Norfolk housing authority gets $9.2M in stimulus funds

By Philip Newswanger | Inside Business

Norfolk's housing authority is receiving federal stimulus money.

Norfolk Redevelopment and Housing Authority got $9.2 million to improve two rental-assistance properties in the city.

The grant is the outcome of the American Recovery and Reinvestment Act, which Congress and President Obama authorized last spring to spur jobs amid a glut of job losses nationwide.

The U.S. Department of Housing and Urban Development is disbursing the money to housing authorities across the country.

Work is under way on two projects, contracts worth $3.09 million, the housing authority reported.

The projects consist of road and site improvements at the 257-unit Oakleaf Forest community, a project worth $2.6 million, and window replacement at the 310-unit Calvert Square community, a project valued at $513,000.

The Norfolk-based engineering firm of C. Allen Bamforth Jr. designed the Oakleaf project and Precon Construction Co. of Chesapeake is the contractor.

Via Design Architects in Norfolk and AirTech Solutions Inc. of Stafford are the two contractors for the Calvert Square project.

The balance of the grant will go for additional improvements at the Young Terrace, Partrea, Hunter Square and Bobbitt properties, the housing authority reported.

"The grant amount is $9,193,644," said Kelly Williams, spokeswoman for the housing authority. "The money is readily available for NRHA to draw down as work is accomplished."

Currently, 40 percent of the grant is obligated under contract, she said, adding that the remaining 60 percent is out for bid and will be under contract by March.

"To date, $243,719 has been spent for design work, construction startup and administration," Williams said. "The pace of spending will increase rapidly as the construction projects get up to full speed."

The housing authority, constrained by state law in awarding contracts, has more flexibility in choosing contractors with this money.

"The law allows NRHA to award to someone other than the lowest bidder - basically the next lowest bidder - for a variety of reasons, the best example being if it is believed that the low bid is unrealistically low," Williams said. "In general, NRHA does have to take the low bid on construction work. For professional services, like architecture and engineering, the contract award is based on qualifications."

Under the law, the housing authority is required to "buy American," a provision that has encountered criticism.

"HUD can, and has, granted waivers, but NRHA has not asked for one and does not expect to," Williams said.

Job creation is at the heart of the law. But White House officials and Congress have dithered over which job numbers are correct.

"Tracking job creation is difficult, but NRHA is required to report the jobs created and/or jobs saved," Williams said. "So far, the work is saving or sustaining jobs more than creating new ones.

"In the January 2010 report to HUD, 37 jobs were reported to have been involved in projects to date," Williams said. "This will increase as the remaining contracts are executed."

The types of jobs involved are architects, engineers, job-site superintendents, carpenters, heavy equipment operators, pipelayers, electricians, plumbers, concrete finishers, asphalt crews, drywall installers and finishers, painters, inspectors, and project managers, Williams said.

"It is rumored that more funding will be announced in 2010, but it's uncertain as to when and how much," Williams said. "This is all in addition to the annual capital fund grant NRHA receives, which is roughly $6.5 million."