Improvements Coming for Richmond Housing Communities
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.