AGENDA DATE: 9/2/2026
TITLE:
Title
Habitat for Humanity -- Southwood Phase II Performance Agreement
SUBJECT/PROPOSAL/REQUEST: Approval of a resolution authorizing the County Executive to sign a Performance Agreement for Habitat for Humanity’s Southwood Phase II redevelopment
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Herrick, Ruege, Dimock, Sumner, Rakes
PRESENTER (S): Dimock, Sumner
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Habitat for Humanity is redeveloping a 100-acre trailer park in the Scottsville District. The County entered into a performance agreement with Habitat for Humanity and the Albemarle County Economic Development Authority for Phase I on July 1, 2019. The Board subsequently approved the rezoning of the 86 acres constituting Phase II, with 1,000 dwelling units of single family detached, single family attached, and multi-family housing, on November 2, 2022 following Planning Commission review on April 26, 2022. The approved Code of Development is included as Attachment A.
STRATEGIC PLAN: Goal 4: Encourage a vibrant community with economic and recreational opportunities that serve all community members; Objective 4.3: Implement Housing Albemarle
DISCUSSION: A performance agreement would establish criteria under which Habitat may receive incentives equal to a percentage of increased property tax revenue collected on designated parcels. In return, Habitat must deliver a mixed-income mixed-use redevelopment that includes safe, clean, stable, affordable housing for rent and for purchase by persons of various income levels. Phase II of Habitat's intended redevelopment is designated as Southwood Villages 3-11.
An agreement would require:
- minimum housing production (approximately 227 units),
- non-displacement of existing residents,
- long-term affordability (minimum 40 year affordability period for home ownership),
- maintenance of income diversity and community integration,
- development of a community center, and
- transportation and utility infrastructure development.
A proposed agreement would include a maximum incentive of $15,750,000 over 20 years. Incentives would be issued only for fiscal years in which required milestones were met.
BUDGET IMPACT: Incentives would be paid from the incremental real property tax realized from the project. Any future real property tax revenue and associated incentive payments would be incorporated into future budgets.
RECOMMENDATION:
Recommendation
Staff recommends approval of a resolution (Attachment B) authorizing the County Executive to enter a performance agreement with Greater Charlottesville Habitat for Humanity for the Southwood Phase II redevelopment.
ATTACHMENTS:
Att. A - Southwood Phase II Code of Development
Att. B - Resolution