As work on the Villa Heights housing initiative continues, Henry County and its partners are searching for funding sources to construct additional homes. At their meeting at 3 p.m. Tuesday at the county’s administration building, officials will consider accepting a loan and grant funding package of $412,587.
The Villa Heights housing initiative is one of the county’s flagship efforts to transform blighted and abandoned structures into affordable housing. Earlier this year officials from a number of agencies broke ground on the Collinsville project, which will allow the county to construct new housing, as funds become available, to sell at minimal cost.
When completed, the Villa Heights subdivision will have had 13 houses available for sale.
The funding package is from West Piedmont Planning District and Virginia Housing. It’s part of a $1.2 million pool earmarked for increasing regional housing inventory.
“The West Piedmont Planning District Commission (WPPDC) executes agreements with profit and non-profit developers for projects that would increase the inventory of affordable housing in the region through the development of new units,” reads part of the agreement.
The package is split between a pair of loans and a grant. The loans, which are for $159,546 and $153,040, will come in quarterly installments. Since disbursement of the loans is spread out, the total amount could be subject to change.
“This amount is subject to the availability of funds and may decrease as a result of future reductions to the funding provided to WPPDC by Virginia Housing,” reads part of the agreement.
Repayment of the loans is expected after homes have been purchased.
The loans come with certain criteria. Homes constructed with loan funds must be completed and “move-in ready” within 24 months of receiving the loan.
“All projects for which these funds are utilized must be completed by June 30, 2027,” reads part of the loan agreement. “Extension requests must be submitted by April 30, 2027.”
The additional $100,000 in grant funding can be used to reduce home prices for buyers who meet criteria put forth by Virginia Housing. This includes buyers whose household income does not exceed 150% of the area’s median household income.
Collinsville’s median household income is around $50,465, according to census data.
Homes are expected to cost around $200,000.
