AGENDA DATE: 3/4/2026
TITLE:
Proposed Projects for Affordable Housing Investment Fund (AHIF) Support
SUBJECT/PROPOSAL/REQUEST: Consideration of proposed uses of the Affordable Housing Investment Fund (AHIF).
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Herrick, Curfman, Dimock, Pethia
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Since Fiscal Year 2019, Albemarle County has maintained the Affordable Housing Investment Fund (AHIF) to support housing initiatives that further the County's strategic and housing goals, which were adopted by the Board on July 7, 2021.
On May 21, 2025, the Board held a work session to discuss changes to the way the AHIF is administered. Board members expressed support for the new fund guidelines with minor changes, which staff incorporated into the fund structure. Under the new program guidelines, AHIF applications are rated against a series of metrics with applications needing to score at least 75% of the total available points to be considered for funding. Beginning in FY 2026 AHIF funds are being disbursed as follows:
40% of uncommitted funds will be provided as grant funding, and 40% of uncommitted funds will be provided as low-cost loans with the remaining 20% of the fund balance reserved for staff identified projects addressing an emerging housing need.
On January 9, 2026, staff began accepting applications for AHIF funding. At the close of the application period on January 31, 2026, a total of seven applications had been submitted with a total cumulative request of $7,343,652.
STRATEGIC PLAN: Quality of Life: Encourage a vibrant community with economic and recreational opportunities that serve all community members.
DISCUSSION: At the completion of the application process, an inter-departmental County team reviewed the submitted AHIF applications and rated them using the scoring matrix. To accommodate the funding requests of all applications that reached the scoring threshold to be considered for funding (see Attachment A), staff recommends the following funding levels, which are equal to the percentage of scores received:
Agency: Habitat for Humanity of Greater Charlottesville
Project: Southwood Rentals 20
Amount: $1,368,000 ($918,000 in grant funding and $450,000 in loan funds)
AHIF Cost-per-Unit: $68,400
Use of Funds: Construction of 20 affordable rental units in the Southwood community for households
with incomes at or below 80% AMI
Agency: SupportWorks Housing
Project: Vista29
Amount: $317,495
AHIF Cost-per-Unit: $3,969
Use of Funds: Replace federal sustainable energy tax credits lost when program was ended this
year and construction of a transit stop to serve future Vista29 residents.
Agency: Piedmont Housing Alliance
Project: Vista29
Amount: $1,191,520
AHIF Cost-per-Unit: $14,894
Use of Funds: Capital improvements to existing properties serving 155 low- to moderate-income
households
Agency: Local Energy Alliance Program (LEAP)
Project: Energy Efficiency
Amount: $605,500
AHIF Cost-per-Unit: $11,009
Use of Funds: Improve home energy efficiency for 55 low- to moderate-income households in
Albemarle County
Staff also recommends providing $110,000 of the AHIF balance reserved for staff-identified projects to the Salvation Army. These funds would provide operational support for the Salvation Army’s newly renovated family shelter. The shelter offers 7 units designed to house families experiencing homelessness, providing support to a severely underserved demographic in the Albemarle-Charlottesville area.
BUDGET IMPACT: The total amount of recommended FY 2026 project funding equals $3,592,515. After accounting for the proposed project funding and previously approved project funding a total of $1,367,706 would remain in the AHIF to support future affordable housing projects.
RECOMMENDATION:
Staff recommends the Board approve funding for the recommended projects from the FY 2026 AHIF at the recommended funding levels.
ATTACHMENTS:
A - FY26 AHIF Application Summary