JV Secures Funding for 2nd Phase of Virginia Project
Upon completion, the affordable community will encompass more than 400 units.
Piedmont Housing Alliance and National Housing Trust have closed financing for the $68 million Kindlewood Phase II redevelopment, which will encompass 100 affordable units in Charlottesville, Va.
Funding for the second phase included $9.6 million in 9 percent LIHTC equity that Advantage Capital provided by leveraging the Virginia Housing Opportunity Tax Credit program. HUD—which has seen some recent leadership changes—also awarded the project with $6 million under its Green and Resilient Retrofit Program.
The development team includes architect Grimm and Parker, as well as engineering company Timmons Group. Construction began last month, and completion is slated for the fall of 2026.
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Phase two will include four structures comprising 100 rental apartments and one building encompassing four for-sale units, as well as a financial opportunity center where future residents may access services such as employment assistance, eviction prevention and financial coaching.
Additionally, this phase will contain the first half of a new 1-acre public park set to comprise gardens, adult swings and a pavilion. A community research center, bound to include a child-care facility, a basketball court and Piedmont Housing Alliance’s new headquarters, is also part of Phase II.
Located at 416 Garett St., the construction site is within walking distance of Charlottesville’s Amtrak Station and downtown area.
Tackling the affordable housing supply challenges, developers had more than 1,000 units underway throughout eight fully affordable communities inside the Appalachian market as of February, according to Yardi Matrix data. Nearly 1,800 affordable units were in the planning and permitting stages.
A four-stage affordable redevelopment
Kindlewood is a four-phase affordable redevelopment aiming to replace Friendship Court, a 40-year-old, Section 8 community consisting of 150 units. The project has a zero-resident displacement goal.
Construction on Phase I began in 2022 and finished last year. This stage consists of 106 affordable units, 11 of which are designed for persons living with disabilities.
Upon completion, the entire project will comprise 450 income-restricted units catering to extremely-low income residents earning below 30 percent of the area median income, as well as individuals earning between 30 and 80 percent of the AMI. Phase II will also reserve 54 units for existing Section 8 residents of Friendship Court.
