The Harrisonburg Housing Authority voted to authorize staff to negotiate with Enterprise Community Partners on syndication for a planned multifamily and senior housing project and approved motions to pursue property purchases and a purchase-and-sale agreement tied to financing.

Board members approved a motion authorizing staff to pursue Enterprise’s syndication proposal for two developments — an 83-unit multifamily project (a 4% tax-credit deal) and a 63-unit senior project (a 9% deal) — and to negotiate final documents and a letter of interest. Authority staff reported initial credit pricing at about $0.77 per dollar for the 4% deal and $0.85 for the senior deal, and said the projects would be advanced concurrently where possible to lower mobilization and contractor costs. Staff also described a financing plan that includes an infrastructure loan from United Bank, payoff of existing owner financing and a National Housing Trust securitization, and a planned Locust loan of $2,000,000 to cover part of the cash needs.

Separately, the authority authorized staff to work with Ryan Homes to finalize a letter of intent related to purchase of lots for a townhome component; the motion as recorded in the meeting asked the board to “authorize me to work with Ryan Homes to finalize the letter of intent, to purchase slots for the snow town system.” That motion was seconded and approved by voice vote.

The board also approved a purchase-and-sale agreement for a different property priced at $1,050,000. The agreement includes a 275-day inspection period and was made contingent on the authority finalizing financing and, where required, city council approval. The authority has engaged Auto Studios (Christiansburg) to perform architectural services for related sites and described combining three properties into a coordinated financing package.

Staff said the overall estimated capital need for the combined projects is about $11,000,000 and listed recent awards and commitments supporting the effort: a $5,000,000 housing trust fund award for the senior housing, $4.5 million for the multifamily project, and a $1,000,000 grant from the Federal Home Loan Bank; staff said closing the United Bank infrastructure loan would allow payoff of existing owner financing and other securitizations and allow the projects to move into construction later this year if conditions hold.

Why it matters: The syndication and property moves are central to the authority’s plan to add both affordable multifamily and senior housing units; authorizing negotiations is the board’s step toward firm commitments and closing. Board members asked about credit pricing, sequencing of the senior and multifamily construction, and site work and soil/walk estimates; staff said final underwriting and site analyses are under way.

Board action and next steps: The authority approved motions on Enterprise syndication negotiations, the Ryan Homes letter-of-intent work, and the $1.05 million purchase-and-sale agreement. Staff said they will continue underwriting, finalize lender selections (staff said they were soliciting final proposals from several underwriters/finance firms), and return to the board with finalized loan documents and closing schedules.

A final certification following a closed session was read into the record stating only matters identified in the motion to convene closed session were discussed and that the board complied with the Virginia Freedom of Information Act before resuming public action.