Housing Development Fund

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Current Size: 80%

City of Harrisonburg ARPA Housing Development Fund

Last Updated:  December 19, 2023


Housing was recognized as a local priority prior to the COVID-19 pandemic. However, economic disruptions exacerbated the shortage of affordable housing and disproportionately impacted populations already experiencing housing insecurity. As part of a robust community engagement process, increasing safe, accessible, and sustainable housing was identified as a top public priority.

The Harrisonburg City Council allocated $2,000,000 of the City’s ARPA funding for a Housing Development Fund to expand the supply of affordable housing.


Program Materials 

Notice of Funding Opportunities [431KB]

Income and Rent Limits [465KB]



  • Notice of Funding Opportunity issued August 8, 2023
  • Application period from August 22 – October 6, 2023
  • Award announcement December 12, 2023


Availability of Funds

The Notice of Funding Opportunity invited developers and other organizations to apply for funds to support preservation and new construction of affordable housing, including homeownership opportunities, for populations impacted by the pandemic. Applicants were expected to demonstrate a high degree of readiness and capacity, with projects that effectively utilized resources to offer long-term affordability to those with the greatest needs.


Selection Process

The six-member evaluation committee included staff and others with expertise in housing and community development and finance. Applications were screened for eligibility and evaluated and scored along seven main criteria: experience and capacity; timeline and budget; site readiness; consistency with identified housing needs; contribution to affordable housing and effective leveraging and use of funds; innovative project design; and community engagement and public participation. Ten applications in total were received, requesting a combined $7,646,500. After much deliberation, the committee selected two projects for awards. 


Suter Street - Central Valley Habitat for Humanity

  • $700,000 as a grant or forgivable loan (20 to 30-year affordability period)
  • Eleven homeownership units (four 3BR duplex units, four 4BR duplex units, three 3BR triplex units)
  • Serving homebuyers at 60% area median income (AMI)
  • Program model features homebuyer readiness and financial counseling

Commerce Village II Annex - Harrisonburg Redevelopment & Housing Authority

  • $1,300,000 as an interest-only loan (30-year affordability period)
  • Sixteen one-bedroom rental units (eight first-floor units, four of which will be 504/ADA compliant)
  • Serving veterans at 50% AMI and chronically homeless at 30% AMI
  • Program model features income-based affordable rents and supportive services


Housing Fund Contact
Liz Webb, Housing Coordinator