senior Development Officer at Virginia Housing. “In addition, each of the properties will benefit from a project-based voucher contract from HUD on all units.” 

 

The coming improvements are examples of Virginia Housing’s commitment and initiative to working with other affordable housing parties. Our goal is to work with our partners to find creative ways to finance the transformation of public housing — and to provide renovated, quality affordable homes for the people who live there.

Grant Helps Plan Next Chapter for Historic Chincoteague Firehouse

Courtesy of Hill Studio

One of the hottest projects Virginia Housing is working on is the Community Impact Grant for the former Chincoteague Firehouse, located on Main Street in Chincoteague, Virginia. The $20,000 grant is being used to pay for a feasibility study and architectural report, which will help determine how to best use the building for residents of the island. The grant is made possible through Virginia Housing’s REACH Virginia program. Each year, Virginia Housing contributes a large portion of their net revenues into this program, providing funds to help meet critical housing needs across the state. 

 

Providing Spaces for Residents to Live and Work

 

Proposals to be considered for the firehouse building include workforce housing and parking as well as commercial spaces. The historic building dates back to 1930 and is now owned by the town. In 2019, a new firehouse was slated for construction and town leaders began considering how best to use the older building going forward. According to Chris Thompson, Virginia Housing’s Director of Strategic Housing, the town of Chincoteague realized that they had a lack of quality housing for residents, so they acquired the old firehouse, hoping to use it to benefit the town as well as preserve its history. 

 

“Virginia Housing is excited that the town of Chincoteague took the initiative to buy this building so that residents could have a great place to live and work downtown,” said Thompson. “A project like this can increase the vitality of the area, while assisting the local workforce.” 

 

Addressing the Need for Affordable Housing

 

While Chincoteague is a destination for many tourists and vacation homeowners, increased housing costs have led to a loss of year-round residents. Adding new possibilities with the firehouse project, along with preserving the historic character of the building, could bring new affordable housing opportunities to the area.

 

In addition to recommendations for housing, the feasibility study will help generate a cost estimate and prepare development scenarios. The preliminary architecture and engineering report is needed to investigate the major infrastructure and building components to determine what issues exist, general solutions to the identified problems and costs involved. The firehouse is also in a flood zone, so it will require a design to mitigate issues. The town is currently reviewing designs submitted by Hill Studio.

 

The Community Impact Grant is the starting point for creating a much-needed addition to downtown Chincoteague’s housing and commercial district. 

 

“The grant and studies demonstrate Virginia Housing’s commitment to working with local governments,” said Thompson. “We’re all excited to see what happens next!” 

Hosting Free Webinars for Military Homebuyers

 

Are you thinking about buying a home, but not sure where to start? Virginia Housing can help. 

Chatting it up LIVE: Homebuying with Virginia Housing is a series of free one-hour webinars designed to help VA-eligible homebuyers learn about the process of buying a home. Webinar attendees will be entered into a drawing for a $100 gift card after each session.

“These webinars are excellent resources for service members and veterans looking to purchase their first home,” said Briana Noel, a Virginia Housing Education and Training Officer and Army reservist. “We will discuss topics such as preparing for homeownership, VA loans and veteran-specific incentives. Attendees will also learn about homebuyer resources and how to access them. Our service members have selflessly served our country and we want to take the opportunity to serve them.”

Learning About Homeownership

Virginia Housing will host the following free online webinars to discuss important topics for homebuyers:

·         Preparing for Homeownership, Tuesday, April 20, 2021 – noon to 1 p.m.

Buying a home may be the largest transaction you’ll ever make. Being a homeowner is exciting, but it’s also a major financial responsibility and one you need to prepare for. A military financial educator can help you plan and get a handle on your finances. 

·         Exploring Lenders, Mortgages and the Loan Process, Wednesday, April 21, 2021 – noon to 1 p.m.

Working with a lender before you start your housing search can help you set realistic expectations about the cost of a mortgage loan and what you will be able to afford. Resources and benefits for the military buyer is our focus. A panel of lenders will discuss VA eligibility, the funding fee, Virginia Housing Closing Cost Assistance grant and much more.  

·         Finding the Right Home, Thursday, April 22, 2021 – noon to 1 p.m.

Military homebuyers often face the unique challenges of learning a new area and the concerns of moving again in the future. A real estate agent can help you find the home you’ve been dreaming about and serve as a knowledgeable partner, capable of walking you through the entire homebuying process.

 

The sessions will feature a panel of subject matter experts, including housing counselors, lenders and real estate agents. To learn more and register for the free webinars, visit the Virginia Housing Homebuyer Event Calendar at VirginiaHousing.com/FindAClass.

“Even with the challenges that the pandemic has brought us, motivated buyers are still purchasing homes through the use of innovative technology, like virtual counseling sessions and home tours, online loan applications and electronic closings,” said Noel. “We look forward to supporting Virginia’s service members and veterans through these unprecedented times by offering these safe and useful webinars at no cost.”

A new method of construction is bringing more affordable housing to Fishersville, Va.

 

It’s no secret that we are living longer. Today, there are more than 46 million adults age 65 and older living in the United States. That number is projected to double by the year 2050.

While living longer is a good thing, it also has some challenges. In the housing world, an older population living on fixed incomes means a need for more housing – and not just any housing – but the kind that is affordable, accessible and safe.

How do we tackle that? We get creative and encourage others in our industry to do the same.

 

Fishersville

In the small town of Fishersville, nearly 27% of the adult population is over the age of 65. Compared to other towns throughout the state, that’s relatively high. In fact, in Virginia, seniors only make up about 16% of the population, according to the United States Census Bureau.

Long-time real estate developers William and Richard Park of Charlottesville-based Pinnacle Construction and Development Corp. recognized the need for senior housing in Fishersville but were struggling with how best to build an attractive, affordable apartment complex while keeping costs down and shortening construction time.

“I thought, ‘what is something we could do that is different than how we typically do garden style apartments in this area,’” said William Park.

The answer? Modular construction.

Modular construction is a process in which a building is constructed off-site in a manufacturing facility and then delivered to the job site where the prefabricated pieces are assembled. The process is considered eco-friendly, cost-effective and usually takes a lot less time.

Intrigued by the process, the Parks put together a proposal for a development called Gateway Senior Apartments – an affordable 80-unit, one- and two-bedroom apartment complex for adults age 55 and older. All of the units would be income-restricted with rent at or below 60% of the area’s median income.

Another bonus is the development’s location. The senior apartments will be less than a mile from the Augusta Health Regional Hospital and just across the street from an assisted living community and medical offices.

 

Putting the Pieces Together

The creative idea behind Gateway Apartments led the Parks to apply for funding through Virginia Housing’s new Innovative Demonstrations Program. The program seeks to spur more affordable housing by supporting technological innovation in the housing industry. To qualify, projects should use generally available technologies and techniques that vary significantly from approaches usually taken in housing construction and they must be below the median cost of new single-family housing in the region of the proposed site.

A panel of housing experts reviewed the Parks’ proposal and awarded them 9% federal Housing Credits, equal to $ 14 million. From there, the Parks applied for financing through Virginia Housing and received $6.4 million.

“This is the first time we’ve financed a modular apartment complex,” said Kristina Armistead, Development Officer with Virginia Housing. “That’s what makes this project so unique.”

Armistead worked closely with the Parks on the financing side. She said the development not only meets a great need in Fishersville, but as the first modular constructed building in the area, it could open the door for future similar developments.

The Parks are also working with The Richman Group, which is funding the Housing Credit equity, and Merchant’s Bank, which is providing the developers a bridge loan during construction.

 

Breaking Ground

In their 35 years of experience, this will be the Parks’ first time using modular construction, and they are looking forward to starting work.

When the prefabricated buildings arrive, they will be 75% complete. Pinnacle will tie in all the mechanical systems like HVAC, plumbing, sprinkler and electrical, while performing the exterior work such as brick, vinyl and the roof.

“There is a lot of coordination between our architect and the modular builder’s design team,” said William Park.

A project like this typically takes between 18 and 22 months, but modular construction should shorten that time frame by six to seven months.

The Parks plan to break ground by December 2020, and the project is scheduled to be completed by the end of 2021.

Addressing the Homeownership Gap

When it comes to homeownership, African Americans and other historically underserved communities continue to fall behind other households, by nearly a 21% margin.

Why does the gap exist?

 

Decades of discriminatory housing practices beginning in the 1930s made it nearly impossible for African Americans to purchase a home. It wasn’t until the Fair Housing Act of 1968 was passed – which made housing discrimination illegal – that things began to change. Though progress has been made over the years, there’s still much to do. Ultimately, closing the homeownership gap will require a collective action by government stakeholders, industry, the private sector, nonprofits and academia.

Addressing the barriers to minority homeownership is a key priority for Virginia Housing.

To help remove these barriers, we’ve dedicated $1 million toward housing education and counseling, and partnered with organizations like Prince William County’s NAACP chapter, where we presented a four-part online series for first-time homeowners. The series included information about our first-time homebuyer programs, how to work with a Realtor, how to work with a lender and the benefits of working with a housing counselor. Because of the program’s success, we expanded the effort to NAACP chapters across the state.

“This was a great opportunity to share our free consumer resources with such a historical group as the NAACP, which for decades has focused on political issues, education, social awareness and equality for people of color,” said LaDonna Cruse, Virginia Housing’s Education Manager.

We’ve also created a Minority Business Advisory Council to promote the participation of minority-owned businesses and partnered with the National Association of Minority Mortgage Bankers of America and the National Association of Real Estate Brokers to help find ways to break down barriers to homeownership. In addition, we launched a homeownership marketing campaign designed to reach a broader multicultural audience.

Other housing organizations across the country are also making big steps toward closing the gap. Enterprise, a national nonprofit focused on affordable housing, created a $3.5 billion initiative that establishes an equitable path forward for Black, Indigenous and People of Color (“BIPOC”) and other historically marginalized housing providers. Netflix Inc. is a big contributor, committing $25 million to the cause.

 

Similarly, LISC – another nonprofit that connects communities with public and private resources – created Project 10X, a $1 billion initiative aimed at closing the racial health, wealth and opportunity gaps.

 

“Despite the challenges that have been thrown our way due to COVID-19, we will continue our efforts to increase homeownership education among African Americans and other underserved groups,” said Cruse. “Our newest initiative, ‘Chatting It Up Live: Homebuying with Virginia Housing,’ is a series of virtual sessions that address frequently asked questions about the homebuying process. This effort demonstrates that the dream of homeownership is still very much alive and attainable for people of color — even during this pandemic.”

Anyone looking for an affordable home in Virginia can visit VirginiaHousing.com to take advantage of programs designed to help make homeownership a reality.

Size doesn’t matter when it comes to affordable housing.

         

Zarina Fazaldin, a small real estate developer in Richmond, has worked with Virginia Housing for several years rehabilitating old houses and turning them into multi-family rentals.

When it comes to working with rental housing developers, one size does not fit all.

“We work with a whole range of developers,” said Chris Thompson, Director of Strategic Housing at Virginia Housing. “From small, private and nonprofit developers to very large-scale for-profit and not-for-profit developers.”

What separates them are the levels of investment and experience. Typically, large developers are putting together proposals upwards of $5 million, have their own brokers, and are armed with years of experience. Smaller developers, on the other hand, typically propose developments under the $5 million mark and are less than 10 units.

In recent years, Virginia Housing has made a concerted effort to create a more robust network of smaller developers by creating a Strategic Lending Department, new community outreach initiatives and educational tools.

“In many cases, smaller developers don’t know where to start,” said Wally Robinson, Strategic Lending Officer with Virginia Housing. “They have great ideas but might not have direction. We work closely with them and help them put their ideas on paper, come up with a strategic plan and get things going.”

“Pre-COVID-19 we would go meet with them one-on-one and walk the property site with them,” added Thompson. “Now, we have transitioned a lot of that to virtual discussions, but we remain just as involved. We discuss finances, feasibility studies, how to apply for grants that can help them with market analysis and project planning, as well as determine if their development is viable.”

Zarina Fazaldin, a Richmond developer and community activist, has worked with Virginia Housing on revitalization projects since the early 2000s.

Most recently, funding she received through Virginia Housing allowed her to purchase an abandoned historic mansion in the Jackson Ward section of Richmond and transform it into a four-unit affordable housing complex. The two-story house was built in 1915 for Dr. William Henry Hughes, a prominent African American physician at the time.

Without the low-interest loan from Virginia Housing, Fazaldin said she would have had to separate the property into 10-12 units instead of four just to make a profit. That many units would have taken away from the character of the home, which was built by Richmond’s first African American architect Thaddeus Russell.

“Virginia Housing’s help didn’t just allow me to purchase the property, but to keep its historical character inside and out,” said Fazaldin.

While Fazaldin loves old houses and transforming them into something new, she’s most passionate about how that transformation affects the surrounding community.

“It’s so important, especially in the Richmond area where there are so many historic homes,” she said. “The neighbors get excited, and they start working on their houses too and then others purchase homes in the community. Eventually these once-ignored and abandoned neighborhoods start to come back to life.”

This kind of result is a perfect example of how small developers can make a big impact.

Urban Hope -- another small developer based out of Richmond -- recently worked with Virginia Housing for the first time. The small faith-based nonprofit has been in operation for nearly 20 years and focuses on providing affordable housing opportunities and financial health education to those in the East End of the city.

“They are a well-organized group that fundraise their money, collaborate and bring in investors and truly focus on individuals and their housing needs,” said Robinson, who worked with Urban Hope on the lending side.

Virginia Housing provided $415,000 in funding through its REACH Virginia program to help cash out short-term investors and provide permanent financing for an affordable housing development Urban Hope owns in the Church Hill area.

Urban Hope’s Executive Director Sarah Hale said the experience was amazing, and that she hopes Virginia Housing will “continue to be an essential partner” in future deals.

“Many people pointed us in the direction of Virginia Housing as a place of great resources in terms of guidance, information and potentially capital,” said Hale.

Feedback like Hale’s is exactly what Robinson and Thompson want to hear as they continue to spread the word about Virginia Housing’s programs and assistance for small developers throughout the state – particularly in rural areas. “We really want to focus on the underserved markets,” said Thompson. “I think a lot of small developers don’t know what’s available and don’t realize the level of direct technical assistance we can provide in addition to financing.”

To learn more about partnering with Virginia Housing, contact Chris Thompson at chris.thompson@virginiahousing.com.