NEWPORT NEWS, VA. — Seattle-based affordable housing developer Vitus has begun a $70 million rehabilitation of the 491-unit Stuart Gardens affordable housing community in Newport News. Merchants Capital arranged $97.8 million in permanent and bridge financing for the project, including a $62.8 million HUD-insured loan and $35 million in equity bridge financing.
Vitus will modernize the homes, which were constructed in 1941 and are listed on the Virginia Landmarks Register and the National Register of Historic Places. The community originally served as defense housing for military personnel and wartime workers. According to Vitus, the last renovation was completed in 1981.
The project includes upgrades to building exteriors and water and heating and cooling systems. The developer also will update kitchens, bathrooms, flooring, parking and accessibility features.
Units are restricted to households earning up to 60 percent of area median income. Nearly all units are also covered by project-based Housing Assistance Payment (HAP) Section 8 contracts, under which residents generally contribute about 30 percent of their gross income toward rent. The HAP contracts have been in place since 1980.
Through this preservation effort, the affordability commitments will continue for approximately 30 years. Completion is slated for January 2028.