A planned public housing development will move forward with Orange County as the guarantor.
The development, known as the Madison Road Supportive Housing Project, has been in the works for several years. It consists of creating a four-story, 21-unit planned public housing development in the Town of Orange on property currently occupied by the long defunct Sheltering Arms Homeless Shelter and a community services building on Madison Road, near the Dogwood Village entrance. The Sheltering Arms building is owned by Orange County while the other is owned by Encompass Community Supports, formerly known as Rappahannock-Rapidan Community Services. The two existing buildings will be demolished to make way for the housing development.
In 2023, the multi-million dollar project was awarded $900,000 through an Affordable and Special Needs Housing loan, as well as low income housing tax credits. The apartments will be for those who meet the federal standards for affordable housing. Fair market rental rates are established by the U.S. Department of Housing and Urban Development and updated annually. Some residents will also have housing vouchers which will allow them to pay only a percentage of their income.
Last week, Orange County Supervisors cleared one hurdle of the project–who would be the guarantor. According to county administrator Ted Voorhees, based on the tax credits, it was discovered that Encompass cannot legally serve as the guarantor. Attempts to create a regional housing authority with other jurisdictions, including Madison County, were unsuccessful. Voorhees said the guarantor ensures project development is completed and guarantees tax credits are delivered to investors, as well as making sure the project is compliant with low-income housing requirements for 15 years. He said there are safeguards in place to ensure the county is not “on the hook” for any money if things go well, but could stand in for any piece that doesn’t. However, he said, the county will incur costs if the project doesn’t move forward.
“We have a derelict property that needs to be demolished,” Vorhees said. “This is a great project.”
District 5 Supervisor Bryan Nichol said the project is a no-brainer, reiterating Vorhees’ statement that the county would incur costs if it didn’t move forward.
“We would incur significant costs if [we] didn’t move this forward,” he said. “There is a project here we can implement. I’m 100% supportive of this.”
Encompass Executive Director Sheryl Reinstrom said the organization already operates a similar project which is at full occupancy with an average five-year wait to get individuals into the program. She said the intent of the Madison Road project would be to establish a client priority selection process to give priority to Orange County residents and those most vulnerable.
“As members of the county, [their] needs are met first,” she said.
District 4 supervisor Crystal Hale said she has the most confidence in the project and the Encompass leadership.
“This is a much needed project,” she said. “We need affordable housing. We have many vulnerable families and individuals. This won’t serve all of them, but will be an excellent start.”
Hale said the project would also be an improvement to the current site.
Supervisors unanimously agreed to be the guarantor.
