Richmond, VA — A year after the announcement of a new affordable housing development in Richmond’s Southside, city leaders are now considering redirecting funds originally allocated for the project due to ongoing delays and financial challenges.
The Heights at Brady Square, a $55 million affordable housing initiative, was expected to provide much-needed housing for Central Virginians. However, nearly a year after its planned completion, the project remains incomplete, and the city is grappling with how to move forward.
Initially, the City of Richmond invested $1.7 million in the development, with an additional $500,000 earmarked for phase three of the project in 2024. But with little progress made, city officials are now debating whether to redirect that $500,000 into a new initiative aimed at addressing student homelessness.
On Monday, Richmond’s City Council held a discussion about moving the funds into a new line item labeled ARPA Housing Families First, a program designed to assist students in the city who are experiencing homelessness. Chief Administrative Officer Lincoln Saunders noted that this transfer could provide immediate relief to vulnerable families and children, particularly as the housing project continues to face setbacks.
“There’s an ongoing litigation process that’s preventing us from moving forward with the Brady Square project, but we’re still committed to seeing it completed,” Saunders said during an informal meeting. “However, in the interim, we need to take action to address immediate housing concerns for students.”
The project’s delays have been attributed to significant cost overruns and material procurement issues, particularly related to the impact of the COVID-19 pandemic. Developer Dakota Partners, which is responsible for the construction of The Heights at Brady Square, has acknowledged the financial difficulties and the resulting delays. In a statement earlier this year, a company spokesperson said, “Dakota experienced significant COVID-related cost overruns and material procurement issues resulting in funding shortfalls and project delays. We are working diligently with our sub-contractors, partners, lenders, and investors to rectify the situation. We anticipate resolution in the near future.”
However, as the months pass with little progress, city leaders are expressing frustration. Richmond Mayor Levar Stoney addressed the issue during Monday’s meeting, emphasizing the importance of holding developers accountable while ensuring that contractors involved in the project are paid for their work.
“We’re going to do our part to make sure those contractors are paid and are made whole,” Stoney said. “And I hope that the folks who’ve lent or financed the project hold Brady Square individuals accountable.”
The city’s current discussions revolve around finding a balance between completing the Brady Square project, which remains a priority for affordable housing in the region, and addressing immediate housing needs in Richmond. The ARPA Housing Families First initiative, which could see the reallocation of the $500,000, is expected to provide temporary housing relief for students who may otherwise face homelessness.
As of now, the resolution to redirect the funds will be put to a vote by the City Council, with members expected to make a decision in the coming weeks. Meanwhile, residents and contractors alike are waiting for any sign of progress on the Brady Square development.
The Heights at Brady Square was initially hailed as a solution to the region’s affordable housing crisis, but the delays and funding challenges have raised questions about the project’s future. City leaders have reiterated their commitment to affordable housing, but with mounting uncertainties, many are wondering when—or if—the development will ever reach completion.
