“Urban chic meets suburbia” – that’s how Colony Village’s website describes its new apartment complex. Located in Chesterfield County—a suburb of the Greater Richmond area in Virginia—the housing features luxury amenities including granite countertops, stainless steel appliances and durable hardwood floors. Additionally, the development includes assets to help residents thrive, ranging from a fitness center to door-to-door trash recycling service.
Bottom line: Colony Village provides quality housing options for families and was made possible because its more than $18 million in financing was insured by HUD. My office works with HUD-approved lenders to provide developers with the resources they need, both for construction and for the long-term health of the project.
It also provides incentives to get much-needed credit to the market because FHA backing allows responsible developers to borrow more with a reasonable down payment. There are lower monthly mortgage payments because of longer term loans with a low, fixed interest rate. Finally, there is no personal liability for the developer if the loan should be foreclosed.
I am proud that we are helping to meet the housing needs of families. It is especially important right now because demand for rental housing is increasing. Studies show that there are 43 million renter households across the nation, with the 2000s being the strongest decade of renter growth over the past half-century.
I’m thrilled that Colony Village is helping to address this increasing need. With rents ranging from $800 to $1,400, the average renter is estimated to have an annual gross income from $28,800 to $50,400.
In addition, the availability of HUD-insured mortgages for apartment complexes has been a significant factor in the production of additional units throughout the Richmond region and other parts of Virginia. For example, Colony Village developers George Emerson and Phil Roper have used them to finance eight other Virginia apartment properties totaling almost 1,300 units.
In total , HUD is making a profound impact for families and their futures. It’s also strengthening the economy and communities across the country.
We want to continue to make an impact so if you want more information about HUD-insured multifamily programs, click here.
Toni Schmiegelow is a senior management analyst in the Office of Field Policy and Management in HUD’s Richmond Field Office.