CHRISTIANSBURG, Va. - October 2, 2008 - On June 4, VCC and the National Housing Trust (NHT) launched a $30 million site Preservation Acquisition Loan (PAL) pool with DHCD, VHDA, Bank of America, SunTrust and Wachovia to address the need to preserve affordable rental units in the Commonwealth of Virginia.
In September, VCC funded the first PAL loan to acquire a 124 unit senior housing community in Chesapeake, Va. Had the developer not stepped in, the community could have been converted to market-rate housing when it's Section 42 affordable housing contract expired in two years. This means that the low-income seniors who are living at 60% or less of the area median income can afford to stay in their homes.
This also means that the 14-year-old apartment community will be rehabilitated to improve the safety and living conditions for its residents.
"This project is a perfect example of how PAL can preserve affordable housing in the Commonwealth," said Bill Skeen, VCC's Chief Credit Officer. "Not only were we able to keep over 100 senior citizens in their homes, but the developer will also improve their health, safety and overall well-being by improving this community."