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 Stabil...
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