AGENDA DATE: 8/19/2026
TITLE:
Title
Affordable Rental Housing Incentive Program (ARHIP) Request - Attain on 5th
BODY
SUBJECT/PROPOSAL/REQUEST: Consideration of recommendation to award incentive payments for the Attain on 5th project through the Affordable Rental Housing Incentive Program (ARHIP)
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Dimock, Herrick, Curfman, Sumner, Pethia
PRESENTER (S): Stacy Pethia, Director of Housing and Jacob Sumner, Chief Finance Officer
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: On February 21, 2024, the Board of Supervisors approved implementation of the Affordable Rental Housing Incentive Program (ARHIP). The ARHIP supports developers’ efforts to include affordable dwelling units in their residential construction projects. This incentive program is available to residential construction projects that contain 11 or more residential units, and which make at least 20 percent of the total residential units available to households with incomes at or below 60 percent of area median income in accordance with Housing Albemarle. The incentive is provided as a rebate of fifteen (15) percent of the project’s real property tax collected each year for a 30-year term.
STRATEGIC PLAN: Quality of Life: Encourage a vibrant community with economic and recreational opportunities that serve all community members.
DISCUSSION: In December 2025, Bonaventure submitted an ARHIP application packet for Phase 2 of the Attain on 5th renovation/redevelopment project (Attachment A). The project encompasses the construction of 165 multifamily units resulting in a total count of 309 apartments units on the site. Bonaventure is seeking an ARHIP award to assist with the construction and management of 62 affordable units (20% of the total units on the property) and proposes the following unit breakdown:
Ten percent (31) of the units offered at 60% of Area Median Income
• 10 two-bedroom/2 bath units
• 21 three-bedroom/3 bath units
Ten percent (31) of the units offered at 80% of Area Median Income
• 10 two-bedroom/2 bath units
• 21 three-bedroom/3 bath units
The affordable units will be provided in the existing units being renovated during Phase 1 of the project. Bonaventure anticipates high demand for these units, however, should local demand not meet expectations, Bonaventure will offer affordable units in Phase 2 once construction is completed. All 62 units will remain affordable for a period of 30 years. The total AHRIP award is estimated to be approximately $5 million over the entire 30-year period based on the current real estate tax rate.
Should the Board approve the ARHIP incentive grant for Attain on 5th, the County and Bonaventure will enter into a Performance Agreement for the real property tax rebate. This agreement will outline the terms of the incentive grant including the amount of the annual rebate, the timeline for payment of the annual grant incentive, the term of the grant incentive, and the affordability period for the property.
BUDGET IMPACT: Should the Board approve the ARHIP incentive for the Attain on 5th project, funding for the incentive payment will be derived from the increase in real property tax realized from the project. The future real property tax revenue and associated incentive payments would be incorporated into future budgets.
RECOMMENDATION:
Recommendation
Staff recommend the Board approve the attached resolution (Attachment B) approving an ARHIP incentive for the Attain on 5th project and authorizing the County Executive to execute the related performance agreement.
ATTACHMENTS:
A - Attain on 5th ARHIP application
B -- Resolution