Richmond leaders discuss disinvesting $500,000 in delayed affordable housing project

RICHMOND, Va. (WRIC) — Nearly a year after plans for a new affordable housing project in Richmond's southside. City leaders are voting on whether they should move a portion of allocated funds towards another initiative. This year, the city of Richmond anticipated welcoming a new affordable housing option for Central Virginians called The Heights at Brady Square. However, instead of new residents unpacking their belongings developers, city leaders and investors are still working to get the $55 million project complete. (Photo: Rolynn Wilson, 8News) Out-of-state developer Dakota Partners is behind the project. According to their website, the project is set to bring 264 affordable housing options to Richmond alongside two community buildings and other amenities. In May, 8News reported that the project site located between Lynhaven Avenue and Krouse Streets came to a halt after several contractors did not get paid for their work. This debacle created a strain for small businesses and slowed down the move-in process for interested tenants. The city originally invested $1,700,000 towards the project with $500,000 expected to be paid this year for phase three. According to Monday night's city council agenda, city leaders will vote to transfer that $500,000 into a new line item called ARPA Housing Families First. According to Chief Administrative Officer Lincoln Saunders, the initiative would help Richmond students experiencing homelessness. During an informal meeting Monday night, Saunders says the city could reconsider investing in the project once the litigation process is complete. (Photo: Rolynn Wilson, 8News) This discussion to reallocate funds comes as several contractors await getting their money back and interested tenants hope for the affordable housing option to be complete. "We're going to do our part to make sure those contractors are paid and are made whole. And I hope that the folks who've lent or financed the project hold Brady Square individuals accountable," said Mayor Levar Stoney. 8News first reached out to Dakota Partners in April, a spokesperson told us: “Dakota experienced significant COVID-related cost overruns and material procurement issues resulting in funding shortfalls and project delays. We are working diligently with our sub-contractors, partners, lenders, and investors to rectify the situation. We anticipate resolution in the near future.” In recent months, the developer continued to say they expect a resolution in the near future. (Photo: Rolynn Wilson, 8News) A spokesperson from Virginia Housing previously told 8News the agency invested $8,688,978 in the affordable housing project. We followed up to learn whether they had decided to disinvest in the project. A spokesperson told 8News: "Virginia Housing has not disinvested in the project and has no plans to do so. We are in active conversations with the other financing partners and are making progress.  We are hoping to come to a solution in the near future." A final vote is expected at Monday night's city council meeting.