CHARLOTTESVILLE, VA – (CVILLE RIGHT NOW) – Charlottesville City Council used Monday’s regular meeting to take another step toward the creation of 501 Cherry Avenue, a multi-use area to benefit residents of the Fifeville neighborhood, through unanimous authorization of a forgivable loan to the Piedmont Housing Alliance.
The project represents a partnership between the Fifeville Neighborhood Association, Woodard Properties, and Piedmont Housing Authority (PHA). The development will include 71 affordable rental homes, commercial space for the Music Resource Center, and a community grocery store.
The city’s FY2025 budget allocated $3.85 million from its Capital Improvement Program to be spread out over three years. The investment is structured as a forgivable loan with a 42-year term and a 3% interest rate. As long as the project is completed and operated in accordance with all of the requirements, the loan and all accrued interest will be forgiven. To ensure the requirements are met, the agreement also includes mandatory annual reporting by PHA.
Once recorded, the affordability covenants will remain in effect for the full 99 years. In addition to $324,000 to fund rental assistance, the funds may be used for site work, construction of the affordable units, and soft costs such as planning and design.
Of the 71 units, at least four will serve households at or below 30 percent of the area median income, or AMI. Ten units will serve households at or below 40 percent AMI for at least five years. Eleven units will serve households at or below 50 percent AMI, with the remaining 46 units to serve households at or below 60 percent AMI.
Construction is expected to begin later this year, with completion in 2027 and full occupancy by 2028.
