Bay Family Housing has been notified it will receive a large grant from the Virginia Housing Development Authority to help fund construction of 40 apartments for older adults in mid-Gloucester.

Joshua Gemerek, senior vice president of Bay Family Housing, said June 26 that VHDA approved the local application for a $3.8 million competitive grant.

Although that’s the major part of the $5.68 million needed for the project, Gemerek said, it would not be possible to arrange “gap funding”—such as other money from sources like Virginia Housing and Community Development, Federal Home Loan Bank of Atlanta, and VHDA—without the large grant in hand.

Bay Family Housing plans to build the new apartment complex on an approximately five-acre site off Fiddlers Green Road, adjacent to the Daffodil Gardens senior complex it now operates. Gemerek said he hopes construction will begin at the site in 2018 and be completed in late 2019.

The existing project has a requirement...