"An Albemarle County affordable housing project has been denied federal tax credits that officials have said may be key to making the project a reality.

But Albemarle Housing Improvement Program officials are still hopeful that they can garner federal money to build Treesdale Park, a proposed 90-unit affordable rental complex that would sit off East Rio Road.

Treesdale is an expensive, difficult project, officials have said. The site has many slopes, meaning there is a need for retaining walls, and the cost of development in the Charlottesville area is high. The expense of the “green”-certified project is one of the main reasons AHIP, a nonprofit that receives support from Charlottesville and Albemarle, didn’t score well in the federal matrix that determines whether it gets federal tax credits.

Another key factor, officials said, was that the county had not yet approved the detailed plans for the project. The Board of Supervisors gave its nod to the project last year after a tense meeting in which some nearby residents complained that the project was poorly designed and that an already congested East Rio couldn’t handle more traffic.

Officials hope to have approval of their plans in time to reapply for the federal money by February. They’re also re-designing parts of the project to reduce the price tag. Finding suitable rentals for low-income households has been a struggle, officials have said, and AHIP’s three-building project would be rented to households that earn between $20,000 and $40,000 a year.

“You’re competing with Hampton Roads [for the tax credits] and they have very flat land and building costs aren’t as expensive as ours,” said Vito Cetta, a local developer who sits on AHIP’s board of directors.

Cetta said officials hope about $10 million of the $15 million to $18 million project would be awarded from the Federal Low Income Housing Tax Credit Program.

“We think it’s as competitive as any project can be,” said Michael Matthews, AHIP’s president. “We’re optimistic. There are so many hurdles to projects like this.”

The organization estimates monthly rent for a one-bedroom apartment would run between the upper $300s and lower $400s; two-bedroom apartments would cost about $600 a month; and three-bedroom apartments would cost between $700 and $800." (Jeremy Borden, The Daily Progress, June 10, 2008)