Construction is on the horizon at Premier Circle. The former Red Carpet Inn was transformed into an emergency shelter during the COVID-19 pandemic, and helped nearly 100 people exit homelessness. The facility closed in June of 2023, leaving a gap in Charlottesville’s network of shelter services, but construction on the next phase of the project is expected to begin by the end of September.
Virginia Supportive Housing will start work on 80 units of permanent supportive housing at the site this year, followed by 40 to 50 units of low-income housing constructed by Piedmont Housing Alliance. The 80 housing units are slated to open in the first half of 2026, with the low-income housing expected to open two years after, in 2028.
The housing project has taken the combined effort of a number of cooperating partners. Piedmont Housing Alliance purchased the property in 2021 with a $4.25 million grant from the Charlottesville Area Community Foundation. A commitment of $700,000 from Albemarle County and $750,000 from the City of Charlottesville allowed Virginia Supportive Housing to begin construction this year.
Although Premier Circle initially was a low-barrier overnight shelter, the long-term goal has always been to transition the site into permanent housing.
“So the operative word is permanent,” says Sunshine Mathon, executive director of Piedmont Housing Alliance. “Emergency shelters really are that, they’re for emergencies. Permanent supportive housing is intended to be a permanent housing solution for folks seeking a permanent home.”
Permanent supportive housing is an approach to alleviating homelessness that falls under the housing-first model. The idea is that stable housing is the first requirement and foundation from which individuals can address other causes that may have led to a period of homelessness.
“It’s not a panacea for every person,” Mathon explains. “There are people for whom the PSH [permanent supportive housing] model won’t be the perfect fit, but it is widely regarded across the nation as the primary tool to provide that stepping stone for people to transition from being in an emergency context into longer term permanent housing.”
In its strategic plan to end homelessness, the Blue Ridge Area Coalition for the Homeless says a lack of affordable housing is one of the primary problems in the community, and recommends new permanent supportive housing units as a solution.
As a long-term approach, permanent supportive housing is geared toward those for whom homelessness has been persistent, long-lasting, or recurring. Last year, on January 25, 2023, the area’s point-in-time count recorded 191 people experiencing homelessness in Charlottesville and the surrounding counties. About a quarter of them (53) met the criteria to be counted as chronically homeless.
On its website, Virginia Supportive Housing says Premier Circle aims to functionally end chronic homelessness in the community. That means there would be enough housing units available for all of those who need one.
Numerically, while that goal seems within reach, things can be more complicated, and the need is often more than predicted. However, Virginia Supportive Housing does have a model to demonstrate the kind of impact this project can have. The organization also manages The Crossings on Preston Avenue. That 60-unit facility opened in 2012 and for the next four years there was a downward trend in the number of people experiencing homelessness in the area. The region’s PIT count reached a low point in 2016, with many pointing to The Crossings as a key factor.
Premier Circle hopes to repeat that success. The 80 units of permanent supportive housing will be studio apartments supported by a voucher system. People with vouchers pay 30 percent of their income in rent, allowing a sliding scale based on what individuals can afford.
“Our preference would be to lease to chronically homeless individuals first, those most likely to die on the streets,” says Julie Anderson, director of real estate development with Virginia Supportive Housing. “But also, we can lease to individuals who are experiencing sporadic homelessness as well as low-income individuals.”
Low-income apartments, both in the 80-unit development and the subsequent project, are separated into income brackets based on the area median income. There will be apartments reserved for incomes that are 30 percent of AMI and below, some for 50 percent, and some for 60 percent, with the aim that each of those brackets would pay no more than 30 percent of their income in rent. In Albemarle County, the median income for households is $97,708, according to data collected by the U.S. census.
The model also includes wraparound services for accessing other supports that residents may need, whether it’s acquiring disability benefits, medical support, substance abuse counseling, or reconnecting with family and friends. The building will have two case managers that residents can go to for help navigating the supportive services available.
“One thing that’s important is that our average length of stay is four to six years for everybody, although we don’t have a timeline, [and] residents can stay as long as they need to.” Anderson says. “Ninety-five percent of our residents don’t return to homelessness.”
Permanent supportive housing projects demonstrate a real and lasting impact, not just for those experiencing homelessness, but also for those at risk of entering homelessness. It’s a long-term safety net.
“This might seem obvious,” Mathon says, “but I think it’s important to state it. The solution to homelessness is homes. And sometimes we struggle, in our society and in our communities, to really make that direct line of association.”