NEWPORT NEWS, Va. — Two parking lots could become the sites of affordable housing in Newport News.
Newport News leaders discussed a multi-million dollar project during a city council meeting Tuesday.
Officials are considering a $30 million proposal for a pair of rental housing communities in the city’s downtown area. The two properties are located at 100 29th Street and 311 33rd Street, and Maryland-based developer TM Associates is leading the project.
The housing developments would include 31 units each and would lease to families who make anywhere between 30 and 80 percent of the area’s median income. The median income in Hampton Roads is $100,500, meaning the range amounts to roughly $30,000 to $80,000.
“The need for affordable housing has only been exacerbated the last few years,” said Karen Wilds, executive director of Newport News Redevelopment and Housing Authority.
The city will not pay for the project, according to Wilds.
“But we are ensuring that this project is going to be used for affordable housing, and the city will have a role in monitoring the incomes of the families that are leased to after the project is developed,” said Wilds.
A spokesperson for the developer said they are seeking low-income housing tax credits, and the process requires the city’s help. The process allows the developer to receive lower interest rates and in return offer affordable housing to lower and moderate-income people.
TM Associates is also working with Virginia Housing, the commonwealth’s housing agency, on funding among other financial sources. The company is also partnering with the Virginia Department of Health and the non-profit, Petersburg Community Development Corporation, to ensure quality and green housing is provided in the shipyard neighborhood of the city, according to a release from the developer.
“One of the things we believe is a direct result of the pandemic is a major increase in rental amounts across the market,” said Wilds. “The need has only gotten worse in the last few years.”
In January, the city’s housing authority voted to signal its intent to support the project.
Virginia state code requires the city council to give its authority. Then, the proposal will likely return to the housing authority in April, said Wilson.
“Those seeking housing with incomes in the lower ranges, it’s particularly tough for them,” said Wilson.
In Newport News, the number of people who wish to apply for subsidized housing vastly outweighs the number of units the city can offer. Wilds said that pushed the housing authority to close the waiting list application portal.
She said it has become harder for families to find places to live, and this could help.
If all goes according to plan, the project could begin construction later this year.