HomeMy WebLinkAboutARB202300018 Correspondence 2023-03-13R C H I T E C T$
To
Date
Project
Subject
Dear Margaret,
memo
Margaret Maliszewski
Albemarle County Department of Community Development
March 13, 2023
ARB-2023-18: Hickory Hope Apartments A (Southwood Block 12) by Piedmont Housing
Alliance
Response to ARB202318 Action Letter Condition 1
Thank you for your help guiding Southwood Hickory Hope Apartments through the Architectural Review Board
process. Please accept the letter from Piedmont Housing Alliance below as a formal response to the Board's
condition of approval #1 in the Architectural Review Board's Action Letter dated March 8, 2023.
Piedmont Housing Alliance ("PHA") is in receipt of the Charlottesville Architectural Review Board ("ARB") formal
determination in ARB-2023-18: Hickory Hope Apartments (Southwood Block 12) (the "Project"). We are
pleased that the Board unanimously approved the request, pending staff administrative approval of certain
conditions, including that PHA, "Consider revising the design of Building A to establish more of a "front" facing
the EC street."
In order to properly consider this possible redesign, PHA sought estimates for additional brick and associated
labor costs to extend the corner brick change of the building farther around the Old Lynchburg Road facing
portion of the building. We have received the contractor's estimate, which, though not tremendously large,
does result in significant increased overall expense for the Project.
In addition to the contractor's estimated increased cost for materials and labor, we must consider our
architectural firm's expense to update contract sets/plans/documents already approved by Virginia Housing
plus our Low -Income Housing Tax Credit ("LIHTC") consultant's expense for adding the costs to the
development budget. Every added expense adds up quickly and financing the project is quite expensive to
begin with, as well as quite complicated. In addition, PHA just learned from Virginia Housing ("VH") that they
are imposing a $220,000 "standby fee" for the loan commitments. And that is on top of significant tax-exempt
bond finance fees that have negatively impacted our credit pricing and overall budget. The development
budget is set and under consideration by lenders, VH and investors. At this stage, we must protect the
contingency line as much as possible.
In sum, although making the change suggested by one of the board members carries a relatively small price
tag in and of itself, when PHA considers the totality of associated necessary costs, the change becomes
untenable. At this stage of the Project, with construction set to begin very soon, PHA cannot afford any
additional costs or delays aside from what we already know is coming from VH and construction cost
escalations. It is essential to Project integrity and success that PHA move forward with review of current
building designs without added expense of any further design and budget changes.
If you have any questions or would like to see more documentation, please contact Whitney McDermott.
Thank you,
From Whitney McDermott, AIA
wmcdermott@brw-architects.com
CC: Michael Eaton, Ernecia Coles, Bruce Wardell