Highland Grove project in Richmond receives $2.5 million to build affordable homes

RICHMOND, Va. (WRIC) -- The Highland Grove project in the City of Richmond has received $2.5 million in housing funding.

On Friday, Jan. 9, the City of Richmond and the Partnership for Housing Affordability (PHA) announced in a press release that Highland Grove, a community in Richmond's Northside that has 253 mixed-income units, has received funding of $2.5 million.

The funding comes from the Virginia Workforce Housing Investment Program, which is administered by Virginia Housing.

It will assist with the construction of 53 affordable homes that are for sale at Highland Grove for residents earning between 80% to 120% of the Area Median Income (AMI).

The organizations that are constructing and selling these homes to buyers are project:HOMES, the Better Housing Coalition, Richmond Metropolitan Habitat for Humanity and the Maggie Walker Community Land Trust.

“This $2.5 million award builds on the strong momentum behind the Highland Grove development and the many partnerships which have turned it into reality,” Mayor Danny Avula said. “By continuing to invest in mixed-income housing, we’re committing to a future where all of our residents can realize a path to homeownership for generations to come. We have a long way to go, but achievements like this are critical in laying a strong foundation.”

The construction of Highland Grove began in 2012 with the building of 128 rental apartments and townhouses.

In 2024, the phase of the project shifted to homeownership with 125 for-sale homes. Including detached single-family homes, duplexes and triplexes.

Of these homes, 60 were made to be affordable for the 80% to 120% of AMI buyers. Another 65 units were built by Eagle Construction, a private sector builder.

The press release stated, "This mixed-income approach provides a more equitable housing model and meets a need for attainable homeownership options."

The Better Housing Coalition has served Highland Grove's master developer by overseeing the improvement of sidewalks, streets, utilities, lighting and landscaping.

“This award is a paragon example of collaboration,” said Jovan Burton, executive director of PHA. “By bringing the city, non-profit partners, and state partners together, we will be able to provide greater housing opportunities to Richmond families. Highland Grove really does stand as a model for how mixed-income housing communities can erase inequities in housing attainment.”

In 2024, the Workforce Housing Investment Program was launched by Gov. Glenn Youngkin to help with housing investments in areas that experienced job growth for middle-income workers.

That statement said, "Increasing the supply of affordable housing in the City of Richmond is essential to expanding economic development growth. These new, for-sale homes will allow Richmond to safeguard the city’s ability to grow inclusively, support essential workers, and increase the return on investment that housing delivers to the local economy."

Site work for the second phase of Highland Grove has begun, and the City of Richmond has extended water, sewer and other needed utilities for construction sites.

New homes are already underconstruction, with some expected to be completed later in 2026. The whole project is expected to be completed in December 2027.