Piedmont Housing Alliance | Predevelopment Line of Credit

NeighborWorks Capital is pleased to extend a $2,000,000 predevelopment line of credit to Piedmont Housing Alliance (PHA). Funds will be used for the predevelopment costs associated with four potential LIHTC developments in the greater Charlottesville, VA area.  

Three of the four developments will target the AMI range of 30-60% and will be made up of 50-71 units. The city of Charlottesville is experiencing an affordable housing crisis as many residents have been priced out of living within the city. In addition, there is a need for additional housing stock, with combined stabilized vacancy rate across rental communities being 1.7%, however the tax credit vacancy rate is lower at 1.1%. There has been expanded market rate housing stock, with 2,427 units coming online since 2010.  Affordable housing stock has only increased by 236 units across four rental properties since 2010, so the need for these developments is great. 

PHA was formed in 1983 as the Thomas Jefferson Housing Improvement Commission. Four allied organizations in the Charlottesville-Albemarle County area combined in 1996 with the Charlottesville Housing Foundation bringing substantial assets to the alliance including land, and the organization took on a new identity as Piedmont Housing Alliance. They manage 13 properties located throughout the City of Charlottesville and surrounding counties. Additionally, PHA runs a certified small business lending CDFI, and provides resident services to members of its communities, and the five-county region of Nelson, Fluvanna, Louisa, Albemarle, and Greene. 

This is the second loan NeighborWorks Capital has extended to Piedmont Housing Alliance, and we are pleased to continue to support their mission to create affordable housing opportunities and foster community through education, lending, and equitable development.