RRHA finances development projects throughout Richmond to support affordable housing needs and economic development.
RRHA has the statutory power to issue bonds and to provide grants, loans, interest supplements, and other programs of financial assistance to finance development projects in the city of Richmond and the Commonwealth of Virginia.
RRHA’s authority to issue bonds is found under Virginia Housing Authorities Law, Chapter 1, Title 36 of the Code of Virginia of 1950, as amended. Such bonds may be issued for any of RRHA’s corporate purposes. Bonds may be issued on a taxable or tax-exempt basis (Virginia Code, Section 2.1-326.2:1).
How the Process Works
Developer identifies project and determines eligibility of project to be financed through RRHA.
Developer makes appointment with RRHA staff to discuss receiving assistance for the project.
Developers requesting financial assistance for a qualified residential development may apply by completing the application form.
A non-refundable application fee of $3,500 is required at the time the application is submitted.
Application fees are subject to revision at any time with the approval of the RRHA Board of Commissioners.
RRHA staff and bond counsel reviews the application for completeness and compliance with applicable laws.
Additional information may be requested, or revisions requested or the application may be returned to the applicant for good reason during the review process.
A notice is published in the newspaper advising of public hearing on the project. Bond counsel prepares the notice and arranges for publication.
An “Inducement Resolution” prepared by bond counsel is presented to the RRHA Real Estate Committee and full RRHA Board of Commissioners indicating RRHA’s intent to assist the developer by issuing Bonds for the project upon the satisfaction of certain terms and conditions with a recommendation that City Council approve the issuance of the Bonds.
A knowledgeable representative of the Developer should appear at each meeting of the RRHA Real Estate Committee, the RRHA Board of Commissioners, City Council, and any assigned city government committee where the application is considered to respond to questions and/or present the project.
Following RRHA Board approval a package is transmitted to City Council recommending Council approval of the issuance of the bonds. The applicant is responsible for making sure the item is approved by City Council.
The City Council resolution is introduced and referred to the appropriate City Council Sub-Committee for further review and a recommendation. City Council action on the paper is taken at a later date.
Following City Council approval, RRHA and the Developer apply for an allocation of tax-exempt bond issuing authority from the Virginia Department of Housing and Community Development. The actual application for allocation is prepared by RRHA bond counsel.
Developer shores up financing, and the structure and details of bonds are negotiated and set. Draft bond documents are reviewed and finalized.
After bond documents are finalized, Developer asks the RRHA Board of Commissioners to adopt a final bond resolution.
(Bond closing) Bonds and related documents are signed by the appropriate parties.