Program Description and Funding Priorities
The AHIF was established by Albemarle County to provide a funding mechanism for affordable housing-related projects. The primary purpose of the AHIF is to provide financial resources to address the affordable housing needs of individuals and families who live or work in the county by promoting, preserving, and producing quality, long-term affordable housing options; providing housing related services to low- and moderate-income households; and providing support for non-profit and for-profit organizations that actively address the affordable housing needs of low- and moderate-income households.
Albemarle County is will prioritize project proposals that:
- Provide housing options for households with income less than 60% of AMI;
- Include mechanisms to ensure permanent (90-year) affordability;
- Use County funding awards to leverage significant amounts of federal, state, or private funding;
- Are shovel ready. For projects that will be applying for Low Income Housing Tax Credit (LIHTC) financing, ‘shovel ready’ means the applicant will be submitting a LIHTC application during the next available application period;
- Support the economic and social diversification of Albemarle County neighborhoods; and
Provide on-site resident services.
Additional priority will be given to projects that serve specific household types, based on vulnerability and/or gaps in existing inventory, which will be established annually by the Board of Supervisors. Types of households that may be given priority status may include, but not be limited to senior households, families with children under the age of five years, or persons experiencing homelessness.
Distribution of Funds
AHIF funds will be provided as grants or loans to nonprofit housing developers and/or providers, or for-profit developers constructing affordable housing units in Albemarle County. Annual fund balances will be distributed as described below.
B. Grant Funding – $1,984,088
Grant funding is being made available to nonprofit developers of affordable housing, as well as to for-profit developers if their proposed project is comprised of 100% affordable housing or receives financing through the Low Income Housing Tax Credit program. The amount available for grant funding this application round is $1,984,088.
C. Loans – $1,984,088
An additional $1,984,088 in AHIF funds will be made available to both for-profit and nonprofit housing developers for the construction or preservation of affordable housing. Funds will be provided as zero-interest loans to nonprofit organizations, or as two percent (2%) simple interest loans to for-profit developers.
NOTE: The Albemarle County Board of Supervisors reserves the right to direct some or all of the AHIF fund balance toward addressing an emerging housing need or emergency situation.
Eligible Applicants
Albemarle County will accept and consider proposals from non-profit and for-profit qualified applicants that meet the following eligibility requirements:
- Nonprofit applicant is a designated 501(c)(3) nonprofit organization or equivalent, or a government entity.
- Applicant must not be in violation of any federal, state or local laws/regulations.
- Applicant has owned and/or developed at least one development that contains proffered affordable housing units, county funded or otherwise supported affordable housing units, income-restricted units, or market rate housing units that have been placed in service. If applying for Low Income Housing Tax Credits, the proposed project must meet Virginia Housing’s eligibility requirements as outlined in the Virginia Housing Low-Income Housing Tax Credit Manual.
Eligible Projects
To be eligible for an Affordable Rental Housing incentive, the proposed project must meet the following general eligibility criteria:
- Eligible projects must have proposed new construction, an addition to an existing structure, conversion of an existing non-residential structure to residential units, or the substantial rehabilitation of an existing affordable multifamily structure.
- Eligible projects must be located within one of Albemarle County’s designated Development Areas.
The applicant must own or have site control of the eligible project site.
- If the proposed project is not a by-right development, an applicant’s rezoning application must be approved by the Board of Supervisors, prior to the consideration or award of funds from the AHIF.
- At least 20% of the total residential units in the project must be offered as affordable housing as defined under Housing Albemarle.
- Minimum affordability periods of 30-years for rental units and 40-years for owner-occupied units must be maintained.
Eligible Activities
AHIF funds will be used to support affordable housing projects located within Albemarle County, unless otherwise approved by the Board of Supervisors. Eligible uses of the funds include:
- Predevelopment activities (nonprofit organizations only);
- Land acquisition and assembly;
- Land development;
- Buy-down of construction loan interest;
- Water and sewer connection fees;
- Construction of affordable rental housing units that serve households with incomes at or below 60% AMI;
- Construction of owner-occupied housing units affordable to households with incomes at or below 80% AMI;
- Preservation of existing housing occupied by households with incomes no greater than 80% AMI.
- Energy efficiency upgrades.
Please see the AHIF Guidelines for more detailed information about program activities.
