An income-restricted senior apartment building being constructed in Gloucester will receive $260,000, part of more than $24 million in Affordable and Special Needs Housing loans from across Virginia unveiled by Gov. Ralph Northam on Monday.

Last summer, Bay Aging broke ground on Daffodil Gardens Phase II, which is being constructed adjacent to the original Daffodil Gardens. The Phase II project will support construction of 40 apartments in a single, three-story building served by an elevator. The building is located less than a mile from Riverside Walter Reed Hospital and numerous other services and shopping.

October 2021 is the contract completion month for the project and Bay Aging said it hopes to be able to hold a big in-person event at that time to celebrate the grand opening.

Overall, the 28 projects across the commonwealth receiving the flexible, below-market-rate loans will create or preserve 1,635 affordable housing units for low-income Virginians. The funding will help increase access to affordable housing, reduce homelessness, and provide permanent supportive housing options for individuals with intellectual and developmental disabilities, a release from the governor’s office stated.

The Virginia Department of Housing and Community Development administers the loans, which combine state and federal resources to provide a simplified and comprehensive application process. Funding comes from three main sources: the federal HOME Investment Partnerships Program, the federal National Housing Trust Fund, and the Virginia Housing Trust Fund.

Affordable and Special Needs Housing loans are awarded through a competitive process. Forty-three applications were received for this round of funding, requesting more than $42 million.

Two other projects in the region—Kilmarnock Village in Lancaster ($240,000) and the Woods at Yorktown in York County ($800,000)—were also recipients during this cycle of loans.