2025 First Quarter Report

Dear Faithworks Board and Advisory Board Members, and Friends,

Our first quarter of this "new year" has clearly demonstrated how the work we seek to accomplish is challenging, and results can never be taken for granted.

Rob Seidel and I, as Faithworks' Community Housing Development Organization (CHDO) team, work alongside each project's owner/developer (often a designated team) to fully understand the proposed projects' objectives and, when appropriate, seek a Virginia Housing Community Impact Grant for preliminary design and feasibility studies. The site must be owned or under a two-year site-control agreement by the proposed project applicant in order to qualify for these grant funds. Faithworks experience has repeatedly confirmed that these study results clearly demonstrate Virginia Housing's wisdom to provide resources for this type of up-front assessment of potential projects.

As we continue to celebrate the recent Town of Warrenton's approval of the Hero's Bridge project for veterans at Warrenton United Methodist Church, we have also continued to assist the project as needed. This has recently included finalizing the lease agreement between the church and Hero's Bridge. We remember how, not long ago, the Warrenton Planning Commission had formally denied the project until that devastating, though legally-based, decision was providentially overruled in December by the Warrenton Town Council.

One important purpose of Virginia Housing's Community Impact Grants is to help determine if a project, however compelling, is feasible. This first quarter 2025 has brought a decision that the proposed innovative project in downtown Winchester called "LAMP" is not economically feasible as planned.  We always hope the answer will be "yes". However, if the required preliminary studies indicate "no", and adjustments cannot be made, it is clearly prudent not to proceed. I share this first quarter 2025 "result" because it illustrates Virginia Housing's wisdom to provide grants for this type of study. The LAMP project's property owner participated in every aspect of the process, and made the final decision not to further pursue the effort at this time. 

Both of Faithworks' currently active projects in Winchester, Shenandoah Fellowship Foundation's project for low-income seniors at the old Winchester Hospital site, and Family Promise NSV's efforts to acquire land to develop transitional shelter/housing for homeless families with school-age children, are proceeding very effectively to help each project sponsor accomplish preliminary design, and address the inevitable host of legal and financial challenges to determine the feasibility of their carefully planned projects.

In this context, it's important to appreciate how land and buildings owned by charitable organizations and congregations can offer great value for the creation of affordable housing and related services by reducing costs for a nonprofit project developer, and by offering tax benefits or charitable deductions for project owners, investors, and/or donors. Some local banks also participate in special programs that can provide favorable loan terms and grants to accompany project financing.

Sandi Webster and I met this week with the City of Winchester staff member who is responsible for monitoring project compliance with HUD guidelines for which the City is a channel for funds. It's hard to imagine the complexity of issues and the cast of characters that affect affordable housing production and access to local, state, and federal government resources. As administrations change on various levels the dynamics can shift dramatically. There is no substitute for always operating with good will toward everyone involved, as well as unwavering integrity. Sandi has been responsible for Faithworks financial operations and administration since we became active in the NSV in 2011-12. She is also responsible for the various programs that allow Faithworks to distribute financial assistance to many individuals and households. She has earned the trust of people and organizations throughout the Northern Shenandoah Valley.

Lisa Ensogna, Faithworks newest team member, has a growing number of clients as she coordinates work with contractors that perform accessibility improvement projects for persons who qualify for various accessibility grants from Virginia Housing. Lisa recently facilitated a meeting in Faithworks' office with our team and representatives of Virginia Housing and Blue Ridge Habitat for Humanity, which serves as an excellent accessibility contractor for this Virginia Housing grant-funded program. Before she came to Faithworks, we knew Lisa from her years of experience with the Valley Assistance Network ("VAN") that was operated by The United Way NSV. 

As we've passed through this first quarter of 2025, the significant opportunities that we see ahead have reminded us of the very helpful strategic planning sessions that Erima Fobbs, of Collective Health Impact, facilitated for us a few years ago. No surprise, she is a Virginia Housing-approved consultant! We will be seeking a grant for her to work with Faithworks' board and staff again to help us plan for the future. 

With sincere gratitude for all our wonderful friends and supporters,

Bob