Title
Resolution Approving the Formation of NextGen HRHA by the Hampton Redevelopment and Housing Authority
Purpose
PURPOSE/BACKGROUND:
Code of Virginia Section 36-19(12) provides that a housing authority has the power to form corporations and other legal entities, on its own behalf or with any person or public or private entity, subject to approval of the local governing body. The Hampton Redevelopment and Housing Authority ("HRHA") seeks City Council approval to create NexGen HRHA, a Virginia nonstock, nonprofit corporation that will be governed by the HRHA Board of Commissioners. As part of HRHA's long-term strategy to strengthen and modernize our affordable housing portfolio, HRHA is preparing to submit a HUD (U.S. Department of Housing and Urban Development) application to reposition HRHA's remaining public housing units under HUD’s repositioning programs that require ownership of HRHA tax credit properties and public housing properties be transferred to a separate legal entity to complete the conversion in compliance with HUD regulations. To ensure we maintain full local control, preserve affordability, and responsibly steward these assets for current and future residents, the HRHA proposes to create a new nonstock entity named NexGen HRHA. This entity will be wholly governed by the HRHA Board, allowing the HRHA Board to meet federal requirements while continuing to operate and reinvest in these properties for the benefit of the community, and will enable HRHA to access more flexible financing options, attract additional investment for property improvements, and position the HRHA to better respond to changing housing needs across Hampton.
Discussion:
Benefits to the Community:
Preservation of Affordability: Ensures long-term affordability of existing public housing units through project-based Section 8 assistance.
Improved Housing Quality: Positions HRHA to access private capital for rehabilitation and modernization of older units.
Community Stability: Supports continuity for residents without displacement.
Local Control: Retains full governance of properties under the HRHA Board through NexGen HRHA.
Financial Implications / Costs to the City:
No Direct Financial Cost to the City: The creation and operation of NexGen HRHA will not require financial contributions from the City of Hampton.
No Impact to the City’s Budget: All repositioning-related costs, including legal setup, transfer documentation, and compliance, are paid by HRHA.
Funding Sources: HRHA will utilize existing HRHA funding. No City funds are requested or budgeted.
Impact:
Alignment with City of Hampton Policy Initiatives: The creation of NexGen HRHA directly supports several core priorities outlined in the City of Hampton’s Strategic Plan and related master plans, including:
1. Strategic Plan Element: Preserving existing affordable housing: Alignment: Repositioning public housing units under HUD’s Rental Assistance Demonstration (RAD), Section 18 or other programs-facilitated through NexGen HRHA-enables modernization and reinvestment in aging properties. This action preserves affordable housing stock and strengthens the character of established communities.
2. Strategic Plan Element: “Economic Growth” Objective: Promote reinvestment and attract private capital to support community development. Alignment: Establishing NexGen HRHA allows HRHA to access private investment tools. This public-private partnership model enhances the financial sustainability of affordable housing without burdening the City budget.
3. Strong and Healthy Families Goal: Ensure all residents have access to safe, quality, affordable housing options. Alignment: Repositioning ensures long-term affordability through Section 8 subsidies while preserving local oversight and continuity of services. It also supports family stability by avoiding displacement.
Recommendation:
Rec
Approve the resolution.
Body
WHEREAS, the Hampton Redevelopment and Housing Authority ("HRHA") is undertaking a long-term initiative to strengthen, modernize, and preserve affordable housing opportunities in the City of Hampton;
WHEREAS, HRHA intends to reposition its remaining public housing units under the U.S. Department of Housing and Urban Development’s repositioning programs (e.g., Rental Assistance Demonstration (RAD), Section 18, Section 22 and RAD/Section 18 Blend);
WHEREAS, HUD regulations require the ownership of public housing and certain Low-Income Housing Tax Credit properties to be transferred to an independent legal entity in order to complete the conversion process;
WHEREAS, on June 25, 2025, the Board of Commissioners of the Hampton Redevelopment and Housing Authority ("HRHA") approved a resolution the creation and incorporation of a nonstock, nonprofit Virginia corporation, to be named Next Gen HRHA, which will be governed by the HRHA Board of Commissioners to provide for the proper transfer of tax-credit real properties to the HRHA and properly dispose of public housing units, subject to approval of the Hampton City Council, as required by Code of Virginia Section 36-19(12);
WHEREAS, the formation of NexGen HRHA will enable HRHA to maintain full local control, ensure long-term affordability, access private financing, attract new investment for property improvements, and more flexibly respond to changing housing needs across Hampton;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hampton, Virginia that NexGen HRHA will serve as a vehicle for the ownership, preservation, and reinvestment in housing in accordance with applicable HUD requirements, and supports the implementation of the City’s housing policy goals by preserving affordable housing; and
BE IT FURTHER RESOLVED, that in accordance with Code of Virginia 36-19(12), the creation and incorporation of NexGen HRHA, as proposed by HRHA is approved.