AGENDA DATE: 10/21/2026
TITLE:
Title
Affordable Housing Investment Fund Recommendations
BODY
SUBJECT/PROPOSAL/REQUEST: Consider recommendations for AHIF funding including FY2027 competitive process
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Dimock, Sumner
PRESENTER (S): Kaki Dimock
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The Albemarle Housing Investment Fund (AHIF) was established by the Albemarle County Board of Supervisors in 2019 with the purpose of financially supporting affordable housing projects that address the county’s strategic and housing goals with one-time funding. AHIF may be used for predevelopment activities, land acquisition and assembly, land development, buydown of construction loan interest, water and sewer fees, construction of affordable rental units for individuals at 60% or below area median income, construction of owner-occupied units for individuals at 80% or below area median income, preservation and renovation of existing affordable units, or significant energy upgrades of existing affordable units. Proposed projects must be shovel-ready, within the existing Albemarle County Development Area, and remain affordable for at least 30 years for rental units and 40 years for owner-occupied units.
Historically, AHIF funding was provided to applicants on a first come, first served basis, as funding was available. In FY2026, a competitive process was established as a mechanism for distribution of budgeted funds. Following the inaugural process, the board approved process changes for the FY2027 competition including making 90% ($6,329,700) of budgeted AHIF funds available for grants or loans, and 10% ($703,300) for staff-initiated projects addressing emerging needs or meeting goals of Housing Albemarle. The FY2027 adopted budget includes $7,033,000 for the AHIF.
The FY2027 AHIF accepted applications, submitted electronically, in July. A Review Team consisting of external subject matter experts and internal county staff members convened on three occasions to review scoring criteria and results.
STRATEGIC PLAN: Quality of Life: Encourage a vibrant community with economic and recreational opportunities that serve all community members.
DISCUSSION: Seven applications were submitted for the FY2027 AHIF competitive process with funding requests of $17,336,074, including a request of $3,000,000 in loans. Two of the seven applications scored above the 75% minimum scoring threshold:
Habitat for Humanity of Greater Charlottesville - Home-Ownership - 89%
Proposal to construct 46 affordable units in Southwood Neighborhood, 11 affordable units on Proffitt Road, and 2 affordable units in Crozet for home ownership in the amount of $1,770,000.
Habitat for Humanity of Greater Charlottesville - Southwood Promise - 80%
Proposal to provide rental assistance for 11 families living in Southwood, relocation assistance for 9 families living in Southwood, and construction of 8 affordable units in the amount of $2,239,500.
Two additional applicants scored just under the 75% threshold score, because the proposed projects do not assume the same level of site control required by traditional new construction activities, which was a scored item in the application. As a result, these scores do not reflect deficits in the proposed projects or implementation plans. Staff recommend the board consider these two applications for funding given this background:
LEAP Energy - Efficiency Upgrades - 74%
Proposal to provide 92 energy efficiency upgrades for low and moderate income families that are cost burdened in the amount of $757,350.
Piedmont Community Land Trust - Brookhill & Greenstone - 71%
Proposal to support construction of 61 condominiums and 17 townhomes at Brookhill Square and Greenstone in the amount of $1,700,000.
Three proposals received scores well below the funding consideration threshold:
Piedmont Housing Alliance - Revolving Affordable Rental Endowment - 54%
Proposal to buy down the rent on 23 units to ensure additional affordability for seniors at or below 30% AMI in the amount of $1,250,000.
Piedmont Housing Alliance - Regional Transitional Housing/Motel Acquisition - 44%
Proposal to purchase a motel to establish 58 transitional housing units for individuals and couples experiencing homelessness in the amount of $6,000,000.
Shimp Engineering - Park Road Manufactured Home Park - 29%
Proposal to construct 14 new pad sites including infrastructure and loans to ensure affordability for an additional 73 sites for 10 years in the amount of $619,224 and $3,000,000 in loans.
Reviewers and staff recommend awards to the two applicants with scores above the 75% threshold in the amounts requested or $4,009,500, and the two applications with scores just under 75% in the amounts requested or $2,457,350 for a total of $6,466,850. While this amount exceeds the 90% of available AHIF established for the competitive process, these additional funds are available and full funding would ensure all four projects are implemented as described.
In addition to the four projects described above, staff recommend funding three items from the staff-initiated pool of funds reserved from the AHIF, intended to respond to emerging needs and/or implement goals of Housing Albemarle:
Financial Opportunity Center - Housing Navigation & Eviction Prevention - $100,000
Financial Opportunity Center staff provide housing navigation, financial decision-making, and eviction prevention activities for Albemarle County community members to supplement ACERP. Future requests will be submitted through the contractual component of the Human Services Funding Process.
SupportWorks Housing - Vista 29 Supportive Services - $66,667
SupportWorks Housing provides on-site supportive services for residents of permanent supportive housing programs. SupportWorks seeks funding from the City of Charlottesville and the Charlottesville Area Community Foundation in the same amount. Future requests will be submitted through the Human Services Funding Process.
Regional Housing Summit - $10,000
Albemarle County has been a regular contributor to the costs of the Regional Housing Partnership’s Housing Summit as well as a beneficiary of the content and discussion.
If approved, staff will submit formal appropriation requests for these seven projects in the amount of $6,643,517, on a future Board agenda, and establish formal agreements with the awardees. If approved, this will leave approximately $389,483 remining in the FY2027 budgeted AHIF.
BUDGET IMPACT: If approved, $6,643,517 will be drawn from the FY2027 AHIF budgeted amount of $7,033,000, leaving approximately $389,483 remaining in the FY2027 budgeted AHIF.
RECOMMENDATION:
Recommendation
Staff recommend approval of the 2 proposed projects scoring above the 75% scoring threshold in the FY2027 AHIF competition, 2 projects scoring just under the threshold, and the three staff-initiated projects as described, using funds budgeted in the FY2027 AHIF.
ATTACHMENTS:
Attachment A: AHIF Guidelines May 20 2026
Attachment B: FY2027 AHIF Score Sheet