On Tuesday, the Richmond City Council is being asked to authorized more funding for the Civic Center Apartments Project.
According to the agenda, the city is proposing to cover the additional $2 million loan using Housing Funds for the Civic Center Apartments which is turning the Motel on 24th Street into 48 supportive housing for the chronically homeless.
The move would increase the city loan from $8.3 million to $10.3 million. In addition, $14.5 million is being provided by the state with Homekey funding.
This project dates back to May 2024 when the project received its conditional award. In March 2025, prior to the acquisition of the motel, the City committed an additional $1.4 million to the project, increasing the loan amount from $6.9 million to $8.3 million.
According to the staff report, acquisition and ground leasing of the property to 425 Civic Center LP were executed in April 2025. Construction started with demolition work in Summer 2025. During demolition activities, additional needs were identified due to extensive long-term water intrusion that required extensive structural repairs.
These unforeseen elements requiring additional capital fundings include:
- Extensive degradation of the façade and underlying framing work;
- Extensive plumbing issues, including but not limited to additional waste line and sewer upgrades that are required for project completion;
- Mold remediation and repairs have been identified in the bathrooms due to leaks; and
- Asbestos investigation to determine if remediation and repairs are needed in the affected plumbing areas.
These additional scope items are necessary to complete the project.
Editors Note
Below is background information on the project which is spending $24.7 million for 48 rooms.