CPDC Partners with RRHA for Hundreds of New Affordable Apartments in Richmond
By: Trevor Smith
Two years ago, CPDC was met with great opportunity.
Through a competitive bidding process, the organization was selected by the Richmond Redevelopment & Housing Authority (RRHA) to redevelop their Frederic A. Fay Towers under the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD). RAD is a program allowing public housing authorities to create public-private efforts to replace outdated public housing buildings.
Next week, CPDC will break ground on phase 1 of that project: Highland Park Senior Apartments, an $11 million historic preservation and adaptive reuse. When completed late next year, the new Highland Park senior community will be the new home for 77 Fay Tower residents.
The 77 units at Highland Park is just the beginning.
CPDC is working with RRHA and City of Richmond’s department of Economic and Community Development to finalize development plans for the remaining 123 units that will be included as part of the Fay Towers redevelopment. Two sites in Richmond’s Jackson Ward have been selected for those communities and are currently undergoing approvals.
The Highland Park Senior Apartments financing structure consists of nine percent Low Income Housing Tax Credits awarded by Virginia Housing Development Agency and purchased by Capital One via Hudson Housing Capital; federal and state historic tax credits; and a $750,000 commitment from the City of Richmond–$500,000 as a Section 108 loan and $250,000 in Community Development Block Grant funds. The development team includes KBS Construction, Grimm and Parker, Compass, and Marcostie Advisors.
The new community will feature one-bedroom units averaging 600 square feet. Senior residents will pay no more than 30 percent of their income towards rent. The auditorium of the former school building will be renovated into a community center, salon and kitchen and a former stage will be kept intact for events.
J. Michael Pitchford, CPDC President and CEO, explains that the Highland Park project is the first piece of the organization’s planned contributions to a broader neighborhood development effort to revitalize the Highland Park commercial corridor and connect senior residents to available, but often untapped, local resources.
“We see Highland Park as the first step in a broader revitalization of Six Points,” said Councilwoman Ellen F. Robertson, Richmond City Council – Richmond Gateway 6th Voter District. “When an organization with a reputation for quality housing like CPDC joins forces with local leaders, we anticipate a community development initiative that will bring serious, positive change for the betterment of all of our citizens in Richmond. This is such an exciting time for the community and it all started with CDPC making the first major investment.”
“CPDC brings decades of expertise not only in redeveloping housing that serves as a catalyst to reinvigorate entire neighborhoods—but also in tailored solutions for senior residents,” said Pitchford. “Our goal is to engage and connect low-income senior residents to the resources they need: transportation, quality healthcare, and access to local organizations offering senior services. That kind of community building is at the core of CPDC’s value in the Richmond market.”