Vitus Launches $70M Preservation of 491 Historic Homes in Newport News

Backed by Newport News leaders and public-private partnerships, the renovation of Stuart Gardens will preserve affordability for decades.

NEWPORT NEWS, Va.--(BUSINESS WIRE)--Vitus, a national developer and owner of affordable housing, announced today that construction is underway on a comprehensive $70 million renovation of Stuart Gardens I and II, a historic 491-home affordable housing community in Newport News. The project will modernize aging homes and essential building systems while preserving Stuart Gardens’ unique character and extending its role as a source of long-term affordable housing for Newport News families.

“Affordability is our top priority, and preserving Stuart Gardens is an investment in the people and history of our community,” said Sen. Mamie E. Locke, D-Hampton. “This revitalization will protect critically needed affordable housing and improve residents’ quality of life.”

Constructed in 1940, Stuart Gardens is listed on the Virginia Landmarks Register and the National Register of Historic Places. Yet the property has not undergone a major renovation in more than 45 years, and many of its systems have reached the end of their useful life. The project includes upgrades to building exteriors and essential water, heating and cooling systems, as well as kitchens, bathrooms, flooring, parking and accessibility. Energy-efficiency improvements are projected to reduce overall energy consumption across the community by nearly 30%.

Almost all homes at Stuart Gardens are supported by project-based Section 8 Housing Assistance Payment contracts in place since 1980. The contracts serve income-qualified residents and allow participating households to pay no more than 30% of gross income toward rent. Through this preservation, the affordability commitments for Stuart Gardens I and II will continue for more than three decades.

Vitus has partnered with Ivy Community Outreach, Inc., affiliated with Ivy Baptist Church, to provide resident services. Ivy Community Outreach will initially offer a bimonthly food pantry, educational and enrichment opportunities for youth, wellness and social programming for seniors, and broader community support and resource referrals. These services will evolve over time to meet residents’ needs.

To support this project, Newport News Redevelopment and Housing Authority served as bond issuer. Merchants Capital provided construction and permanent mortgage financing, and the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration insured the loan under Section 221(d)(4). Financing and investment partners included Fannie Mae, The Richman Group, Commonwealth Advisors Capital, and Colliers Securities. The capital structure also included federal 4% Low-Income Housing Tax Credit equity, federal and state historic tax credit equity, and a $20 million award from HUD’s Green and Resilient Retrofit Program.

“A project of this scale requires real partnership, and we are deeply grateful for the commitment Newport News leaders and our public, private, and community partners have shown to Stuart Gardens and its residents,” said Samantha Cullen, director of development at Vitus. “That support has allowed us to preserve the community’s history while creating long-term, affordable and accessible housing.”

Vitus recognizes the support of Sen. Mamie E. Locke, Newport News Mayor Phillip Jones, City Manager Alan Archer, Deputy City Manager Eoghan Miller, the Newport News City Council, the Housing Authority, Ivy Community Outreach, and the aforementioned financing and investment partners to help preserve Stuart Gardens and its continued importance to Newport News residents.

ABOUT VITUS

At Vitus, our mission is to create positive impact – one community, one family and one life at a time. Since 1993, we have partnered with lenders, investors, and public agencies to preserve and extend the life of existing affordable housing across the country in markets with the greatest need. Through holistic renovation, we focus on the well-being of residents and rejuvenating the surrounding community to both improve the overall quality of each property and incorporate features that promote physical activity, community gathering, and energy efficiency. To date, our team has provided stable homes for more than 30,000 residents in 30 states. www.vitus.com