Additional affordable housing options coming soon to Newport News

An affordable housing preservation developer has purchased City Line Apartments in Newport News – marking three similar building projects in Virginia.

The building constructed in 1979, with its last renovation almost 20 years ago, will receive improvements in all 200 units, including new kitchen and bathroom appliances, vinyl plank flooring and HVAC units. The building will also undergo a complete roof replacement.

Shared spaces will be renovated with a new computer room and community library. Expansive exterior renovations are planned, including the addition of a new playground, an outdoor fitness center, basketball court, BBQ area and community garden.

Construction is expected to be completed in December.

“This development is vital to the Newport News area, which is lacking in affordable options for working class and Section 8 housing residents,” said Anand Kannan, President at CPP. “This purchase and renovation will extend the affordability of the property’s 200 units for years to come.”

With sustainability top of mind, the project will meet a Home Energy Rating System of 80 (HERS80 rating) after the renovation.

“We believe that improving housing is the first step in transforming the lives of community members,” said Seth Gellis, Senior Vice President at CPP. “This is an existing tax credit community that will have a fresh 30-year affordability agreement on it due to this renovation. We are excited that City Line Apartments will continue to be rented to tenants who are at, or under, 50 percent of the area’s median income.”

The project’s Land Use Restrictive Agreement will be in place for 30 years.

The Housing Assistance Payments contract was set to expire in 2025, but with the renovation the project will earn a new 20-year HAP contract.

The project is part of the Low-Income Housing Tax Credit program.

Permanent financing will be provided by Redstone and the equity investor is PNC Bank.

CPP’s total development investment is expected to be approximately $57 million, with a purchase price of $30.1 million. Renovation costs are estimated at $55,000 per unit.

CPP is working to ensure the impact on residents will be as minimal as possible.

For more information on Community Preservation Partners, visit https://www.cpp-housing.com/.