A fully solar-powered affordable housing development is under construction in Henrico County, Virginia.
The Helios, a joint venture between Spy Rock Real Estate Group and Crescent Development, will consist of three mid-rise buildings and a single-story clubhouse. Solar panels will be installed on the roofs of each building along with an adjacent solar array on about 2.5 acres, according to the development team.
In earlier projects, the developers have utilized rooftop solar panels, but those were limited to covering the electrical load of the common areas. This time, with more real estate to add a ground array, they have the ability to create a unique development that will be 100% solar powered, says Zac Frederick, founder and CEO of Crescent Development, a Richmond, Virginia-based firm focused on affordable housing.
For residents, this means they will not have an electrical bill. The new development will serve households earning no more than 60% of the area median income.
“The Helios is a pioneering affordable housing project, entirely powered using a large private solar array,” says Andrew Basham, principal of Spy Rock Real Estate Group, a Richmond-based firm that’s developed more than 4,000 apartments as well as other properties in the past 15 years. “To our knowledge, this hasn’t been done before in Virginia.”
The construction process and solar-powered utilities will meet the Virginia Energy ready home code and EarthCraft Gold community standards for energy efficiency.
The development is also notable because it replaces a dilapidated motel that had been on the site. Henrico County officials have been targeting the redevelopment of older motels, so this helps meet that mission. The project was able to utilize a local program that helped with the costs of the water and sewer connections.
The $54 million development is being funded by a $35 million construction loan from Bank of America and a $23 million low-income housing tax credit (LIHTC) equity investment arranged by Red Stone Equity Partners. Additional financial partners include Virginia Housing, the 4% LIHTC issuer, and Harrisonburg Redevelopment and Housing Authority, the tax-exempt bond issuer. Cedar Rapids Bank & Trust is providing permanent financing. The project is also supported by solar investment tax credits.
“When we can work with developers who are excited about what they are doing, making a difference in their market and for residents, while focusing on vibrant, sustainable communities, it’s always a great combination,” says Maria Barry, national executive, Community Development Banking, at Bank of America.
The Helios’ prominent solar features as well as the developers’ market experience distinguish the project, according to Barry, noting that sustainability is also a focus for the bank.
While this is Bank of America’s first deal with Spy Rock Real Estate Group and Crescent Development, it is looking at partnering on more projects with the team.
KBS is the general contractor on the project. Poole & Poole Architects is the project architect, and VHB Engineering is tasked with completing the civil/site design. Once complete, Steelhead Management will provide property management and residential services.
