Portsmouth Housing Authority proposes housing trust, tax payment changes to expedite projects
PORTSMOUTH — The city’s Redevelopment and Housing Authority is requesting more local investment into housing needs by proposing a trust fund, housing commission, and tax payment changes to expedite ongoing projects.
The housing authority met in a joint work session with Portsmouth City Council in November to update members on the status of its housing projects, renovations and programs. The meeting included several requests from PRHA board members who say increased investment from the city can improve uncertainty with federal housing dollars, the city’s competitiveness for such dollars, and its reach.
The housing authority oversees more than 1,200 units of affordable and voucher-based housing across the city, according to PRHA Executive Director Alisa Winston.
Winston said some of the authority’s “best work yet” includes the new Lexington Reserve Senior Housing, which offers 105 units to seniors aged 62 and older and features a walking trail, exercise fitness room, exam room, dog park and courtyard seating. Residents were slated to move into the new units throughout December. The community is located at the site of the former Lincoln Park housing community.
Another project moving along is the full demolition of Swanson Homes and its 210 asbestos-ridden units and community center. The site sits on 17 acres, and demolition will provide an opportunity for mixed-use redevelopment. Winston said the goal is mixed-use.
But another major project — the construction of Twin Pines Apartments — is delayed due to potential federal and state changes to the underwriting process and voucher program, Winston said. The project’s conditional use permit allows construction to begin this summer, but will likely need to be extended due to a $5 million funding gap.
PRHA also wants to expand its senior rehabilitation program that started in the 1990s and was revamped with city funding in 2025. The program allows PRHA to make repairs for seniors so they don’t have to leave their homes or relocate. But the demand is high — PRHA can tackle 10-15 requests each year, but 60 applications have been received, Winston said. Some of the targeted communities for such repairs include Seaboard Square, Westbury Cottages, Westbury Holley Square and Westbury Pine.
To aid such limitations, Winston asked council members to consider establishing a payment-in-lieu-of-taxes, or PILOT, program to reduce the authority’s overall tax burden — a model she said most surrounding cities follow. PRHA pays full real estate taxes on properties except for former and current public housing sites.
Winston proposed a formula as an example: The authority collects $100,000 in rent from tenants at a property, deducts $40,000 in utility costs, leaving $60,000. The authority would then pay 10%, or $6,000, to the city for the property.
Another proposal comes from a trip city leaders took in 2025 to Greenville, South Carolina. Winston said Greenville has an established housing trust fund that the city contributes $1.5 million annually. The increased local investment would allow PRHA to limit its reliability on federal and state funding, strengthen the city’s competitiveness for tax credits and grants and make periodic repairs and modernizations.
“(U.S. Department of Housing and Urban Development) has often, and the state has often, told us you need to look at other funding. Don’t solely rely on HUD funding or federal funding, because it may or may not be there from the state as well,” Winston said.
The trust could also aid the authority in being a “first choice” for future mixed-used development. Winston said PRHA wants to do more to meet “the missing middle.”
“Those are residents who earn slightly too much to qualify for public housing or Section 8 housing, but they still struggle to find affordable housing,” she said. “And we want to support balanced, mixed-income communities to strengthen Portsmouth’s workforce and economy.”
It’s not yet known what the fiscal impacts of such requests would be on the city’s budget. Council member Yolanda Thomas suggested the city follow Norfolk’s lead and establish some type of housing commission that can bring all stakeholders to the table for a “bigger picture” view of the city’s housing needs and directions.
Natalie Anderson, 757-732-1133, natalie.anderson@virginiamedia.com
